Shares in Logica closed 15% lower after the maker of text messaging software reported a fall in annual profit and warned that tough trading conditions would continue.

The company said it saw no upturn in sight in depressed global technology markets.

"It's quite a difficult environment to forecast. Most organisations have been very cautious about capital investment," said chief executive Martin Read.

Earlier this year, Logica joined fellow former tech darling Arm Holdings in being booted out of the FTSE 100 index of leading UK companies because of a falling share price.

Job cuts

Logica shares were worth not far off �30 at their peak in 2000 but now trade at less than �2 apiece.

In May, the company said tough competition and sluggish demand meant it would have to cut 700 jobs.

In Wednesday's statement, Logica said 450 of the jobs would go in the July-September period.

"If we do need to do more of cost control, we will. We hope not to," said Mr Read.

Logica's annual profit before tax, goodwill amortisation, restructuring charges and one-off items came in at �116m ($181m), down from �156m the year before.

Turnover was 3% lower at �1.1bn.