After deep and meaningful conversations with cabinet office minister, Francis Maude, IT services group Logica has agreed "a number of efficiency savings" with the government that will allow it to continue to work on all of its current projects.
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Nearly two-thirds of Logica's UK work comes from the public sector, or about 12 per cent of the group's £1.87bn first half revenue to 30 June. But this almost certainly means a 'haircut' on margins, given the lack of guidance over price details going forward. Panmure is expecting 2010 EPS of 11.7p, but has trimmed its 2011 estimate from 12.8p to 12.6p.
When: 05/03/10
Price: 119p
Performance to date: -6%
