In an interim trading statement released to the City today, infrastructure services firm Phoenix IT has admitted it is seeing some price pressure in its partner division, "some of which is attributable to the Government's cost-cutting measures".
It added: "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 six months".
The group's order book fell by approximately £25m during the three months to the end of December, but annual contract values remained stable sequentially at £198.4m.
Phoenix said its sales and underlying profits came in in line with the board's expectations.
The firm said the ongoing integration of its ICM and Servo businesses continued apace, and it still anticipates the two units will be functioning as one company from the start of April.
Servo, said Phoenix, enjoyed a particularly strong third quarter, with good growth in hosting and other cloud services.
The company also announced the appointment of former financial trading house IG Group FD Steve Clutton, to the role of group finance director. Clutton will take up his post in March.