Public sector props up LogicaCMG

Revenues were £809.2m, a 5.1% fall compared to the same period last year, due to a 'higher proportion than expected' number of orders with extended delivery schedules.

The company's performance in the UK was strong, particularly in government and outsourcing sectors, while its overall IT services revenues were down due to a decline in its Germany operation.

The UK operation was worth £336.1m in revenues, a 4.6% growth on H1 2003. Profit before tax stood at £39.2m compared with £60.6m for the previous six months and £38.9m for the same period last year.

Pricing has remained 'stable' in its key territories, it stated, and the pace of recovery has remained gradual and the competitive environment 'tough'.

Revenue decline in the financial service's sector has continued to slow, with 'issues of regulation and compliance' beginning to weigh heavily and 'thereby generate IT investment'. This has led to LogicaCMG's procurement moving from local deals up to global contracts, allowing the firm to bid for larger contracts, 'albeit with longer lead times'.