SMS lead prompts stock plunge for Logica

Despite the good news, the company's shares dropped over 5.5 per cent to £15.54 on sustained trading after hitting as low as £14.50.

Logica now claims that over half of the world's SMS messages are carried on its software. Its mobile business in general grew by 74 per cent to £131.7m, with SMS software growing at 93 per cent and margins improving from 15.1 per cent to 19.5 per cent.

Pre-tax profits were up 52 per cent to £64.8m on revenue up 25 per cent to £505m. The company took £604m worth of orders in the half year to 31 December 2000. Overall margins were up to 11.8 per cent from 10.2 per cent and profit per employee is up 18 per cent.

The company's two black spots were the US and France. In the US, sales fell four per cent to £28.6m. In France, the company lost £300,000 on slightly reduced revenues.

Growth in telecoms and energy and utilities was strong, but industry, distribution and transport was sluggish with recovery and 11 per cent growth in financial services.

The company expects to appoint a new CEO shortly and has made changes in its senior management.