Phoenix IT Group to merge Servo and ICM businesses

Phoenix IT Group is to merge its Servo and ICM Continuous Business division from the beginning of April in a nod to the converging technologies they sell. The London Stock Exchange listed IT services house today reported a 13.4% rise in revenues to £138.4m for the first half of fiscal 2011 wi

Phoenix IT Group is to merge its Servo and ICM Continuous Business division from the beginning of April in a nod to the converging technologies they sell.

The London Stock Exchange listed IT services house today reported a 13.4% rise in revenues to £138.4m for the first half of fiscal 2011 with operating profit down marginally from £17.4m a year ago to £17.3m and net debt falling 18.5% to £63.5m.

"The group has started the year well with revenue momentum driven by acquisitions and new business wins in the previous financial year along with continued progress within the existing business," said chief executive Nick Robinson.

Turnover at Phoenix IT Services division grew 18% to £61m, as the "difficult" trading climate last financial year "started to show signs of easing" with a partial recovery in project and professional services sales and the start of three outsourcing deals.

The data centre services ICM business pushed up sales 9.1% to £28.4m as operating profits rose 3.8% to £6.9m and the Servo mid-market managed services operation increased revenues 11% to £49m but operating profits fell 15% to £3.5m.

Phoenix IT Group said it had seen robust growth in its data centre and hosted businesses, "with this demand for both availability and technological change, the lines have become blurred between what is a solution for 'normal operations and what is a disaster scenario.

"From 1 April 2011 therefore, a single end-user based organisation will be created by merging the ICM Continuous Business and Servo divisions together," the firm said, adding the businesses will operate out of 17 UK locations.

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