Logica sales beat forecast with 2% fall

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The Anglo-Dutch company said clients were more upbeat and demand was growing for its outsourcing services.

Logica, which forecasts flat revenues for the year, said the UK and France were performing better than the Benelux region and Sweden.

The update sent shares in the group up 0.7% to 137p in early trading.

"We saw some positive trends in the first quarter with particularly strong demand in France and continued revenue growth in the UK balancing the continuing difficult market conditions in the Benelux and to a lesser extent, Sweden," said Andy Green, Logica's chief executive.

Chief finance officer Seamus Keating said the growth had been driven by a strong outsourcing performance, up 11%, while the consulting and professional services unit was down 8%, which was better than previous quarters.