REG - Maintel Holdings PLC - Trading Update

Maintel HoldingsAnnouncement

31/01/2022 07:30

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RNS Number : 1156A  Maintel Holdings PLC  31 January 2022

 

 

Maintel Holdings plc

Trading update for the 12-month period ended 31 December 2021

 

Maintel back to organic growth, despite challenging market conditions.

 

Maintel Holdings plc (the "Company", the "Group" or "Maintel") is pleased to
announce the following trading update for the financial year ending 31
December 2021.

 

Group revenue and adjusted* EBITDA for the year are expected to be in line
with market expectations at approximately £104m and £9.6m respectively
(calculated on a like for like organic basis **). The Group has grown annual
revenue by 1% and adjusted EBITDA by 9%, despite the combined effects of the
national lockdown in early 2021, the wave of Omicron in the latter part of the
year, and supply chain issues surrounding semi-conductors which negatively
impacted the timing of revenue recognition at the period end by over £2m.

 

Our cash generation in the period remained strong and resulted in period end
net debt of £19.4m, outperforming market expectations, allowing the business
to deliver a notable reduction from the closing net debt position of £22.3m
as at 31 December 2020 and £25.7m at 31 December 2019, evidencing our strong
cash and cost management practices.

 

Maintel's transition to a cloud and managed services business continues, with
the Group exceeding 130,000 contracted cloud seats at the period end, up 30%
from 31 December 2020.  Inevitable delays in Public Sector tenders and the
continued Covid-19 pandemic impacted the Group's ambition to finish moderately
above this figure.  The Group's cloud portfolio continues to be enhanced with
both Public and Private cloud solutions, which ensures the Group is well
positioned to meet changing market requirements during 2022.

 

The Group's search for a Chief Financial Officer has good momentum and we hope
to announce an appointment in the near future.

 

Commenting on the Group's performance, Chief Executive Officer, Ioan MacRae,
said:

"I am pleased with the Group's performance in 2021 despite the numerous
external challenges we have faced through the period. To achieve, on a like
for like basis, organic growth in both revenue and adjusted EBITDA, whilst
managing macro difficulties as detailed above, is testament to the product
offerings we now have and the admirable performance from the Maintel team.

Our business transformation continues with a 30% growth in cloud seats,
significant SD-WAN wins and continued debt reduction by over £6m in the last
2 years.

The new portfolio and service offerings, which were introduced for the start
of 2021 have proved very successful and contributed to the Group securing some
major customer contracts, worth over £50m over multiple years.

The foundation of the business has now been set and I look forward to
continued growth over the coming years as we introduce new capabilities around
CPaaS, Cyber Security, Microsoft and IOT".

 

 * Adjusted EBITDA is earnings before interest, tax, depreciation and
amortisation, adjusted for share-based payments and exceptional costs.

** Taking account of the sale of the Company's document management business in
April 2021 and the Agilitas stock sale in December 2020

 

For further information please contact:

 Ioan MacRae, Chief Executive Officer                                     0344 871 1122

 Dan Davies, Chief Technology Officer

 finnCap (Nomad and Broker)
 Jonny Franklin-Adams / Emily Watts / Kate Bannatyne (Corporate Finance)  020 7220 0500

 Richard Chambers / Sunila de Silva (Corporate Broking)

 Oakley Advisory Limited

 Christian Maher                                                          020 7766 6900

 

This announcement contains inside information.

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