Following February’s rather muted trading update (see Phoenix flying flat), infrastructure support services group, Phoenix, appears to have closed the year (to 31st March) on a calm note, with ‘in line’ revenues and (adjusted) profits. The merger of its two mid-market businesses (see Phoenix to become a business of two halves (again)!) is done and dusted, costing a goodly part of £3.5m. No specific comment on the previously shrinking order book, so we must assume that the FY just started will remain subdued.
There is some interplay between Phoenix’s now two operating divisions, as there was between the two mid-market units, but it’s hard to see ‘cross-selling’ giving a material boost to the top line this year. Indeed, Phoenix largely remains hostage to its partners’ fortunes, i.e. the swathe of top-tier SIs and outsourcers for whom it provides (mainly) white-label support services. Like so many partners, we suspect Phoenix’s are quicker to share the pain than the gain – and we rather expect more of the former than the latter again this year.