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. ®