Logica Q3 revenue in line

LONDON (ShareCast) - Shares in IT contracting company Logica (LSE: LOG.L - news) rose 1.5% after it said orders in the third quarter rose 6% while revenue for the period was in line with company expectations.

Revenue for the third quarter ended 30 September 2009 was down 4% and 3% lower to the year to date at £2,731m. UK revenue was up 7% to £193m in the third quarter while Benelux revenue was down 23% to £125m in the third quarter, reflecting continued weakness in financial services and IDT.

"The overall performance of our business in the third quarter has reflected similar trends to those in the second quarter," Logica said in a statement.

Commenting on today's announcement, CEO Andy Green said, "Logica continued to deliver well in the third quarter with our investments in client facing activity showing through in good orders in a tough climate. Our pipeline of Outsourcing opportunities remains strong, balanced by continued market weakness in Consulting and Professional Services."

Logica added that its cost saving programme for this year remains on track, with additional headcount reductions and property exits in the third quarter.

Cost reductions will deliver ongoing cost savings of £15m from 2010 at a one-off cost of around £20m in 2009.