Troubled firm still cautious over financial outlook
Phoenix IT Group struck a deal with a global IT service provider, expecting to generate £40 million in revenue for the troubled company.
The deal with the unnamed service provider is expected to generate significant revenues over a five year period, with Phoenix tasked with providing deskside engineering support for the global firm’s UK clients.
Phoenix will be using its own staff to provide the contracted services, with an additional 180 transferred as part of the deal.
Phoenix’s PR representatives informed ChannelBiz UK that further details of the deal are not available, and that the global service provider involved in the deal has no short term plans to publicly reveal its identity.
Despite the contract, Phoenix says it remains “very cautious” about its trading performance.
Financial results are expected on 29 November, and the firm will give an update into the investigations surrounding alleged accounting irregularities.
“The Board is very cautious in relation to its current trading performance, but is encouraged about the company’s medium and longer term prospects in respect of the above mentioned contract and other positive developments,” Phoenix said in a statement.
Independent accountants have been appointed to investigate the “mis-statement” of key figures in its financial results. This is expected to cause a loss of around £14 million the company has claimed.
Following the investigations CEO David Courtley left the firm, being replaced by former Azlan boss Peter Bertram.