Business and technology service company Logica’s revenue grew 5% with double digit growth in France and Northern and Central Europe.
The company said, announcing its financial reults for the first half that orders grew 13%, driving record outsourcing order backlog up 22% to £2.8bn.
Consulting and Professional Services revenue also returned to growth, up 1% for the first half, said the company, while outsourcing revenue growth remained strong, up 11% in the first half.
There was margin improvement in three of the company’s six geographies. Its UK division also returned to growth in the second quarter.
However, adjusted operating profit went down to £113m, after incurring £20m of restructuring costs.
The company also said that challenging market resulted in underlying loss in the Benelux in the first half.
Cash restructuring costs combined with the working capital impact of strong revenue growth led to operating cash outflow in first half, said Logica.
The company said that full year revenue growth is expected to be at a similar level to the first half.
CEO Andy Green said Logica grew above the market in the first half, with particularly strong gains in Outsourcing, in France, Northern and Central Europe, and in the commercial sectors in the UK.
"Our order backlog is at record levels. This good topline performance reflects our success in winning some of the most exciting projects across Europe, including our largest ever HR BPO contract with Ahold, the Dutch retailer, and the significant contracts with Shell and the UK’s Serious Organised Crime Agency signed earlier in the year.
"Our Public Sector clients continued to implement spending cuts, with a particularly sharp decline in the Netherlands leading to disappointing profitability in the Benelux.
"We expect full year revenue growth to be at a similar level to the first half and to drive profit growth over last year. Margin improvement is now dependent on progress in the Benelux."
