Phoenix IT sounds note of caution

Phoenix IT has issued an interim management statement sounding a note of caution despite its contracts being in a healthier position compared to last year

Phoenix IT has issued a cautious trading statement despite the order book being in fairly health condition and the pipeline looking strong.

The managed services specialist updated investors this morning with a Q3 interim statement that sounded a note of caution and warned that EBITDA for the year that ends in March would be down by 10% on market expectations.

Despite that caution there are indications that the merger of the systems integrators and communications business at the start of the year and the managed service and hosting businesses being combined this month is already resonating with customers.

"The Group's annual contract value and order book at 31 December showed improvement on the position at September at £194.3m (September 2012; £187.7m) and £322.2m (September 2012; £284.6m) respectively," the firm stated.

"Service commenced on 6 December 2012 in respect of the major contract win we announced on 26 November 2012, and has been performing in line with expectations, however; we have seen some slippage in expected additions to this contract and on some other contracts with another systems integrator partner," it added.

Earlier this week the channel player set out to court 2e2 customers that were looking for alternative suppliers to help with their data services.

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