[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 22 May 2007, 16:51 GMT 17:51 UK
Logica profit warning hits shares
A row of policemen
Logica CMG processes the Metropolitan Police payroll
Shares in computer services LogicaCMG have fallen 9% on a disappointing trading update.

The Anglo-Dutch group said overall sales for the year would suffer because of problems dogging its commercial business in the UK.

These included a the end of a contract, and unexpected costs of 10-15m in relation to a UK project overrun.

But strong sales in other European markets including Sweden and France pared losses at the struggling UK arm.

"We are disappointed that our performance in our UK commercial businesses, including cost overruns on a long term contract, has overshadowed strong growth in our other key territories," said LogicaCMG chief executive Dr Martin Read.

We are taking actions to address the issues in the UK
Martin Read, Logica chief executive

"We are taking actions to address the issues in the UK," he added.

The IT services company said it expected to sell its telecoms products business, which provides software for text messaging on mobile phone, to an investment consortium before the end of its first fiscal half.

About 130m of the proceeds are due to be returned to shareholders via a share buyback programme later in the year.

Computer firms agree to merge
05 Nov 02 |  Business
Computer firms set to merge
08 Oct 02 |  Business
Logica shares fall on profit drop
04 Sep 02 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific