Phoenix ME forecast revenue to rebound by 20%

London building services specialist Phoenix ME is predicting sales revenue will rebound by 21% this year as UK orders compensate for a post-Brexit lull in European data centre work.

Latest published accounts show turnover fell £50m to £140m in the year to 30 September 2021, knocking down pre-tax profit by a quarter to £5m.

As a result operating margin slipped from around 4% previously to 3.5%, while over the year average headcount fell by nearly 100 to 307 staff.

The current order book includes the Battersea Power Station redevelopment Phase 2 and 3 and Astra Zeneca in Cambridge along with further projects secured with blue chip clients including Google, Barclays and Virgin Media.

The parent group, Cityside Electrical Co, owned by CEO Lee Compton, sold its shareholding in MSC and Narcoe Electrical during the year distilling a loss of £1.5m.

Duncan McArthur, finance director, said the return to near £200m turnover would be helped by the data team picking up projects for clients such as CyrusOne, UBS and Virgin Media.

He added the firm remained cautious about the challenging inflationary market.

“We continued to be selective with our customer base and also maintain our policy to credit insure against insolvency.”

Cash at the year-end was slightly up at £23m from £20.5m previously.


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