LOG.L Share News (LOG)

Revenues picked up in the fourth quarter to enable software group Logica to recover some ground lost earlier, though sales and profits overall still came in flat last year. Full year 2010 revenue rose by 1% pro forma to £3.7bn, with fourth quarter sales up 4%. Profits were unchanged over the previous year at £272m, though the dividend rises by 27% to 4.2p.Outsourcing revenue rose 10% in 2010, with the decline on consulting and professional services revenue slowing to 5%, though it was a sharp improvement in financial services that drove the second half recovery. Going forward, a healthy pipeline in consulting and professional services, as well as significant outsourcing orders in the first quarter of 2011 coupled with 2010 outsourcing book to bill of 110%, have contributed to a good order backlog, "which underpins our confidence that revenue will again grow faster than the market," Logica said.The group added that £30m of restructuring costs will fall predominantly in thefirst half,"which means that first half operating margin will be behind lastyear. We expect around £15 to £20m of benefit from these changesbeginning in the second quarter," it added.