Logica, the Anglo-Dutch computer services group which last month announced a £110 million restructuring programme, reported rising revenues in the first quarter of the year.

Revenue for the first quarter rose from £768 million to £856 million for the year to March 31, 2008. The group said today that it forecasts revenue growth of about 3 per cent and profit margins similar to last year's 7.6 per cent in 2008. Shares in the group gained 4p at 129.5p.

The company added that sales, excluding acquisitions, in the first four months of the year, which smooths out the effects of an early Easter, rose 6 per cent from a year earlier.

Logica said a few customers slowed spending "but overall market activity levels appear resilient and underpin our confidence in our 2008 guidance."

"We remain alert to changes in customer sentit and are carefully monitoring utilisation levels and recruitment," said Logica in a statement.

Logica said late last month that it is to cut 1,300 jobs, including 500 in Britain, and double its offshore operations as part of a £110 million plan to revive the business.

The company said it would shed 3 per cent of its overall workforce while increasing its offshore staff from 3,450 at present to 8,000 by the end of next year.

Andy Green, the chief executive of Logica, began a review of Logica's businesses in January to increase revenues and boost Logica's shares, which lost 37 per cent last year.

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