Phoenix IT Group managed to hold up revenues and profits despite contract changes at its biggest customer.

For the six months ended 30 September revenues were down to £54.4m from £54.8m for the same period last year.

Profit before tax was £9.2m compared to £8.9m for the same six months of 2005.

There are some delays in contracts at Phoenix IT Services but good growth in disaster recovery division NDR (Network Disaster Recovery). NDR made revenues of £9.2m, up from £7.3m, and signed its largest ever contract at £700,000.

Results were hit by changes to Phoenix's largest contract, desktop support for a government department, which meant reductions in the scope of work as well as more pressure on price.

The takeover of Servo Computer Services, announced earlier this month, will help Phoenix better target small and medium businesses.

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