Phoenix warns on lower EBITDA

Phoenix has updated the market on its Q3 performance, and has warned that EBITDA for the full year (to end March 2013) “will be around 10% below market expectations”. While both the contract value and order book have improved, the company has seen “some slippage in expected additions” to both its new IBM contract (see Phoenix signs £40m+ deskside support deal) and some other SI partner contracts.

Conditions continue to be tough for Phoenix following a “disappointing” H1 (see Phoenix H1 hit by ‘double whammy’). At the time, Executive Chairman Peter Bertram argued that the disruption caused by the reorganisation of business affected performance levels. The company is still working on improving its structure, and in January merged its Systems Integrators and Communications business units. Today it announced that it is also merging its Managed Service and Hosting business units.