Phoenix IT Group has issued its preliminary results for the year ended 31st March 2015. Operational highlights included:
- Focus on profit, not revenue, has returned stability to the Group’s financial position;
- Underlying EBITDA of £27.1m (2014: £30.5m) in line with initial expectations;
- Strong control on non-recurring items has produced a profit before tax of £8.8m (2014: loss of £29.2m);
- Net debt £7.1m lower at £49.0m;
- Order Book and Annual Contract Value lower as transition to higher-margin, lower revenue contracts continues.
Commenting on the results, Steve Vaughan, chief executive of Phoenix, said:
“It has taken no small amount of energy, but the first phase of our three year plan for Phoenix is complete. Over the past twelve months a significant amount of work has been done to stabilise our financial performance, revitalise our go-to-market approach and bring greater rigour to the way in which we work, serve and partner with our customers. Those efforts are just the first part of our plan for the Group, but it is gratifying to see them translate into our results. It is also encouraging to start to see some customers, some new, some long-held, respond well to the improvements we are making to our service portfolio.
“Following the offer for the Group from Daisy Intermediate Holdings, announced on May 27th, the whole Board has taken the view that this represents the best option for Phoenix in the future. The price offered recognises the progress made in the first phase of the strategy, and the potential of future phases. A combined Daisy/Phoenix group will be well placed to exploit the converging IT and telecoms requirements of mid-market customers.”
Following the preliminary results announcement Phoenix also published details of a scheme document in relation to the Daisy offer, containing, amongst other things, the full terms and conditions of the scheme, an explanatory statement, an expected timetable of principal events and details of the actions to be taken by Phoenix Shareholders. More details of this can be found here.