Just to clarify the Phoenix acquisition, 75% was acquired and...

Just to clarify the Phoenix acquisition, 75% was acquired and settled on August 31 2015. Hence there was a contribution from Phoenix back in the 1H2016 result. The remaining 25% was acquired in early February 2016.

Nonetheless you have accurately identified that this is a weak result Madamswer, but I don't think it comes from the core business - despite the fact it has struggled over recent years due to the commoditisation of IT services. The core business actually grew in terms of revenue by 4.6% in FY2016, and today's presentation actually highlights further organic growth in 1H2017. Symplicit appears to be performing well so the revenue shortfall in 1H2017 likely comes from a poor performance from Phoenix itself vs pcp.

Confirming this to me is the wind back of consultants in 1H2017 by 10% (after the surge in FY2016 due to the acquisitions). Most laid off were contractors, which I believe are used largely by Phoenix. Also, we saw revenue from the IC & T sector fall back in 1H2017 after its contribution surged in FY2016 due to the acquisitions. Another signal that Phoenix has underperformed. I'm not sure if the remaining earn out of $3,1m relates to Phoenix, but if it does, maybe we are seeing some revenue and earnings being shifted out of Phoenix and towards the DWS primary division to minimise the earn out liability? Who knows!

On a positive note, utilisation remains high and admin costs have been reigned in as a result of fewer admin staff running a larger organisation. However, overall I surmise that the cyclicality of earnings that has characterised this company in recent years has not been overcome by the two acquisitions.