Confident Phoenix targets acquisitions
Northampton-based Phoenix IT Group has announced its intention to seek out “selective acquisitions” after posting stable results. The company also announced it has secured a five-year extension to its largest business continuity contract.
Worth £3.44m a year, the contract extension has contributed to a “promising” outlook for the company, with annual contract value of £203.2m at 30 June 2010, which compares with £177.0m a year earlier. This is slightly down from the £203.7m reported on 31 March 2010.
The company’s order book also dipped slightly to £349.3m from £353.0m in March, although it is still well ahead of the £268.5m reported in June 2009.
However, Phoenix also said two customers have decided to in-source their activities, resulting in the termination of two contracts with annual values of £9m and £3.5m in September and November 2010 respectively.
“Despite cutbacks in the public sector the overall trend of activity levels remains promising and in line with expectations,” the company said.
“We have had a solid start to the year and we continue to focus on attractive niche markets and organic growth, supported by customer led capital investment combined with selective acquisitions.”
In addition, Phoenix said the replacement of its financial director is “well advanced”.
