UPDATE 1-Logica Q1 rev up 3.6 pct, sticks to outlook

(Adds details, share price, analyst comment)

LONDON, May 14 (Reuters) - British IT services firm Logica Plc (LOG.L: Quote, Profile, Research) said on Wednesday first-quarter revenue rose 3.6 percent and reiterated its full-year outlook, saying overall market activity seems to be resilient.

Logica, which announced a 110 million pound ($219 million) restructuring programme last month, said revenue rose to 856 million pounds ($1.67 billion) on a pro forma constant-currency basis.

The company reiterated it expects 2008 revenue growth of around 3 percent at constant currency and margins similar to the underlying 7.6 percent achieved in 2007.

Chief Executive Andy Green, who was appointed last autumn, said: "We continue to see a few examples of slower spending in an uncertain market environment but overall market activity levels appear resilient and underpin our confidence in our 2008 guidance."

At 0746 GMT, Logica shares were up 3.8 percent at 130.25 pence.

Landsbanki analyst Michael Donnelly said the 40 percent surge in the shares from a year low point in March has been driven by a gathering enthusiasm for new CEO Green, and for his strategy that puts outsourcing at the heart of growing the European businesses. Donnelly has a "buy" rating on the stock.

First-quarter revenue growth in mainland Europe, which was particularly strong in Germany, contrasted with flat revenue in the UK. Here strong growth in revenue from the public sector was upset by a fall in revenue from the commercial sector.

Revenue for the first four months to the end of April, which smoothes out the effect of an early Easter, grew 6 percent, Logica said.

Logica, which said it has started talks with unions and works councils over around 1,300 potential job losses, plans to give an update on progress of its restructuring at its half-year results on Aug. 14. (Reporting by Erica Billingham; editing by Sue Thomas)