Phoenix IT sees modest growth in full-year results

Revenue growth at IT services outfit Phoenix ITGroup has ticked into double figures, and pre-tax profit saw slight growth at the end of a turbulent year for the firm.

Revenue growth at IT services outfit Phoenix IT Group has ticked into double figures, and pre-tax profit saw slight growth at the end of a turbulent year for the firm.

Group revenues increased by 10.5 per cent to £271.6m, while pre-tax profit grew just 0.4 per cent to £25.3m, according to Phoenix's preliminary results statement, which hit the City this morning.

Phoenix has had a tought 12 months, contending with hefty restructuring costs from the merger of its ICM and Servo business units and a minor exodus of staff, at the same time as dealing with the impact of the coalition's public sector austerity drive.

However, the company said today that it was now on a much stronger platform for further growth, with the ICM - Servo end-user division merger wrapped as of 4 April, continued high demand for managed hosting services and new banking facilities giving it some extra financial leeway.

Chief executive Nick Robinson talked up the market shift towards cloud infrastructure and Phoenix's plans to take advantage of that trend.

"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," he said.

"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," he added.

With regard to the public sector, Robinson said the spending review had created a degree of uncertainty, but added that the overall trend for outsourcing remained promising, and the Partner Services Division was well placed to "deliver ... essential services at a lower cost."

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