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Logica keeps government contracts

Tue, 28th Sep 2010 08:43

Logica will continue work on all of its existing UK government contracts after the software company agreed a number of efficiency savings as part of the coalition's spending review.Despite the Memorandum of Understanding signed with the government and subsequent savings demanded by Ministers, Logica says these were anticipated in its forecasts, so expectations flagged at last month's interim results remain unchanged.Revenue and adjusted operating margin for the full year will be at a similar level to 2009, the group said in August. Revenue last year was £3.6bn. "We are pleased to have reached an agreement with Francis Maude (Minister for the Cabinet Office) and his team in a speedy and straightforward fashion," Logica's UK business chief Craig Boundy said Tuesday.UK public sector revenue accounted for around 12% of group turnover in 2009.Last month, Logica reported a slight dip in underlying interim profits to £125m from £127m on revenue down 1% at £1.87bn. Pre-tax profit, excluding one-offs, rose to £86m from £24m.