Logica has reported revenues of £939m for the first quarter of 2010, a decrease of 2% compared to £954m for the same period a year ago. The company posted an average of 4% revenue decline in the previous three quarters.
Outsourcing continued to be the main driver for growth with revenue rising 11% to £369m, reflecting market demand for cost reduction. Consulting and professional services revenue was down by 8%, compared to an average decline of 11% in the previous three quarters.
Geographically, the company posted stable or growing revenues in all regions except Sweden and the Benelux, with the most significant decline in the Benelux. Revenues from France, the UK and Northern and Central Europe totaled £208m, £187m and £192m, respectively. Revenues from Benelux and Sweden region were £136m and £135m, respectively.
Andy Green, CEO of Logica, said: “We saw some positive trends in the first quarter with particularly strong demand in France and continued revenue growth in the UK balancing the continuing difficult market conditions in the Benelux and to a lesser extent, Sweden.
The pipeline of opportunities to help our clients evolve their businesses remains good as demonstrated by important wins at Posten Norden and Swedish food processing companies, Lantmännen and Scan.”
The company expects revenue to decline modestly in the first half, with full year revenue and adjusted operating margin expected to be at a similar level to 2009 on a constant currency basis. It expects to outperform the market and improve margins over the medium term.
