Phoenix It Share Discussion Threads

[s2lowner] 14/2/2011 17:25

Interim Management Statement
Date : 14/02/2011 @ 07:00
Source : UK Regulatory (RNS & others)
Stock : Phoenix It (PNX)
Quote : 248.0 -41.0 (-14.19%) @ 16:53
Quote Chart Trades Level2
Interim Management Statement
Share this article
TIDMPNX

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 GBP198.4 million (31 December 2009: GBP193.5 million) compared to GBP198.4 million at 30 September 2010 (30 September 2009: GBP178.7 million).

The Group order book has reduced from GBP360.7 million at 30 September 2010 (30 September 2009: GBP266.7 million) to GBP335 million at 31 December 2010 (31 December 2009: GBP323.9 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.

Outlook

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

Enquiries:


Phoenix Tel: [phone]
Peter Bertram Executive Chairman
Nick Robinson Chief Executive Officer


Financial Dynamics Tel: [phone]
3113
Charles Palmer
Haya Herbert-Burns
Nicola Biles

This information is provided by RNS

The company news service from the London Stock Exchange

END

IMSGGUUUPUPGGBW

Phoenix It (LSE:PNX)
Historical Stock Chart
1 Year : February 2010 to February 2011

Phoenix It (LSE:PNX)

[grigor] 21/1/2011 00:29

Bucked today's market

[qs99] 20/1/2011 11:48

sharp move....looks interesting...

[grigor] 03/12/2010 17:30

Good day, up 4.7%

[nellie1973] 30/11/2010 16:15

Tipped in press

[grigor] 30/11/2010 11:41

Few tips around.

I've noticed that most computer service companies are becoming more positive.

[grigor] 16/11/2010 19:55

Results on 29th November

[grigor] 05/11/2010 10:18

Gone Quiet - Interim results in a few weeks - PE 8, seems cheap - Should rise on good news

[milacs] 09/10/2010 08:59

Wonder what has prompted the share price recovery.

Take over possibilities?

M

[grigor] 13/9/2010 13:01

Would like to buy but not with the rapid share price fall

[milacs] 13/9/2010 12:21

Someone is clearly dumping this share.

M

[milacs] 25/8/2010 16:50

Glasshalful

I see XCH (113p) is even a better buy now!!

M

[glasshalfull] 19/8/2010 21:41

WJ & spooky - Wry smile when I found your posts this evening.

I also cast me eye over this last night and came to entirely the same conclusion as yourselves...IMS flagged up the same warning signals to me and I also concluded that it wasn't yet cheap enough for me on risk / reward basis.

Indeed, looked at a few technology plays yesterday and compared PNX with a couple of others that have fallen like a stone; XCH & MCRO and also SQS which is sitting at lows. SQS is the smallest but I believe offers the best value at current levels given the momentum they are generating with their managed services offering which appears to provide better revenue recognition and growth in offshore service. Also, with German GDP growth soaring I'm hopeful that SQS will benefit given it is their largest market. On the downside I'd imagine Euro weakness will have a knock on effect when translating results to GBP. I've a small holding.

XCH & MCRO also worthy of a look and punished fairly harshly given recent announcements. Still looking through data so intersted in your views if you've had the opportunity to assess.

Here was the basic market cap, revenue projections (as at 18/08)



SQS – SQS Software (@178p)

Market Cap £49m

Net Cash (last announcement) £1.2m

2010 PTP £7.71m / 19.83p EPS – PER 8.92 (Growth 70%)

2011 PTP £10.05m / 25.45p EPS - PER 6.96 (Growth 28%)

D/V Yield 3.3%



XCH – Xchanging (@129.5p)

Market Cap £309m

Net Cash £3.5m

2010 PTP £68m / 16.94p EPS – PER 7.96 (Growth 10%)

2011 PTP £76.31m / 18.89p EPS - PER 6.67 (Growth 11%)

D/V Yield 2.5%




PNX – Phoenix (@198p)

Market Cap £149m

Net Debt £68m

2011 PTP £32.74m / 30.37p EPS – PER 6.98 (Growth 12%)

2012 PTP £35.56m / 32.83p EPS - PER 6.4 (Growth 8%)

D/V Yield 3.5%




MCRO – Microfocus (@276p)

Market Cap £566m

Net Debt - (net cash positive by end 2011)

2011 PTP £110m / 39.76p EPS – PER 6.97 (Growth 8%)

2012 PTP £117m / 41.54p EPS - PER 6.67 (Growth 4%)

D/V Yield 5%


Regards,
GHF

[spooky] 19/8/2010 10:30

I've taken a close look at this recently,the conclusions i came to were :

1.It wasn't cheap enough for Private Equity or an MBO.

2.It could be a sector consolidation play but that in itself is never a great reason to buy.

3.It would be worth buying if there were signs of earnings momentum,before the trading update this clearly looked possible but the update has put this on hold.

I have decided to wait until it gets cheap enough to make 1. a possibility or for the earnings outlook to begin to be more unambiguously positive,the shares are now sitting on my watch list.

[wjccghcc] 19/8/2010 09:07

It's probably concerns about the contract terminations described in the IMS plus UK public sector exposure.

[milacs] 19/8/2010 09:05

Difficult to understand why the share price has fallen so far.

Could it be that the price has been taken down to this level so that a T/O bid of 300p looks good?

M

[grigor] 18/8/2010 23:02

Dropping like a stone

[milacs] 04/6/2010 19:37

Bought a few of these today.

Potential earnings next year 31p per share.

Average p/e rating of 13 gives potentially 400p share price 65% gain.

In addition always a possible T/O candidate.

M

[qs9] 26/3/2010 09:46

over sold?

[qs9] 14/1/2010 17:56

interesting step up,

[dalstal] 14/1/2010 17:27

chart suggests this is gonna have a go at the recent high

[perfect choice] 26/11/2009 08:40

They should do though, nice chart.