Logica reports interim results for the six months ended 30 June 2008

 

Headlines

• Good H1 performance with Group revenue up 6% and revenue growth in all geographies
• Significant revenue and profitability improvement in UK
• Adjusted operating profit up 16% to £118 million
• Cash conversion for the first half improved to 86%, with net debt at £565 million at 30 June
• 4% increase in interim dividend to 2.4p
• Increased FY 2008 revenue guidance
• Progress on revitalising Logica on track
• Key management appointments made in the first half
• Good progress in winning new orders, with book to bill at 105%
• Nearshore and offshore headcount at 3,900, with Chennai centre to open in September

For the six months ended 30 June 2008, results were as follows:

Continuing Operations	H1 2008 Actual	H1 2007 Actual	Growth
			Actual	ProForma
Revenue	£1,769m	£1,525m	16%	6%
Adjusted operating profit	£118m*	£90m	31%	16%
Adjusted operating margin	6.7%*	5.9%
Basic adjusted EPS	5.4p*	4.0p	35%
Dividend per share	2.4p	2.3p	4%
Statutory results:
Operating profit	£29m	£44m
Profit before tax	£13m	£29m
Basic EPS	0.4p	1.8p

^{* Before £46 million of exceptional items (mainly associated with the plan to revitalise Logica) and £43 million of amortisation of intangible assets as per explanatory note 5 on page 16.}
 

Commenting on today’s announcement, Andy Green, CEO, said:

“We had a good first half.  Growing momentum with customers led to revenue growth above the market in all our major geographies.  Across the Group, we are seeing the early benefits of our common brand, values and culture, and a real sharing of expertise.

We are on track in executing our plan.  Over the last four months, we brought in experienced new management talent, won a number of significant long term contracts, transitioned work offshore, began to put the right organisation and incentives in place and initiated the cost savings required to fund our investments.

“Given the market environment, we remain alert to changes in customer sentiment but our first half performance gives us increased confidence that 2008 pro forma revenue growth will be closer to 4%, compared to our previous guidance of around 3%.”

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For further information, please contact:

Logica Media relations:
Carolyn Esser/Louise Fisk +44 (0) 7841 602391/+44 (0) 7798 857 770 

Logica Investor relations:
Karen Keyes/Frances Gibbons +44 (0) 20 7446 1338/+44 (0) 7801 723682

Brunswick:
Tom Buchanan/Craig Breheny +44 (0) 20 7404 5959