Flat half for Logica

Software group Logica is reviewing its UK public sector business as it expects new projects will be slow in the second half, though its guidance for the year is unchanged.Underlying interim profits dipped slightly to £125m from £127m in the half-year to June, on revenues down 1% at £1.87bn. Pre-tax profits, excluding one-offs, rose to £86m from £24m."Decision making on new (public sector) projects will continue to be slower in the UK through the second half of 2010. Alongside other suppliers, we are working closely with the new government to help determine the contribution we can make to short term savings in elements of our UK public sector business, which account for less than 10% of overall group revenue," Logica said. "We will be looking at solutions that reduce cost while changing the mix of how these front line services and back office savings can be delivered," it added.Offsetting this, Logica says market trends elsewhere are gradually improving. Demand from Financial Services and IDT clients picked up through the first half and underpins its view that revenues and adjusted operating margin for the full year will be at a similar level to 2009. Revenues last year were £3.6bn.The interim dividend rises to 1.9p from 1p.