Phoenix keen to reshape debt profile

Phoenix Group, the zombie fund consolidation company which has attracted the interest of private equity, exceeded all of its 2011 financial targets, but a renegotiation of its debt profile looks a high priority, as finance costs tipped it into the red.

Phoenix Group, the zombie fund consolidation company which has attracted the interest of private equity, exceeded all of its 2011 financial targets, but a renegotiation of its debt profile looks a high priority, as finance costs tipped it into the red.

Net income in 2011 declined to £6,490m from £7,543m in 2010, while profit before finance costs and tax dipped to £247m from £280m the year before. Those finance costs are not inconsiderable, however, clocking in at £251m in 2011 and £269m in 2010, which meant the company posted a loss before tax of £4m, versus a profit of £11m the year before. The group has £2.7bn of bank debt.

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