Phoenix IT signs for £90m credit facility
Northampton’s Phoenix IT has signed a new £90m, four-year revolving credit facility and has renewed its £10m overdraft for a further 12 months. The syndicate of lending banks includes Barclays, HSBC, The Royal Bank of Scotland and Yorkshire Bank.
Phoenix says the new facility will be used to refinance its existing £86m facility and will materially increase the effective financial resources available to the group.
For the year to 31 March, revenues at Phoenix IT fell 2.9 per cent to £245.8m. Pre-tax profit rose from £15.6m to £25.2m after Phoenix took a series of charges a year ago. Underlying pre-tax profit rose 4.2 per cent to £29.5m.
Earlier this month the company said it is continuing to see opportunities in outsourcing as customers seek to reduce their cost base. Phoenix has received notice from two of its customers that they have decided to in-source some of the activities currently provided by the company.
It is expected that these contracts, with annual contract values of £9m and £3.5m, will terminate in September and November 2010 respectively. Phoenix’s board said it does not anticipate that this will have a material impact on the outcome for the full year to March 2011.
