There's trouble at Phoenix IT Group - the services provider has recorded losses of more than £60m, been forced to take a massive hit from accounting errors and is laying off staff. The results of accounting errors are in and the firm has taken a post-tax knock of £17.3m, forcing it to restate multiple year results after finding …
If your Not TUPE...
Your gonna be Goop!
The company I used to work for has our servers hosted with Phoenix's hosting services (we signed up with them before Phoenix brought them out. The thing is that the company I used to work for are credit insurance brokers and when I noticed that article on el reg about them getting rid of 300 staff and going into major cost cutting measures... I talked to one of our staff members who does the credit checks... Pheonix were not looking in good shape back then and so we put them on our monitor list to make sure that our websites would be safe. I think that they will be watching Phoenix a bit closer now.
It'll all turn out well in the end
Lovely, an accounting mis-statement, write downs and difficult trading conditions.
Lets hope that they don't have a sybdicated senior debt facility with RBS, otherwise well, they might end up finding that the loan covenants are breached, the cash flow dries up, and well, anything could happen. Like RBS (hypothetically) forcing them into administration, Deloittes (hypothetically) being asked to forensically examine the accounts, and (hypothetically)the assets being sold off in a neat pre-pack to a ready buyer, who mysteriously finds that the business is viable, particularly with some friendly support from a Scottish bank.
Oooh! They do bank with RBS. Well, none of the above could possibly happen, could it?
Encountering some very choppy waters and the boat's leaking...!
Ex Phoenix lacky
Phoenix - You can't polish a turd (but you can roll it in glitter)!
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