Phoenix IT eyes strategic cloud acquisitions
System integrator Phoenix IT has hinted it is considering further acquisitions to bulk up its cloud computing strategy as it released full-year prelims and recorded a slight dip in revenues but growth in underlying pre-tax profit after a challenging 12 months.
Group sales slipped 2.9% to £245.8m, but pre-tax profit was up 4.2% to £29.5m, with operating margins remaining stable.
Although chief executive Nick Robinson said the firm had seen a "tough trading environment" he added that selective investments, including the acquisitions of hosted business continuity software outfit Office Shadow and
, KCOM Group's network maintenance arm, had enabled Phoenix to "expand our service offering and broaden our customer base."
Robinson continued: "In addition, with the market for cloud computing developing fast we have continued to develop our service offering significantly over the past year."
In its results statement released Monday morning, Phoenix said that it remained focused primarily on "attractive niche markets" and mooted the possibility of acquisitions to bulk up its skills around cloud computing.
"The growth of the business will be primarily organic, but selective acquisitions may play an important role in future growth, specifically where they enable the Group to enter new niche markets and acquire new skills and service solutions that fit into the cloud computing offering.
"The Group has a proven ability in successfully acquiring and integrating businesses and we expect this to continue as opportunities present themselves," it said.