Logica savaged on mobiles caution

SOFTWARE and services group Logica was facing the prospect of demotion from the FTSE 100 today after a savage reaction to its half-year results wiped £343 million from its stock market value.

The group said it expected to meet revised annual targets for the year outlined in December in a veiled profit warning, and said orders were up 34% at £807 million.

Investors zeroed-in on modest growth prospects for its mobile phone software and the shares led the top 100 fallers, losing 76 1/2p or 16% to 416p.

Logica said its Japanese mobile software business, which contributed sales of £69.1 million in the six months to 31 December, was expected to grow more slowly as carriers deferred investment in new capacity.

Logica has yet to sign a newgeneration software deal but has 15 trials running with major carriers. Chief executive Martin Read said the threat from Nokia and Ericsson was overplayed.

Finance director Andrew Given becomes deputy chief executive ahead of his retirement at the end of this year and is replaced by Seamus Keating. Half-year pre-tax profit rose 6% to £61.6 million on sales up 19% to £600.2 million. Earnings before goodwill and exceptionals rose 21% to £78.5 million.