REG - Maintel Holdings PLC - Trading Update

Maintel HoldingsAnnouncement

31/01/2025 07:00

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RNS Number : 3582V  Maintel Holdings PLC  31 January 2025

 

31 January 2025

 

Maintel Holdings Plc

("Maintel" or the "Company")

 

Trading Update

Significantly improved profitability and underlying organic growth, delivered
through continued transformation progress and strategy execution results

 

Maintel Holdings Plc, a leading provider of cloud, network and security
managed communications services, issues the following trading statement for
the financial year ended 31 December 2024, based on unaudited management
accounts.

The Company expects to report total revenue of £97.9 million (2023: £101.3
million). While lower than last year, this revenue performance represents
underlying organic growth of 8.2%, as FY 2023 was flattered by the unwinding
of the order book built up through the previous years that had been impacted
by the global semiconductor shortage.

Broadly in line with expectations, adjusted EBITDA* is expected to be £10.5
million, an increase of 15.3%, driven largely by significant new contracts
within its focus technology segments, consolidation of the organisational
streamlining carried out in 2023 and price increases.

The Company has made significant progress with its strategic pivot, from a
generalist to a highly skilled specialist across three high-growth technology
segments, with 79% of all new sales bookings being within the Company's three
core strategic pillars of Unified Communications & Collaboration, Customer
Experience and Security & Connectivity. During the year the Company
launched a brand new and enhanced customer portal, innovative new automation -
bringing great scalability to their SD-WAN delivery capabilities - and the new
Maintel Application Platform - delivering a new and innovative way for the
Company to rapidly develop apps and platform integrations that enhance
customers' solutions and differentiate both them and Maintel in the market.

In 2024 the Company contracted over £45m Total Contract Value (TCV) in new
business, from both existing and new customers, including significant
contracts with a leading housing and care provider, one of Europe's leading
credit management companies, one of the UK's largest insurance companies, one
of the UK's leading providers of affordable dental care, a Global IT and
business consulting services company and the Leeds Teaching Hospital NHS
Trust, one of the largest and busiest acute hospital trusts. All of these key
new contracts were secured within the Company's three focus pillars of
technology, have contract lengths of between two and five years and further
demonstrate Maintel's leading position across their key market focus
verticals.

A focus on quality of earnings, combined with the organisational streamlining
and a continued tight control of costs, continues to build a foundation for
sustainable future profitability. As a result, the Company delivered an
increase in EBITDA margins to 10.8% (2023: 9.0%).

Net Cash Debt** at the end of the period decreased by 8.2% to £16.7m (31
December 2023: £18.2m), reflecting the Company's continued strong cash
generation and commitment to deleveraging whilst balancing working capital,
transformation and investment requirements.

Although encouraging progress has been made across all aspects of the
business, and the Board is confident that the strategic pivot being
implemented well-positions the Company for the future, Maintel does face
headwinds in the coming year. These include an increase in employer related
costs, including the changes announced in the Government's Autumn Budget 2024.
A small number of significant customer contracts ended in 2024, as a result
revenue expectations for FY25 are now estimated to be between £100m-£102m.

The Company expects to publish its preliminary results for the financial year
ended 31 December 2024 in April 2025.

* Adjusted EBITDA - EBITDA adjusted for exceptional items (including one-off
restructuring costs) and share based payments.

**Net Cash Debt excludes IFRS16 lease liabilities.

 

Dan Davies, Interim CEO at Maintel, said

"I am delighted with the progress we have made in 2024 against our
transformation plan, strategically pivoting from a generalist to a highly
skilled specialist. The relaunch of our brand in November has successfully
framed our strategy for our people, our customers and our prospects, and we
remain focused on our aim of using technology to create customer experiences,
services and workplaces that inspire and empower people, and to continue
delivering Solid Solutions for a Dynamic World."

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.

For further information please contact:

 Maintel Holdings PLC                                      Tel: 0344 871 1122
 Dan Davies, Interim 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 is 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).

 

 

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