Smart meter trials helped push Logica’s UK revenues up by 6% in its most recent financial quarter, ending 18 months of declining sales for the IT services provider in its home nation.
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UK sales reached £183 million during the three months ending 30 September 2011. Logica said the "key driver of growth" in the UK was the utilities sector, and made special mention of the contract it won with Shell to support the oil giant’s fuel card programme. "Public Sector revenue levels have now been stable for the last five quarters," it said.
Sales in the company’s other two largest markets, France and Northern / Central Europe, grew by 3% and 5% respectively to £198 million and £194 million. However, the continued contraction of its Benelux business, down 3% to £110 million, meant overall growth was just 2% to £914 million.
The company said that it had identified "pockets of softness’", ie weak demand, in Benelux and Sweden during September, and downgraded its margin forecast prediction as a result.
Logica UK’s performance is a vindication for outgoing UK CEO Craig Boundy, who is leaving the company to become UK managing director of credit rating agency Experian. Boundy will be replaced by Gary Bullard, a former IBM sales executive.
