Following a period of trading roughly in-line with the board's expecations, system integrator Phoenix IT Group has put a figure to the number of jobs it expects to cut as part of an ongoing restructuring programme, saying that over 300 back-office and delivery staff are heading for the exit.
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Phoenix said that charges of approximately £10m are now expected in the current financial year, with a cash cost of £3m in the remainder of fiscal 2012, and £5m in the 12 months to March 2013.
It plans to complete its ongoing restructure by the end of fiscal 2012, and said today that the process was "well advanced".
Phoenix said it will also cop an £8.1m impairment charge in the current financial year reflecting the write-off of the intangible asset value of the ICM brand, while a bad co-location contract that has cost it almost £900,000 over the past nine months has seen Phoenix admit it may have to make a provision of up to £5m for its remaining lifespan.
In an interim Q3 statement this morning, the firm revealed a 4% year-on-year decline in its order book value to £309m, although annual contract values rose by £1m to £195m.
Phoenix has set its sights on aggressive growth in the near future, and said today that following its reorganisation, its customer-facing units were "well-positioned in chosen markets with the benefit of a diversified customer base".
"The Group enjoys a high proportion of recurring revenue with good forward visibility and the Board remains confident in the Group's prospects," it added.
Examining the results today, TechMarketView's Phil Codling said: "Whether Phoenix can carve out growth in the current market remains to be seen, although if it can, such growth is likely to come from its direct managed services and hosting business, rather than the support services it delivers via large outsourcers."