Logica H1 'in line with expectations'

LogicaCMG says that its first-half performance has been in line with the guidance given at the company’s AGM in May.

Its overall IT performance has been in line with expectations, with staff reductions going ahead in Germany.

Revenue was down 3%, primarily due to decline in Germany.

Excluding the reduction in Germany, revenue for the half, at constant exchange rates, was flat compared to the second half of last year.

First-half margins were slightly lower than those achieved in the second half of 2003 in line with seasonal trends and the impact of lower revenue in Germany.

The UK performed strongly while the Benelux countries made further progress following a promising end to 2003.

France continued to develop, building on the improvements seen during the second half of 2003 and was profitable for the first half.

In the wireless networks section, the company won two MMS contracts with European operator Tier 1. Two small loss-making segments were axed.

Order intake was strong with a book to bill ratio of 1.22:1.

Revenues were down some 10% over the same period last year.

Gross margins were slightly higher than expected because of a more favourable revenue mix and operating expenses were marginally-improved.