PNX Phoenix It

 

TIDMPNX 
 
RNS Number : 6123W 
Phoenix IT Group PLC 
30 July 2009 
 

 
31 July 2009 
 
Phoenix IT Group plc 
Interim Management Statement 
 
Phoenix IT Group plc ("the Group") releases its Interim Management 
Statement relating to the period from 1 April 2009 up to the latest practicable 
date prior to the publication of this statement, 30 July 2009. Financial data is 
for the Group's first quarter (1 April 2009 to 30 June 2009), unless otherwise 
stated. 
The financial results for the Group for the first quarter are in line with the 
Board's expectations. 
Through a combination of the ongoing focus on the provision of higher margin 
services and continuing cost control, the margins in both the Partner and the 
Business Continuity divisions continued to improve in the quarter. However, 
excluding the effect of the sale of the Group's French business, on a 
like-for-like basis revenue for the first quarter of the financial year 
decreased by 5% compared to the corresponding period last year reflecting the 
impact of the recession over the last 12 months. The decline was most marked in 
the Mid-market division, particularly in product sales and associated 
professional services. Overall the Group achieved an operating profit for the 
period in line with the same period last year as a result of the higher Group 
operating margin. 
In the preliminary results statement of 1 June 2009, it was explained that in 
today's challenging market there are fewer large scale multi-million pound, 
multi-year contract opportunities in the Partner business' market. 
Opportunities and contracts in this business currently tend to be for projects 
of a smaller size.  As at 30 June 2009 this is evidenced in the Group order book 
at GBP268.5m, a decrease of 6.6% compared to 30 June 2008 and a decline of 6.4% 
from 31 March 2009, and in the annualised contract values which decreased by 
2.2% compared to 30 June 2008, with a decline of 1.6% since 31 March 2009 to 
GBP177.0m. 
The Group has continued to reduce net debt, even after a dividend payment of 
GBP1.7m in the first quarter. At 30 June 2009 net debt stood at GBP84.7m, a 
reduction of GBP3.7m from 31 March 2009, and the Board remains confident that 
net debt will continue to be reduced substantially during the remainder of the 
financial year. 
The recession continues to adversely impact the time new customers are taking to 
reach purchasing decisions and also increases pricing pressure in each of the 
markets the Group serves. However, there has been an increase in sales 
opportunities in each division during the quarter which, together with the 
Group's good forward visibility from its order book and high levels of recurring 
revenues from a highly diversified customer base, give the Board increasing 
confidence in the outlook for the current year and beyond. 
Nick Robinson, Chief Executive of Phoenix IT Group plc, commented: 
"We have had a solid start to the year and our performance is on track to meet 
the Board's expectations for the year. Activity levels are high and our pipeline 
continues to grow as a result of increasing opportunities over recent weeks." 
 
 
Enquiries: 
+--------------------------------------+---------------------+ 
| Phoenix IT                           |                     | 
+--------------------------------------+---------------------+ 
| Peter Bertram - Executive Chairman   | 01604 769000        | 
+--------------------------------------+---------------------+ 
| Nick Robinson - Chief Executive      |                     | 
| Officer                              |                     | 
+--------------------------------------+---------------------+ 
| David Simpson - Chief Financial      |                     | 
| Officer                              |                     | 
+--------------------------------------+---------------------+ 
|                                      |                     | 
+--------------------------------------+---------------------+ 
| Financial Dynamics                                         | 
+------------------------------------------------------------+ 
| Charlie Palmer                       | 020 7831 3113       | 
+--------------------------------------+---------------------+ 
| Nicola Biles                         |                     | 
+--------------------------------------+---------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IMSWUUGPMUPBGQU 
 

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