Logica CEO remains confident, ups stake

Logica's chief executive officer has raised his stake in the computing firm on the same day that shares sank over 7%.

Alan Green, who took up his position on the board in January 2008, bought 100,000 shares in the group at a price of 81.95p a share for a total of £81,950.

The move coincides with news that the company reported weakening margins and revenues in the third quarter, news which sent the share price falling more than 8%.

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Logica has consequently lowered its forecast for full year operating margin to between 6.5% and 7%.

Speaking about the news, 55-year-old Green, who spent many years at the helm of BT, said: "We've seen slower demand with some of our clients where spending is just a bit lower than we might have expected."

The firm, which has lost more than 38% of its share price in the past year, blamed the drop on spending cuts on IT services in the Benelux region, and now expects revenue growth of as little as 3%.

The news received mixed reviews from brokers, with Panmure Gordon saying it is pleased with the interim management statement, while Singer Capital Markets have put its buy rating under review.

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