Logica raises sales growth target

By Paul Sandle

LONDON (Reuters) - IT group Logica (LOG.L) upped its full-year sales growth target as robust IT spending in the public sector helped first-half revenues rise 6 percent, boosting its shares by more than 10 percent on Thursday.

Chief Executive Andy Green, who joined from BT (BT.L) in January, said the group was seeing a slowdown in financial services and in some consumer-driven sectors, but other sectors were holding up.

"Government spending in IT is robust," he told reporters. "Energy and utilities also seem to have tons of money."

Logica, which announced a $219 million restructuring in April, said revenue rose to 1.77 billion pounds in the six months to end-June, beating analyst forecasts for 1.67 billion pounds.

Adjusted operating profit also beat a company-supplied consensus of 115 million pounds with a 16 percent rise to 118 million pounds.

Logica shares, which had risen more than 10 percent in the past month, added a further 11.8 percent to a 12-weeek high at 125.75 pence at 10:50 a.m.

"Green has delivered a solid set of results, demonstrating that the robust Q1 demand trends continued into Q2 and putting Logica on course to deliver against guidance for the full year," Seymour Pierce analyst Derek Brown said.

"The broad industry spread is clearly proving beneficial against the worsening economic backdrop."