FD spotlight: Greater expectations
Consulting and IT giant Logica's sustained revenue growth and expansion in mobile telecommunications mean expectations for the company's year-end results, due to be announced next Wednesday, are positive.
In a bid to further enhance its presence in the growth area of mobile telecommunications, Logica joined forces in August with X.com, the web-based payments network, to develop and distribute the company’s PayPal payment system.
The system will provide mobile devices such as internet-enabled phones. The deal involves Logica incorporating X.com’s PayPal with its mobile commerce and e-commerce services.
And last month, Logica became website architect for the Lloyds TSB insurance online site providing a raft of expertise and experience in site development.
The site, which provides users with a range of quotations from a panel of the UK’s insurance companies, was designed and built by Logica together with a team from Lloyds.
On the back of this joint venture came a recruiting drive in the UK when the IT giant announced its intention to take on new staff in all business sectors over the next six months.
Logica recruited around 100 new employees at its offices in north Bristol following sustained growth and revenue increases in the South West.
Andrew Given, Logica’s group finance director since 1990, has presided over a 10 year spell that has seen joint ventures, rising staff numbers and increased profit margins.
At a recent performance update, Given painted an optimistic picture telling analysts and investors that the group was on target to meet profit expectations.
Given said that order intake for the year is expected to be robust and to surpass revenue growth significantly, with an expected book to bill ratio of around 1.2 to 1.