IT services firm Logica posted a better-than-expected 8 per cent rise in adjusted operating profit for the first half today, helped by cost savings, and said it would maintain operating margins for the year.
The company, which is listed in London and Amsterdam, reported adjusted operating profit of £127 million pounds for the six months to the end of June on revenue of £1.88 billion, up 6 per cent due to growth in outsourcing services.
Basic adjusted earnings per share (EPS) came in at 5.5 pence against 5.4 pence a year earlier, while pretax profit was £24 million, up from £13 million, it said.
The company said there was still uncertainty in the consulting and professional services markets, but it had taken action in poorly performing countries.
"We expect these actions and the strength of our outsourcing business to allow us to maintain margin in line with last year," chief executive Andy Green said in a statement.
Shares in the company, which have risen 25 per cent in the last week after better-than-expected quarterly earnings from peers Capgemini and Fujitsu, closed at a 10-month high of £1.09 on Wednesday.
Reuters