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%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
Top Director Buys
F&C Asset Management (FCAM)
Director name: Mr Edward Bramson
Amount purchased: 200,000 @ 73.37p
Value: £146,740
Charles Taylor Consulting (CTR)
Director name: Mr David Gideon Marock
Amount purchased: 30,000 @ 128.00p
Value: £38,400
Air Partner (AIP)
Director name: Mr Andrew Wood
Amount purchased: 10,000 @ 364.00p
Value: £36,400
Driver Group (DRV)
Director name: Mr Alan McClue
Amount purchased: 50,000 @ 25.00p
Value: £12,500
NR
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
