Fullyearrevenuegrowthisnowsettobearound3%,withunderlyingprofitabilityintherangeof£240-250m。

InitstradingupdateatthestartofNovember,thecompanyhadindicatedrevenuegrowthfortheyearwasexpectedtobeabove3%。

Inastatement,thegroupsaid:RecentmarketforecastsnowpredictGDP[grossdomesticproduct]declinesof1%to2%inourEuropeanmarketsin2012。

Wearethereforeacceleratingtherestructuringthatwewouldotherwisehavespreadoverthenexttwoyears。

TheunwelcomeChristmassurpriseforalargechunkofLogicasworkforcewillleadtochargesinthecurrentfinancialyearofaround£80mrelatedtorestructuringofjobsand£13mrelatingtoproperty。

Thegoodnewsforshareholdersisthatthefirmanticipatesthatafinancialbenefitof£25m£35mwillflowthroughfromthesecondhalfof2012,withfullyearoperatingmarginexpectedtobeabove6。

5%in2012despitedifficultmarketconditions。

Thefullannualisedbenefitin2013willbeintheregionof£50m£60m,thegroupsaid。

Thisyear,Logicawillincuraone-offchargeof£39m,mostofwhichreflectsachangeinprovisionforexpectedlifetimecontractlossesasaresultofthelikelihoodoflowerexpectedrevenueonasmallnumberofvolume-dependentcontractswithbetweenfourtosixyearsstilltorun。

Asaresultoftheprogramme,thefirmexpectsthatitsBeneluxbusinesswillreturntoprofitin2012,itsSwedishbusinesswilldeliveranimprovedmargininthesameyear,andtheLogicaIMbusinesswillbestronglycompetitivegoingforward。

Thefirmintendstopayanunchangedfinaldividendfor2011of2。

3p,bringingthefullyeardividendto4。

4p,a5%increaseon2010。

Thegroupintendstomaintainitsdividendpolicyofa40%payoutin2012。

ChiefexecutiveofficerAndyGreensaid:Wedeeplyregrettheimpactjoblosseswillhaveonthepeopleaffectedinmanyofourbusinesses,butweareconfidentthatitisbestforourclients,peopleandshareholdersthatwefacesquarelyintothedifficulteconomicconditionsahead。

Thisdecisiveactionwillresultinsustainablemarginimprovementin2012,withthebenefitsstartingtoflowthroughinthesecondhalf。

Thesharesplungedtoanew52-weeklowontheannouncement。

NR

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