RNS Number : 2830B
Phoenix IT Group PLC
14 August 2008
Embargoed for 7.00am, Thursday 14 August 2008
Phoenix IT Group plc
Interim Management Statement
Phoenix IT Group plc ('the Group') announces its Interim Management Statement relating to the period from 1 April 2008 up to the latest practicable date prior to the publication of this statement, 13 August 2008. Financial data is for the Group's first quarter (1 April 2008 to 30 June 2008), unless otherwise stated.
The financial results for the Group as a whole for the first quarter are in line with the Board's expectations, with the Business Continuity and Servo divisions' performance being tempered by some softening in the market for Partner Services. Including the ICM acquisition (consolidated from 1 June 2007) Group revenues for the first quarter of the financial year were up 48% on the same period last year. On a pro forma basis assuming that ICM had been acquired on the first day of the comparative period, Group revenues increased by 13.4%.
As at 30 June 2008, the order book and annualised contract values had increased by 5.9% and 8.4%, respectively, as compared to 30 June 2007. Net debt (including finance leases) of £110.5m at 31 July was as forecast. This follows the planned capital expenditure arising from the completion of the recovery centre and the hosting/data centres at Farnborough and Aston and increased hosting/data centre capacity at the Birstall facility, together with non recurring expenditure arising from the Group's ongoing integration activities.
The integration programme is progressing as planned and is due to complete, as expected, in the Autumn of 2008.
Despite the worsening business environment and increasing inflationary pressures in the UK economy and in particular, increasing energy costs, the Group continues to have good forward visibility, is well positioned in each of its chosen markets and remains confident in its growth prospects.
The Company also announces that John Sussens, who joined the Board in 2004 as a Non-executive director, wishes to cut back on his commitments and accordingly is now stepping down as a director with immediate effect.
Peter Bertram, Chairman of Phoenix IT, said: "John has been a director since the flotation and we are extremely grateful to him for his very considerable contribution to the Group during that time and wish him well for the future".
The Board has appointed external search consultants and the search process is underway with a view to appointing additional Non-executive directors.
Enquiries
Phoenix IT
Peter Bertram 01604 669 791
Jeremy Stafford
David Simpson
Financial Dynamics
Harriet Keen 020 7831 3113
Haya Chelhot
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