Logica profits up 85%

Logica saw profits surge 85% in the first half and said its cost saving programme will ensure it maintains margin for the year Lower exceptional items and finance costs helped pre-tax profit for the six months to rise to £24m against £13m before. Group revenue was in line with guidance at £1,876 million, up 6% on a reported basis but down 2% on a proforma basis.The results were helped by Outsourcing Services, where orders were up 18% and in the UK, where revenues rose 7%. The group has implemented plans to deliver the 2010 cost savings objective of £110m."While there is still uncertainty in the consulting and professional services market, we have taken swift action in more difficult geographies to protect margins. We expect these actions and the strength of our outsourcing business to allow us to maintain margin in line with last year," said the group. In line with the decision announced in December 2008, the proposed interim dividend is 1.0p (2008: 2.4p). The group said it is expected the dividend will be maintained at a level of around 3p for 2009, with a plan to return to progressive increases in the dividend thereafter.