Software licensing VAR Phoenix Software has seen another healthy year of growth, with profits and sales both growing.
For the year ending 31 October 2015, the York-based Microsoft partner's profit after tax was £3.6m, up 5.9 per cent from the previous year. This was on sales of £114.6m which were up 24.7 per cent, according to documents filed on Companies House.
As well as this growth in sales, 2015 also saw an increase in headcount for Phoenix Software with it taking on nine staff last year to give it a total of 145.
Industry analyst Megabuyte said the results were positive for Phoenix Software but also show margins are becoming increasingly difficult to make in this market.
"Phoenix Software has had a solid year, seeing significant organic growth which has delivered its highest revenues to date," the analyst said.
"Moreover, it expects growth to continue and further progress to be made with its SAM managed services platform. However, like many of its peers, Phoenix must deal with increasing competition and pricing pressures which, over the last few years, have seen margins drop. Since 2012, Phoenix's EBITDA margins have dropped by a third."
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