The Channel logo

News

By | Kelly Fiveash 31st July 2009 08:59

Phoenix warns of 5% rev fall in Q1

Ashen-faced, but fired up for the coming year

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.

For the three months ended 30 June, Phoenix clocked a 6.6 per cent orders decrease, compared to its 2008 Q1 with £268.5m on its books.

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. ®

alert Send corrections

Opinion

Privacy image

Frank Jennings

Two working parties, ministers galore... but data transfer law remains in limbo
EMC_Unity_bezel

Chris Evans

It does simplify the hardware setup, whatever it is
A microscopic view of the biometric shark skin. Pic: James Weaver

Chris Mellor

Do something and stop faffing about in the bush league

Kat Hall

International system in general needs greater transparency

Features

Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers