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Orders slide at Logica

Logica reports a 24 per cent decline in first-quarter orders
May 11, 2012

Shares in outsourcing giant Logica fell as the group reported a 24 per cent decline in its first-quarter order book. The group also reported flat revenue of £971m for the three months to 31 March, following years of progressive revenue growth, and management has reiterated its expectations for anaemic full-year sales growth of between plus and minus 2 per cent.

IC TIP: Sell at 73p

While performance in Benelux is improving, it remains challenging, with sales slipping 6 per cent and orders declining a further 33 per cent. That said, management says that restructuring plans remain on course.