Bloomberg News

Logica Drops Most in Six Weeks on Lowered Full-Year Forecast

November 02, 2011

(Updates with closing share price.)

Nov. 2 (Bloomberg) -- Logica Plc, an Anglo-Dutch computer services provider, fell the most in six weeks after it posted third-quarter sales which were lower than analysts’ estimates and revised its full-year forecast downwards.

Logica declined 7.3 percent, the most since Sept. 22, to close at 83 pence in London trading. This gives the London-based company a market value of 1.34 billion pounds ($2.14 billion).

Third-quarter sales rose 2 percent to 914 million pounds, the company said in a PR Newswire statement today. That missed the 929.4 million-pounds average of five analysts’ estimates compiled by Bloomberg.

Full-year revenue growth will exceed 3 percent, the statement said. In August, the company said full-year revenue will increase at a “similar level” to first-half sales, which grew at 5 percent on a pro forma basis.

Slowdown in third-quarter earnings is “worse than we expected,” Paul Morland, a London-based analyst at Peel Hunt wrote in an e-mailed note to clients today.

Logica said its full-year margin will be 6.5 percent to 7 percent, as “pockets of softness” became “apparent in September.”

--Editors: Chris Peterson, Peter Branton

To contact the reporter on this story: Namitha Jagadeesh at njagadeesh@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net


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