Services firm Phoenix IT Group has warned that first quarter revenue fell five per cent compared to same period a year earlier.

The Northampton-based company, in an interim management statement, blamed a sharp decline in product sales and associated professional services in the mid-market division.

The group said that, despite a dividend payment in the first quarter, it had continued to reduce net debt. It currently stands at £84.7m, down £3.7m from 31 March this year.

Phoenix also blamed the recession for "adversely" affecting spend-shy customers.

"However, there has been an increase in sales opportunities in each division during the quarter which, together with the Group's good forward visibility from its order book and high levels of recurring revenues from a highly diversified customer base, give the Board increasing confidence in the outlook for the current year and beyond," it said. ®

Related stories

• Steady as she goes at Phoenix (28 September 2009)
• Phoenix glides serenely over recessionary ashes (1 June 2009)
• Phoenix predicts hitting end of year mark (7 April 2009)
• Phoenix remains on song despite flat Q3 sales (27 January 2009)
• Phoenix IT sucks up the recession (24 November 2008)