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Phoenix IT Group PLC (PNX)

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Monday 14 February, 2011

Phoenix IT Group PLC

Interim Management Statement

RNS Number : 1430B
Phoenix IT Group PLC
14 February 2011

14 February 2011


Phoenix IT Group plc

Interim Management Statement and Appointment of Finance Director



Phoenix IT Group plc releases its IMS relating to the period from 1 October 2010 up to the latest practicable date prior to the publication of this statement 14 February 2011. Financial Data is for the Group's third quarter (1 October 2010 to 31 December 2010) unless otherwise stated.


Financial Position


Revenues and Underlying profit before tax for the third quarter were in line with the Board's expectations. Servo had a strong third quarter and we continue to see good growth in both hosting and other "cloud" services.


The Group's annual contract value ("ACV") has remained stable. At 31 December 2010 group ACV was £198.4 million (31 December 2009:  £193.5 million) compared to £198.4 million at 30 September 2010 (30 September 2009:  £178.7 million).


The Group order book has reduced from £360.7 million at 30 September 2010 (30 September 2009: £266.7 million) to £335 million at 31 December 2010 (31 December 2009: £323.9 million).


ICM / Servo Integration


As previously announced we are in the process of combining our two end user businesses which will be functioning as one company from 1 April 2011. We will enter the new financial year with a more powerful mid market focused organisation with a wide breadth of services with a particular focus on managed hosting and other cloud services. As a result of this reorganisation we will incur some one-off restructuring charges in the final quarter of the current year.




The outlook for the current year remains unchanged.


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 6 months. Overall, the board's expectations for the group next year are similar to those for the current year.


Appointment of Finance Director


We are delighted to announce the appointment of Steve Clutton as Group Finance Director who will be joining the company on 1 March 2011. Steve was most recently Group Finance Director of IG Group Holdings plc between October 2006 and August 2010. Previously he has served as Chief Financial Officer at the UK Retail Banking division of Barclays Bank, Interoute Telecommunications Limited and British Telecom's international business. A chartered accountant, Steve has also held senior roles within corporate finance at BZW and BT. He will bring extensive financial and commercial experience from operating within a range of companies.


There is no other information required to be disclosed in accordance by LR 9.6.13










Tel: +44 (0)1604 769000

Peter Bertram

Executive Chairman

Nick Robinson

Chief Executive Officer



Financial Dynamics

Tel: +44 (0)20 7831 3113

Charles Palmer

Haya Herbert-Burns

Nicola Biles


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