London, UK-based LogicaCMG did not release any figures for the period, but said that orders rose 37% in the first three months of 2005, which included new awards from the UK Ministry of Defense, the Borough of Barnet and Combined Insurance.
LogicaCMG added that it is in negotiation over several large contracts. The company’s shares rose 5.9% to 178.50p in morning trading on the London Stock Exchange following the announcement.
LogicaCMG said that it is on course for organic growth of between 4%, to 5% in full-year 2005, which would be ahead of the 3.5% growth for the Western European IT services market this year, as predicted by research company Gartner.
The company expects to perform strongest in its core UK and Dutch markets. It said that its UK arm continues to deliver strong margins, although it noted that billing rates were under pressure on short-term projects. LogicaCMG also said its Dutch operation remained healthy, although it plans to reduce the number of temporary contractors it currently utilizes, by increasing its use of offshore delivery.
LogicaCMG has struggled in Germany and France in recent years, but said that both would show signs of improvement in the second half of the year following recent restructuring. The company said its mobile software division, Wireless Networks, is on course to increase its revenue and profitability in 2005.
