Phoenix It Share Discussion Threads

[tole] 04/5/2006 13:51

I see Shore Cap have a review out today on the Software and Computer services industry - noted a small mention here in reference to Phoenix's sector -

"The old stock market adage encourages investors to 'go away' in May. The advice has in the past resonated with Software and IT Services investors who have watched share prices drift back through May. However, we note that this May brings with it a goodly spread of news with the sector big guns such as Sage (interims: 9th May) and LogicaCMG (AGM: 17th May) supplemented with a steady diet of news from smaller companies: Dicom (Q3: 9th May), Microgen (AGM: 11th May), Aveva (finals: 18th May), Phoenix IT (finals: 18th May) and SurfControl (Q3: 3rd May). Consequently, given our general view that trading is basically encouraging, coupled with a reasonable sector valuation, we anticipate that share prices should benefit from a series of spikes in the month."


Shore Capital's Software and Computer Services industry taxonomy assesses
participating companies from a business model perspective, as follows:

Infrastructure Services: These companies offer post-implementation services such as maintenance, desktop-managed services, disaster recovery, facilities management and reselling. In our opinion, demand for infrastructure services will be driven by companies looking to cut costs by using third party infrastructure services. Companies in this category include Computacenter, ICM and Phoenix.

This sub-sector is trading on a PER of 17.1x for this year – the sector average
is 20.8x. In addition to the valuation we are attracted to this sub-sector's
annuity-based businesses such as Phoenix, where the order book helps to
reduce forecast risk.

[ged5] 27/4/2006 12:03

Good to see you're on the ball. Just a reminder of the trading statement:

"Trading Update



Phoenix IT Group plc ('Phoenix' or 'the Company'), the UK IT Services business,
is today providing an update on trading for the year ending 31 March 2006.



The business has had another successful year, with the continued development of
the core Phoenix business and the acquisition of NDR, which has performed
strongly since acquisition. We also saw the successful conclusion of contract
negotiations with EDS Global Field Services for the provision of desktop
maintenance, deskside support and implementation services for a major UK
Government Department resulting in revenues of around £8m in 2006.



The Board is therefore pleased to announce that the profits for the year will
slightly exceed the Board's previous expectations and the business is well
positioned for the forthcoming year.

[tole] 27/4/2006 11:46

Phoenix IT Group plc, the IT support services provider, will be announcing its
preliminary results for the year to 31 March 2006 on Thursday 18 May 2006.

[ged5] 06/4/2006 10:32

Looks like were moving up to the next level today.

[tole] 03/4/2006 09:13

Thanks Ged. Lets hope so :)

[ged5] 03/4/2006 08:45

Morning Tole,

11.95 on line (frequent users) otherwise 12.5
16.95 by phone

Expecting a push upwards myself.

[tole] 31/3/2006 16:30

Thanks Ged - might take another look (its the research element they offer that I like the sound of - you cant tell me what their charges are quickly can you? appreciate not wanting to faf about myself) ta.

Got to think that the share price will push on from here imo - an inexpensive, highly cash-generative stock.

[tole] 31/3/2006 15:43

Thanks Ged, thought as much. (wondered if they were published free anywhere)
Off topic - have you always liked TDW (did once think of changing accounts to them - worth it?)

Phoenix profits better than expected

Phoenix IT Group said it had enjoyed "another successful year" in a trading statement issued yesterday.
The services firm said it expects profits to slightly exceed expectations.
Meanwhile, finance director David Taylor is leaving Phoenix as of today. He will be replaced by David Simpson, who was previously group financial controller.


TechMARK movers: Phoenix IT, BTG shine, Kingston slumps
Fri 31 Mar 2006

LONDON (SHARECAST) - IT Services firm Phoenix IT pushed ahead today after it said profits for the year will slightly exceed its previous expectations.
The group said the business was well positioned for the forthcoming year with the continued development of its core Phoenix business and the acquisition of NDR, which has performed strongly since acquisition.

[tole] 31/3/2006 14:25

Those were the latest figures for Altium that I have. Though they do mention that there figures represent a floor and that further contract wins will lead them to upgrade those numbers...

Nice chart by the way Ged - where you getting all those figs from?

[ged5] 31/3/2006 12:33

Here are the forecasts



2006
2007



Pre tax
eps
dps
pre tax
eps
dps


UBS
24-11-05
NEU1
18.76
21.36
4.10
18.84
21.42
4.10


Investec Securities
11-07-05
BUY
18.66
21.10
4.00
19.50
22.05
4.20


Shore Capital
20-01-06
BUY
20.00
23.20
3.90
20.40
23.80
4.30


Panmure Gordon
22-03-06
BUY
20.55
23.58
3.88
21.80
25.56
4.20


Altium Securities 
03-03-06
BUY
17.7
19.6
4.00
18.2
20.20
4.4


Numis Securities Ltd 
21-09-05
HOL


If you've got the latest figures for Altium I'll put them in.There were no figures given by Numis.

[tole] 31/3/2006 10:39

Altium re-iterating their BUY rating today on PNX.

Edit. Some nice chunky 50k buys rolling in now

[m5artin] 31/3/2006 10:08

Hi, Nice trading statement, the IT sector is picking up lately, Mr Sellwood will be bringing valuable experience to the company.

[tole] 31/3/2006 09:10

Thanks GED - nope hadnt seen that thanks.
Been buying myself the last few days as like you mentioned share price definately back in buying territory.

I like what Altium have to say on this one - highlights the fact that PNX trades at a circa 20% discount to its peers which it believes undeserved - and argues that with PNX's recurring revenues, exceptional margins and partnership business model would actually justify a premium to the wider IT services sector...

Can see this one as they mention get re-rated pretty soon imo.

[ged5] 31/3/2006 08:44

Did you see this bit of news earlier this month?

"Managed services specialist Phoenix IT has signed a partnership agreement with Cisco Silver Partner Connectology.

As a result of the agreement, VAR Connectology will add 24x7 infrastructure support from Phoenix to its own services portfolio."

[ged5] 31/3/2006 08:40

Not used to company here.

I did warn that we were in buying territory. Good company with good prospects.

"Phoenix IT sees FY profits slightly ahead of previous expectations

Phoenix IT Group PLC said it anticipates full year profits will be slightly ahead of previous expectations."

Better than the usual in-line statements. I've only seen RCG recently come out with anything much better and that was back in January. Few and far between companies like this.

[tole] 31/3/2006 08:40

Well this is what Altium said back at the beginning of March -

'Having enjoyed a strong recovery bounce following teh favourable resolution of the DWP contract in mid-january, Phoenix shares gave back many of those gains in February. This recent capitlation is unwarranted, in our opinion. It is our view that, with the DWP negotiations behind it, Phoenix should now be free to focus on winning new business. We also believe that teh recent share price correction is only the first stage in a deserved re-rating that implies significant further upside'

Buy rating and Initial Target Price of 360p

[tole] 31/3/2006 08:11

Well a bit of news today :)


Phoenix IT sees FY profits slightly ahead of previous expectations

Phoenix IT Group PLC said it anticipates full year profits will be slightly ahead of previous expectations.

The UK IT services business said that in the year to end-March its core business continued to develop and its NDR acquisition performed strongly. During the year the group also saw the successful conclusion of contract negotiations with EDS Global Field Services, resulting in revenues of around 8 mln stg in 2006.

The board said the business is therefore well positioned for the forthcoming year.

The company also announced today that David Simpson will succeed David Taylor as finance director from April 1.
The board also welcomed Brian Sellwood as a non-executive director. Chief executive Nick Robinson commented: "We are pleased with our performance for the year to 31 March 2006 and, with the company continuing to deliver on its strategy, believe we are well placed for the future."

Phoenix said its preliminary results for the year will be announced in late May.

[ged5] 22/3/2006 21:15

Well no news and the price begins to drift. Starting to watch this again. Looks like it's coming back into buying territory.

[ged5] 31/1/2006 11:20

Yep I was right on this occasion. Yet another good day. Nice buy at £3.40. Plenty of activity today.

[ged5] 30/1/2006 15:45

Strange! Bid is 326 offer 327.5 yet the chart above shows a drop to 313.

EDIT Apparently the ADVFN charts aren't working. Another good day and probably more to come.

[ged5] 24/1/2006 19:19

Good day today. Still some catching up to do.

[ged5] 16/1/2006 16:52

Missed this one from last week

1132 GMT [Dow Jones] Panmure Gordon ups Phoenix IT's (PNX.LN) estimates, retains buy retaing. Estimates the order book has grown organically by 15% in the year to date. EPS forecasts, adjusted for share option charges and goodwill, are now 24.8p, +4% for '06 and 26.5p, +11% for, '07. Says business remains "inexpensive and highly cash generative." Shares trade -3.1% at 285p. (JEM)