The Channel logo


By | John Oates 14th February 2011 11:33

Markets whack Phoenix shares

Despite steady trading

Phoenix IT Group shares took a dive this morning after the company told markets this morning that business was on track, but it still has some worries about public sector cutbacks.

Sales and profits from the end of last year, from 1 October, were in line with expectations. The Servo business it bought in 2006 had a decent third quarter and it saw good growth in hosted and cloud services. Phoenix IT Group shares in London were down just over 12 per cent on the news.

The statement said: "We continue to face price pressure in the partner division, some of which is attributable to the Government's cost cutting measures.

"The pipeline for larger contracts in the partner business has some good early prospects, however it is unlikely that any of these will be commenced in the next six months."

The integration of ICM/Servo is going well, and the two firms should be working as one by 1 April 2011.

The board of directors expects trading next year to be similar to this year.

Go here for Phoenix's full trading statement. ®

comment icon Read 1 comment on this article alert Send corrections


shutterstock_183801788_container ship

Chris Mellor

The SAN growth glory days are well and truly over, so where next?

Tom Whipp

Insurance industry insider tells all
Crypto fingers
Kids on wall. Pic: US Army/Capt Emily Skolozynski


Better to play nicely than try to muscle in on territory


Michael Dell. Pic by Joi Ito
Cool Texas dude is just your average billionaire
The Seeing Eye by Valerie Everett, Flickr, CC2.0
Follow the money – or, at least, our projections
Boats storm girl photo via Nikolina Mrakovic
The puppets from Team America: World Police gather at a bar for drinks.