Anglo-Dutch services company Logica (formerly LogicaCMG) is the latest victim of the credit crunch as it has revealed less than stellar results for its UK business, warning that some financial services clients had cut spending.

The UK, which represents nearly a quarter of the company's global business, saw an eight percent fall in sales to £662.5m in 2007, while operating profits were down 60 percent at £30.5 million.

The news was not entirely bad, however. Total revenues for 2007 rose three percent to £3.07 billion, but pre-tax profits fell by 28 percent to £84.1 million.

This is a testing time for new CEO Andy Green, who joined from BT in January, but it also gives him the chance to lead from the front and set out a new strategy in the Spring.

That said, Green has issued a cautious outlook for the year, saying revenue growth will be similar to 2007's three percent rate.

Green needs to steady investors' nerves and outline a positive strategy for his company. As reported last month on sourcingfocus, he recently announced the establishment of a new outsourcing services division under former acting CEO Jim McKenna, but McKenna will leave the company this year.

Logica is planning a new centre in India, and Green is at pains to play down talk of redundancies or disposals of any parts of its business, despite reports to the contrary at the end of last year. “Logica has always been acquiring and disposing of businesses every quarter. But I don't think people should expect the nice headlines of huge divestments or job cuts,” he said.