Logica full-year results meet expectations

But firm could face further slowdown owing to the election

Logica could face further client slowdown due to the election

IT services firm Logica met market expectations with its financial results for 2009 but warned of a sluggish recovery this year.

Operating profit reached £272m for the year, while revenue was £3.7bn. This was a decrease of three per cent year on year, in line with analysts’ expectations.

The decrease was blamed on slow client spending as belts tightened owing to the recession, and the company expects 2010 revenue to follow the same pattern as 2009.

Chief executive Andy Green was quoted as saying the company could face a lull in UK public sector work – one of the core areas of business for Logica – following the general election.

"In the short term there could be a hiatus, but in the medium term all European countries will need to invest in automation to get spending down," Green told the Financial Times.

"For most of our clients, life hasn't returned to the sunny uplands of 2006 and 2007. There will be slow improvements," he said.