Phoenix IT Group increased revenues by 32 per cent to £54.8m for the first six months of the year ended 30 September 2005.

Profits before tax for the period grew 25 per cent to £8.9m. The company is paying an interim dividend of 1.38p per share.

Nick Robinson, chief executive at Phoenix, said it had been an encouraging start to the year and the company had widened services it offered over the period, especially in disaster recovery through the acquistion of NDR.

Additionally the company said it was still talking to the Department of Work and Pensions about extending a contract due for renewal 31 December 2005. Phoenix is optimistic this will be extended for at least part of the services currently offered but that the final negotiations might reduce profitability. It warned there was no certainty but a further announcement would be made soon. ®