Phoenix rises with revenue hike
IT services company Phoenix has grown revenues by 10.5 per cent to £271.6m, it was revealed this morning. The Northampton-based company said all three of its divisions had generated organic growth in what it called a "solid financial year".
Phoenix revealed its preliminary year-end results for 31 March this morning. Alongside revenue growth, underlying pre-tax profit was up 8.7 per cent to £32m compared to the company's 2010 results.
Underlying profit from operations increased 4.6 per cent to £36m.
Nick Robinson, chief executive of Phoenix, said: "The group has had a solid year financially with both revenues and underlying profit before tax increasing year on year. All three divisions delivered organic growth in both revenue and underlying profit from operations, and the group continues to be cash generative."
Profit before tax increased £100,000 on its 2010 year-end results to £25.3m.
However, profits from operations decreased by £500,000 to £29.6m.
Over the 12-month period, Phoenix said its three large outsource contracts won during 2010 have been integrated.
The company's ICM and Servo divisions merged on 4 April 2011. Phoenix said the benefits from the merger were "coming through as expected".
Robinson said: "We have completed the integration of ICM and Servo into a single end-user business and following the investments made during the year in increasing hosting capacity and capability we are well positioned to take advantage of the market shift towards cloud computing in both of our end-user and partner services divisions.
"The breadth of services that we can offer via the merged end-user division leads us to anticipate further growth in managed hosting and cloud services into the current financial year. Whilst growth predictions are more cautious in respect of the partner services division, the group has a diverse customer base and retains good visibility of forward revenues giving a strong platform on which to build for the future."
