REG - Maintel Holdings PLC - Trading Update and Notice of Results

Maintel HoldingsAnnouncement

Tue 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250729:nRSc8790Sa&default-theme=true

RNS Number : 8790S  Maintel Holdings PLC  29 July 2025

29 July 2025

Maintel Holdings plc

("Maintel", the "Company" or the "Group")

Trading Update and Notice of Results

Maintel Holdings Plc, a leading provider of cloud communications, connectivity
and security managed communications services, issues the following trading
update for the six months ended 30 June 2025, based on unaudited accounts.

Financial performance

Total revenue was flat compared to the first half of 2024 at £46.5 million
(H1 2024: £46.6 million), due to a small number of churned contracts as
flagged in January's trading update, which offset a 20% growth in Project
Revenue and the benefits from price increases implemented in the prior year.

Adjusted EBITDA was £3.4 million (H1 2024: £4.8 million), mainly due to
increased employer costs, as also flagged in January's trading update.
Additional cost in the period was also driven by continued investment in IT
systems and marketing spend in H1 to maximise the associated benefits during
H2 2025 and beyond.  H1 2024 also benefited from a single, large contract win
with a Housing Association, which represented £1.4 million of H1 Revenue.

Net debt was £18.0 million (June 2024: £15.6 million), as a result of
temporary working capital variances, consistent with the Group's latent growth
momentum and its negative working capital structure.

The Group continues to actively focus on cost control and maximising
operational efficiencies. Planned cost mitigation activities - including
reduced property related costs, continued transformation of the organisational
model, as well as a comprehensive and ongoing procurement review - started to
be executed in the first half and are expected to deliver £1.0 million -
£1.5 million of cost savings in FY 2025 and annualised cost savings of £2.0
million - £2.5 million from FY 2026 onwards.

Strategic progress & pipeline

Maintel continues to make good progress in executing its new strategy as part
of its organisational and strategic transformation, which began in 2023. To
date, the key leading indicators of the turnaround progress have all been
positive.

Routes to market have been expanded to include physical events, digital
campaigns, advertising, vendor leads, industry and technology forum
membership, and independent consultants. The Company has also been building
brand recognition and resonance, demonstrated by three recent award wins for
its rebrand and repositioning, launched in November 2024, and the successful
growth of the marketing-generated pipeline.

As part of its transformation programme, the Company has now fully established
its new customer acquisition sales team, which is crucial to Maintel's ability
to grow its customer base and has already generated a significant pipeline and
closed several early deals.

During the first half, the Company closed over £20 million in Total Contract
Value (TCV) of new business sales bookings from both existing and new
customers. This included an internationally distributed on-premise Unified
Communications managed service for a significant central government contract
through a large global service provider; a Hybrid Wide Area Networking upgrade
for one of the UK's leading providers of affordable dental care; a new private
cloud Unified Communications managed service for South London and Maudsley NHS
Trust, and a Wi-Fi refresh project for a large retailer.

In total, the sales pipeline is the largest it has been for many years,
climbing to £75 million First Year Value* at the end of June (H1 2024: £50
million). Overall, win rates have continued to improve while the Company is
also securing higher-quality earnings from new customer contracts,
particularly in its strategic growth markets of Financial Services, Retail,
Healthcare and Social Housing. These new business contracts with improved
margins will however take some time to flow through to the overall performance
of the business, as they blend with the large existing contract base.

Excellent progress has also been made across both employee and customer
experience scores, execution of the Company's customer retention strategy, and
in continuing to build and strengthen our leadership team.

*First Year Value = project revenue + the 1(st) 12 month's recurring revenue

Outlook

The Board remains focused on Maintel's long-term growth strategy and believes
that, following the Company's transformation from a generalist managed service
provider to a highly skilled specialist, the business is making good progress.
Such turnaround programmes take time, however the positive leading indicators,
outlined in this update, demonstrate great progress and the Board is confident
that these leading indicators will convert into improved financial results and
increased shareholder value.

As previously indicated, the Board continues to anticipate that the Group's
financial performance will be weighted towards the second half of FY 2025 and
remains cautiously optimistic of meeting market expectations for the current
year.

The Company expects to announce its unaudited interim results for the six
months ended 30 June 2025 on Monday 18 September 2025.

 

 

For further information, please contact:

 

 Maintel Holdings PLC                                      Tel: 0344 871 1122
 Dan Davies, Chief Executive Officer

 Gab Pirona, Chief Financial Officer

 Cavendish (Nomad and Broker)                              Tel: 020 7220 0500
 Jonny Franklin-Adams / Hamish Waller (Corporate Finance)

 Sunila de Silva (Corporate Broking)

 Hudson Sandler (Financial PR)                             Tel: 020 7796 4133
 Wendy Baker / Nick Moore                                  m (mailto:maintel@hudsonsandler.com) aintel@hudsonsandler.com
                                                           (mailto:maintel@hudsonsandler.com)

 

Notes to editors

 

Maintel Holdings Plc ("Maintel") is a leading provider of cloud
communications, security and connectivity managed communications services to
the UK public and private sectors. Its services aim to help its clients create
customer experiences, services and workplaces that inspire and empower people,
with a focus across three strategic pillars of technology:

 

·      Unified Communications and Collaboration - Making customers'
people more effective, efficient, and collaborative with UC&C technology.
The core focus of this pillar is the high growth Unified Communications as a
Service (UCaaS) market segment.

 

·      Customer Experience - Helping customers to acquire, delight and
retain their customers using customer experience technology. The core focus of
this pillar is the high growth Contact Centre as a Service (CCaaS) market
segment.

 

·      Security & Connectivity - Securely connecting customers'
people, partners and guests to their cloud platforms, applications, and data
with secure connectivity, and protecting their business from cyber threat. The
core focus of this pillar are the high growth Software Defined Wide Area
Networking (SD-WAN) and Security Service Edge (SSE) segments.

 

Maintel combines technology from its strategic, global technology vendor and
carrier partners, with its own Intellectual Property, deployed from and
managed by its own platforms, to provide seamless solutions that its customers
can consume without the need for the internal skillset required to design,
deploy and manage the technology themselves.

 

Maintel serves the whole market, with a particular focus on key verticals of
Financial Services, Retail, Public Healthcare, Local Government, Higher
Education, Social Housing and Utilities. Its core market constitutes
organisations with between 250 and 10,000 employees in the private, public and
not-for-profit sectors with headquarters in the UK.

 

The Company was founded in 1991 and it listed on London's AIM market in 2004
(AIM: MAI).

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBRGDRGGDDGUI