IT services group Logica has reported an 11 per cent increase in revenue for its most recent fiscal quarter, but acknowledged that the rise was influenced by currency fluctuations, as market conditions remain "difficult".

Logica's revenue for the three months ending 31 March 2009 was £954m, compared to £856m in the year-ago quarter. On a constant currency basis revenue remained flat.

"I am pleased that we maintained revenue for the first quarter at last year’s level. Order performance remained strong, boosted by outsourcing wins with TeliaSonera and the UK’s National Policing Improvement Agency. We are executing against our Programme for Growth, which we expect will deliver margins at least in line with 2008 despite difficult market conditions,” said Andy Green, Logica's chief executive, in a statement.

Revenues in the UK bucked the overall trend, rising four per cent to £185m.

Logica said it expected customers to increase their use of its outsourcing services in the coming months, but that spending on consulting and professional services would dip.

Logica's Programme for Growth aims to reduce its operating costs, as well as strengthen its sales capability. The company reduced its headcount by 125 between the end of December 2008 and the end of March 2009. It has also announced a recruitment freeze in its major European operations.