PHOENIX IT, the company that provides emergency offices for businesses during man-made or natural disasters, expects half year pre-tax profit to increase by about 18 per cent to £13m.
Phoenix, which took over Birstall-based ICM last year, provides systems management and business continuity services.
The group said it has seen revenue growth in all its divisions in the six months to September 30 and it expects sales to be around
£126m.
The group said it has seen a softening in demand for partner services in the second quarter and new business wins have been smaller in size with continuing margin pressure.
However its mid-market division has performed well and achieved the group's target of a double-digit percentage operating profit margin.
The business continuity unit also saw its operating margin improve to around 25 per cent, six months earlier than anticipated.
The group's shares closed the day down 2.7 per cent, a fall of 4p to 145p on the trading update.
Following the purchase of ICM, Phoenix is the third biggest disaster recovery company behind IBM and SunGard.
The disaster recovery market is expected to grow by about seven per cent as more companies take out insurance against fire, floods, power failure and terrorism.
Phoenix's order book increased to £291m as of September 30 compared to £288.2m last year.
ICM's business continuity operation achieved an order book of over £100m for the first time ever and the group said its integration is now complete.
The group will announce its interim results for the six months to September 30 on November 24.
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