Logica FY profits plunge, sees flat sales in 2012

Logica reported EPS in 2011 down 82 percent to 1.7 pence, as the IT services company suffered from a slowdown in consumer and business spending. While annual revenues were up 3 percent to GBP 3.9 billion, in line with the company's outlook, operating profit dropped to GBP 55 million from GBP 211 million in 2010, hurt by one-time charges for restructuring and contract charges. The order book was worth GBP 4.6 billion at year-end. Logica said the revenue outlook remains uncertain and it will continue with the restructuring announced in December. The company targets a return to profit at its Benelux business this year, improved margins in Sweden and a strengthened outsourcing business. Logica reiterated its target for a full-year adjusted operating margin of over 6.5 percent in 2012, versus 2.9 percent in 2011, and said it expects revenues in a range of down 2 percent to up 2 percent. Logica increased its annual dividend 5 percent to 4.4 pence per share and said it will continue to pay out around 40 percent of net profit.