Phoenix glides serenely over recessionary ashes

Services group Phoenix reckons an early start on preparing for the downturn means that it will be able to weather the storm better than some of its competitors.

The firm made the hostage-to-fortune statement as it announced revenues of £253.2m for the year to March 31, up 9.7 per cent on last year. Pre-tax profits were £15.6m, compared to last year's £15.5m.

However, the firm emphasised "adjusted pretax profits" of £24.9m, up from £21.9m. These exclude non-recurring items and amortization of intangibles. The firm had presumably inherited a bunch of intangibles through its previous acquisitions, including ICM back in 2007.

Chief executive Nick Robinson said the firm had seen "momentum in operating margin growth being maintained into the second half, and in particular seeing an improved operating margin performance from Phoenix IT services."

He said the performance for the year was "solid despite a difficult backdrop".

He predicted that the current year would be "challenging", given the economic backdrop, but "we are confident we have taken the necessary steps... to be well prepared."

In its statement to shareholders, Phoenix added, "2009 is likely to be a tough year for some participants in the IT sector. However, having taken early action...the group is well positioned to be able to withstand the recession". ®