Following several weeks of deterioration in its share price, Phoenix, the parent company of the UK business continuity specialist ICM Continuity Services, has issued a trading statement. This gives an update on trading for the six months to 30 September 2008.

Phoenix has seen strong revenue and profit growth in the period:

- Revenue growth in all divisions and Group revenues expected to be circa £126m (2007: £101.9m), up circa 24 percent.
- Profit from operations is expected to increase by circa 19 percent to circa £17m (2007: £14.3m).
- Profit before tax is expected to increase by circa 18 percent to circa £13m (2007: £11.0m).
- Group order book increased to £291m at 30 September 2008 compared to 30 September 2007 (£288.2m). ICM achieved an order book of over £100m for the first time at 31 August 2008.

According to the statement, ICM has grown strongly in the period and is anticipated to deliver revenues of circa £25.5m (2007: £17.5m), an increase of circa 46 percent. On a pro-forma basis assuming that ICM had been acquired on the first day of the comparative period, revenues are expected to increase by circa 21 percent.

ICM operating margins have continued to improve as the division has increased the utilisation of its syndicated and dedicated seats, together with its recently increased hosting capacity. The divisional operating profit margin is expected to increase to circa 25 percent for the first half (2007: 22.4 percent), achieving the Group's 2009 target of 25 percent margin for the division six months earlier than anticipated.

The utilisation rate for syndicated seats has increased to approximately 46 percent at the period end (31 March 2008: 42 percent).

Speaking to Continuity Central about the trading statement, Mike Osborne, managing director of ICM Continuity Services, said:

"Set against the backdrop of an uncertain economy and the integration activity of the merger, the results are a tremendous achievement and a great credit to the commitment of all our staff and the trust and confidence of our customers.

“The trading update is also evidence that the merger of ICM and NDR has created a real powerhouse in UK business continuity, underpinned by the scope and geographic coverage of our combined services and the kudos of winning the Business Continuity Service Provider of the Year Award for the last two years. We have, and continue to make, significant gains in market share as a result."

http://www.icm-continuity.co.uk

•Date: 9th October 2008• Region: UK •Type: Article •Topic: BC markets
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