Anglo-Dutch group LogicaCMG is aggressively hiring in the UK and Netherlands. Improving business conditions are filling out the groups order books.

Chief Executive Martin Read commented "The fact that we are making a really big priority of getting the headcount up again shows that things are improving and we can view the outlook with guarded optimism."

The UK with 42% of group sales was the engine for the growth. Benelux returned to growth in revenue and improved margins.

France was now profitable and Germany was expecting to be so in 2005. Germany has been undergoing a restructuring.

SMS messaging services sales were growing but progress had not been as strong as anticipated. The group was the only competitor left against EDS for an outsourcing deal with Electricidad do Portugal.

Half year turnover to June 30 was £809.2m. Pre-tax profit of £27.3m. The interim dividend was maintained at 2.3p