Logica Q1 Statement
Logica reiterates full year guidance with its first quarter results
At its Annual General Meeting being held today, Logica will comment on trading
for the first quarter of 2012. The following is the interim management
statement based on unaudited results for the three months ended 31 March 2012.
New orders totalling Â£1,057 million, 23% of 2011 record order book of Â£4.6
Revenue stable at 2011 level
Good progress on delivering our 2012 objectives
Commenting on today's announcement, Andy Green, CEO, said:
"This is a solid performance underpinning our full year guidance. We have made
good progress with clients in delivering against current contracts as well as
winning and implementing new business. Our restructuring actions are fully on
track and will help drive improvement in profitability in the second half."
Our full year revenue and margin guidance remains unchanged despite our
expectation of a subdued second quarter given the impact of elections in
several countries and a cautious economic outlook for our main markets. Full
year revenue growth is expected to be in the range of -2% to +2% and we expect
our full year 2012 operating margin to be above 6.5% even in tough market
We have made good progress with our restructuring programmes in the Benelux,
Sweden and Infrastructure Management (IM). We continue to expect to see the
savings of Â£25 to Â£35 million coming through, largely in the second half of the
We expect to deliver against our key 2012 objectives. Our Benelux business will
return to profit in 2012; our Swedish business will deliver an improved margin
and our IM business will be strongly competitive going forward.
Net debt/EBITDA at the end of 2012 is expected to be around 1.0x, after the
expected cash impact of the restructuring of between Â£60 to Â£70 million (the
bulk of which will be in the first half).
Restructuring programme fully on track
Full year guidance remains unchanged