Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Logica Expects Higher Margins In 2012; Shares Rise - Update

Shares of British business and technology services firm Logica Plc (LOG.L) rose more than 6 percent on Wednesday morning, after the company said it expects operating margin for 2012 to be above 6.5 percent, despite an uncertain revenue outlook. The company posted a lower profit for full year 2011 hurt by restructuring and contract charges.

Looking ahead, Logica expects its Benelux business to return to profit in 2012, Swedish business to deliver an improved margin and its outsourcing business to be strongly competitive.

"We continue to be cautious about the economic outlook in our main markets and our guidance for 2012 remains unchanged, with revenue growth expected to be in the range of -2% to +2%," the company said.

For the full year 2011, profit before tax dropped to 32.7 million pounds from 192.9 million pounds in the previous year. On a per share basis, earnings were 1.7 pence, down from 9.4 pence per share reported a year ago.

Revenues for the year grew 3 percent to 3.92 billion pounds from 3.7 billion pounds in the preceding year. Underlying revenues increased 7 percent from last year.

Logica said its operating margin dropped 430 basis points to 1.4 percent.

Andy Green, CEO of the company said, "2011 was a more difficult year then we had expected. While our order book at £4.6 billion was strong and revenue was up 3%, restructuring and contract charges resulted in a lower adjusted operating profit."

Orders for the year improved 13 percent to 4.63 billion pounds, with a 23 percent rise in outsourcing orders.

In addition, the directors are proposing an unchanged final dividend of 2.3 pence per share, to eligible shareholders of record on April 13, 2012, payable on May 16. LOG.L is currently trading at 86.39 pence, up 4.99 pence or 6.12 percent, on a volume of 9.58 million shares, against a three-month average volume of 5.98 million shares.

Register
To receive FREE breaking news email alerts for Logica plc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved sharply lower over the course of the trading day on Wednesday, adding to the modest weakness seen in the two previous sessions. With the losses on the day, the major averages fell to their lowest closing levels in over a month. Democrats have climbed into the lead on a generic ballot, according to the results of a new CNN/ORC International poll, although the results may not be as positive for the party as they first appear. With spending on private and public construction both showing notable decreases, the Commerce Department released a report on Wednesday showing an unexpected drop in U.S. construction spending in the month of August.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.