4087 days ago
Steve Moore and I worked together at t1ps.com from the day he left University. He is a very talented young analyst and a man of utter principle which is why he quit t1ps. He is now working with my on my Nifty Fifty website but also writing off his own bat and I am keen to support that. Apart from anything else he talks a lot of sense. As such I bring you an article he has published on tech stock Phoenix IT, a company I know a bit about. Steve writes…
Phoenix IT Group (PNX), a fully-listed IT services company to UK enterprises, updated last week (13th February 2013) that it “currently believes the Group’s EBITDA for the year to 31 March 2013 will be around 10% below market expectations, but is encouraged by an improving order book and pipeline”. Having traded at more than 230p in 2012 and commenced 2013 at 184p, the shares presently trade at 157p, capitalising the company at £118.3 million. In light of the ‘improving order book and pipeline’, the following reviews whether there is value on offer here…
The update revealed that the group’s annual contract value (£194.3 million) and order book (£322.2 million) at the end of calendar 2012 were both improved on the positions at the end of the prior quarter (£187.7 million and £284.6 million respectively). However, it added that some slippage in current work has been experienced and that the company “remains cautious about its short term financial performance”.
