LogicaCMG blames a contracting commercial sector market

LogicaCMG's UK figures down

But disappointing first quarter offset by continued strong growth in Europe

Written by Computing staff

Computing, 22 May 2007

Supplier LogicaCMG has updated its trading predictions because of disappointing UK market performance.

Revenue for the first quarter of the year was down 4.1 per cent to £174.6m for the UK, despite a 10 per cent growth in public sector business, said the company's trading statement issued today.

The firm blames a contracting commercial sector market and cost overruns on a long-term contract which are expected to cost it between £10m and £15m.

Growth in Europe offset the UK figures, leaving overall revenues up 4.3 per cent to £767.8m, said the firm. But earlier predictions were of a five per cent rise.

LogicaCMG is anticipating improved revenues in the second half of the year thanks to order intake ahead of revenue for the first half.