REG - Maintel Holdings PLC - Interim Results
Today 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:20250918:nRSR7760Za&default-theme=true
RNS Number : 7760Z Maintel Holdings PLC 18 September 2025
18 September 2025
Maintel Holdings Plc
("Maintel", the "Company" or the "Group")
Interim results for the six months ended 30 June 2025
Resilient performance, as projects and pipeline progress build momentum for
future growth
Maintel Holdings Plc, a leading provider of cloud and managed communication
services, announces its unaudited interim results for the six months to 30
June 2025.
Key Financial Information
Six months ended Six months ended %
change
2025 2024
Group revenue (£'m) 46.5 46.6 (0.2)%
Gross profit (£'m) 14.0 14.7 (4.8)%
Adjusted EBITDA( 1 ) (£'m) 3.4 4.8 (29.2)%
Loss before tax (£'m) (0.8) (0.3) (166.7)%
Adjusted profit before tax ( 4 ) (£'m) 1.8 3.2 (43.8)%
Basic (loss)/earnings per share (p) (5.5) 0.5 (1,200.0)%
Adjusted earnings per share ( 2 ) (p) 1.2 11.0 (89.1)%
Net cash / (debt)( 3 ) (£'m) (18.0) (15.6) 15.4%
Financial Highlights
· Group revenue was in line with expectations at £46.5m, (H1 2024:
£46.6m), with recurring revenue representing 74.3% of total revenue (H1 2024:
78.7%).
· Total revenue was relatively flat compared with the first half
of 2024 due to a small number of churned contracts as previously flagged,
which offset a 20% growth in revenue from projects and the benefit from price
increases.
· Gross profit decreased to £14.0m (H1 2024: £14.7m) with gross
margin decreasing to 30.1% (H1 2024: 31.6%), driven by in-bound inflationary
pressure and a change in revenue mix, as H1 2024 benefited from higher margin
upfront project revenue from a large contract won with a housing association.
· Adjusted EBITDA decreased by 29.2% to £3.4m (H1 2024: £4.8m),
reflecting the increased employer costs, increased investment in IT systems
and marketing in H1 2025 to accelerate the momentum in business development.
Adjusted EBITDA margin decreased to 7.2% (H1 2024: 10.2%).
· Basic loss per share at 5.5p (H1 2024: earnings per share at 0.5p)
flows from the reduction in the profitability of operations, whereas
restructuring costs, amortisation of intangibles, and the interest charge
decreased in the period.
· A new financing facility with HSBC was signed in March 2025,
for 39 months to July 2028.
· Net debt increased to £18.0m (H1 2024: £15.6m) as a result of the
lower cashflow generated from operations of £2.2m (H1 2024: £6.6m) due to
the timing of working capital and interest payments, partly compensated by
lower capital expenditure.
Operational Highlights
· Routes to market have been expanded to include physical events,
digital campaigns, advertising, vendor deals, industry and technology forum
membership, and independent consultants, which are already bearing results.
· During H1 2025, the Company 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.
· The sales pipeline reached a record high, climbing to £75 million
First Year Value( 5 ) at the end of H1 2025 (H1 2024: £50m).
· Over £20 million in Total Contract Value (TCV) of new business
sales bookings from both existing and new customers were closed during H1
2025, including an internationally distributed on-premise Unified
Communications managed service for a significant central government contract,
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.
· Maintel won three awards recognising the success of Maintel's
rebranding and repositioning.
· New collaboration solutions powered by Zoom are now marketed to
existing and new customers, with a new project won with a newly acquired
housing association customer.
· 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.
· Following the end of the period the Company appointed Stephen Beynon
as Non-Executive Chair in August, completing the composition of the Board of
Directors. In addition, the operational board has been further strengthened
through the appointment of Sarah Roberts as Chief Operating Officer.
Commenting on the Group's results, Dan Davies, Chief Executive Officer said:
"Maintel delivered a resilient performance in the first half of 2025, with
continued progress across our transformation programme and strategic focus
areas. We saw encouraging momentum in our core technology pillars and entered
the second half with the largest sales pipeline we've seen in recent years.
"The ongoing transformation of our organisational structure, cost base, ways
of working and operational efficiency are all progressing as planned, ensuring
that we are ready to deliver efficiently when the execution of our growth
strategy comes to fruition.
"We are committed to building long-term differentiation in the market,
optimising our operating model, and delivering sustainable growth,
profitability, and cash generation."
Notes
1 Adjusted EBITDA is EBITDA of £2.9m (H1 2024: £3.7m), adjusted for
exceptional items (including one-off restructuring costs) and share based
payments (note 6).
2 Adjusted earnings per share is basic loss per share of 5.5p (H1 2024:
earnings per share of 0.5p), adjusted for intangibles amortisation,
exceptional items and share based payments (note 5). The weighted average
number of shares in the period was 14.4m (H1 2024: 14.4m).
3 Interest bearing debt (excluding issue costs of debt and excluding IFRS 16
debt) minus cash.
4 Adjusted profit before tax of £1.8m (H1 2024: 3.2m) is basic loss before
tax, adjusted for intangibles amortisation, exceptional items and share based
payments.
5 First Year Value consists in the project revenue and the first 12 months'
recurring revenue
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 / Olivia Haines maintel@hudsonsandler.com (mailto:maintel@hudsonsandler.com)
Notes to editors
Maintel Holdings Plc ("Maintel") is a leading provider of cloud, networking
and security managed communications services to the UK public and private
sectors. Its services aim to help its clients operate at the highest level by
designing, implementing, innovating and managing their vital digital
communication solutions, with a focus across three strategic pillars:
· 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), Security Service Edge (SSE) and Cyber Managed Service market
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 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).
BUSINESS REVIEW
Overview
Maintel delivered a resilient performance in the first half of 2025, with
continued progress across its transformation programme and strategic focus
areas. The Group saw encouraging momentum across its core technology pillars
of Unified Communications & Collaboration, Security & Connectivity,
and Customer Experience and entered the second half with the largest sales
pipeline seen in recent years.
An encouraging 20% growth in project-related revenue, which typically precedes
associated recurring revenues, was offset by a contraction in the recurring
revenue base due to a small number of churned contracts as flagged in
January's trading update. As a result, revenue was flat compared with the
first half of 2024, however, increased employer costs and strategic
investments in IT and marketing hampered the Adjusted EBITDA performance.
The ongoing transformation of the Group's organisational structure, cost base,
ways of working and operational efficiency are all progressing as planned,
ensuring that the Group is ready to deliver efficiently when the execution of
its growth strategy comes to fruition. The continued reduction in exceptional
costs, as organisational transformation reaches its final phases in 2025 and
2026, will also ultimately benefit cash flow and deleveraging ambitions.
The continued improvement in the key leading indicators of pipeline
generation, win rates and customer and employee satisfaction results are
pleasing to see, although more time is required before this will benefit the
P&L performance due to delays in pipeline conversion and the expected
delivery lag of large enterprise scale deployments.
Post the period-end, two significant contracts were secured: a nationwide
SD-WAN managed service for a leading UK retailer and a managed Local Network
& Wi-Fi solution for a major county police force. Together, these
represent a total contract value of £9.7 million and reinforce the Group's
position as a trusted provider of secure, scalable communications
infrastructure. These added to the key wins highlighted in the first half of
the year and, combined with an encouraging reduction in churn rates, all bode
well for the recurring revenue levels of future years.
As previously announced, the second half has seen delays in pipeline
conversion and the loss of a key opportunity, which will impact the Group's
full-year performance, nonetheless, the Board remains confident of achieving
the revised guidance.
Despite these challenges, the strategic direction remains clear. The Board is
committed to building the Group's long-term differentiation in the market,
optimising its operating model, and delivering sustainable growth,
profitability, and cash generation. Maintel has an exceptional team, and the
Board would like to thank them for their continued commitment to the Group's
core values and customers.
Results for the six month period ended 30 June 2025
Group revenue was in line with expectations, broadly in line with the first
half of 2024, at £46.5m (H1 2024: £46.6m). Project revenue grew by 20.4% to
£12.0m (H1 2024: 9.9m) supported by the implementation of a large SD-WAN
infrastructure and the deployment of an Aruba solution for a large retailer.
Recurring revenue decreased by 5.9% to £34.5m (H1 2024: 36.7m) following the
pre-announced churn of a small number of contracts. As a consequence,
recurring revenue as a proportion of total revenue was 74.3% (H1 2024: 78.7%).
Project and on-premise managed services division revenues declined by 1.7% to
£21.3m (H1 2024: £21.7m), predominantly due to expected churn of some
specific heritage on-premise telephony and contact centre contracts, as
alluded to earlier in the year. Technology revenues increased by 20.4% to
£12.0m (H1 2024: £9.9m) largely compensating for the reduction in the
managed services revenue. This strong performance reflected the delivery of
the upfront element of contracts won in the second half of 2024 and early
2025, which reflected the success of the strategic repositioning of the Group
as a specialist in communications services. The growth in the first half of
2025 wholly derives from the acceleration in business generation since 2024,
whereas revenue in 2023 benefited from the delivery of delayed orders booked
in 2021 and 2022.
Our Network Services benefited from the growth in Data Connectivity Services
and Cloud revenue. Recurring revenues for Security & Connectivity Services
increased by 5.2% to £10.6m (H1 2024: £10.0m), driven by the continued
delivery of new SD-WAN and Security contracts. Security & Connectivity
Services joins Cloud Communications Services as the Group's two key growth
areas with the largest win so far this year and continued strong growth
potential. In the Period, the revenue of our private and public cloud
platforms increased by 2.5%. Maintel has continued to grow its Cloud services
revenue across unified communications and contact centre applications.
Delivery of the Group's Cloud contracts remained strong, with an increase in
recurring revenue of £8.1m (H1 2024: £7.9m).
Regarding cost management, the Group constantly reviews its organisation to
ensure it has a scalable and efficient business which facilitates our strategy
as a digital communications specialist. This resulted in a 2.4% reduction in
our headcount in H1 2025. To date, investment in business development,
increased employment costs and inflation in some general costs have adversely
impacted the Group's results.
Adjusted EBITDA decreased to £3.4m (H1 2024: £4.8m). Gross margin has been
impacted by continued inflationary pressures, while project mix was less
favourable, and general costs evolved slightly adversely, as described above.
This resulted in an Adjusted EBITDA margin of 7.2% (H1 2024: 10.2%).
The cash conversion reflected the reduction in the cash in-flows from
operating activities to £2.2m (H1 2024: £6.6m), as well as the timing of
interest payments. The Group however continues to reduce its contracted
financial debt, and pursues its strategy to deleverage the business, further
strengthening its financial position.
The Group incurred a loss before tax of £0.8m (H1 2024: loss of £0.3m) and
loss per share of 5.5p (H1 2024: profit per share of 0.5p). This includes a
net exceptional charge of £0.4m (H1 2024: £1.0m) (refer to note 8) and
intangibles amortisation of £2.1m (H1 2024: £2.4m).
Adjusted earnings per share (EPS) decreased by 89.1% to 1.2p (H1 2024: 11.0p)
based on a weighted average number of shares of 14.4m (H1 2024: 14.4m).
Six months
to 30 June 2025 Six months %
to 30 June 2024 change
£000 £000
Revenue 46,484 46,610 (0.3)%
Loss before tax (837) (335)
Add back intangibles amortisation 2,133 2,442
Exceptional items (note 8) 428 1,014
Share based remuneration 42 50
Adjusted profit before tax 1,766 3,171 (44.3)%
Interest 929 997
Depreciation 675 596
Adjusted EBITDA( 1 ) 3,370 4,764 (29.3)%
(Loss) / profit after tax (793) 71 -
Basic (loss) / earnings per share (5.5)p 0.5p -
Diluted (loss) / earnings per share (5.5)p 0.5p -
Adjusted earnings 171 1,584 (89.2)%
Adjusted earnings per share( 2 ) 1.2p 11.0p (89.2)%
Diluted adjusted earnings per share 1.2p 10.9p (89.2)%
Review of operations
Maintel is a Managed Services Provider, with a focus on three, core strategic
technology pillars; Unified Comms & Collaboration, Customer Experience and
Security & Connectivity.
Our Maintel purpose is to use technology to create customer experiences,
services and workplaces that inspire and empower people.
We become trusted insiders within our clients' organisations. An embedded
partner working in close collaboration to deliver their workplace, service and
customer experience strategies. We consult on the design, deploy and manage
solid technology solutions - mission critical infrastructure, platforms and
applications that ensure our clients businesses run efficiently and securely,
achieving their ambitions, while always being ready to adapt.
The following table shows the performance of the three operating segments of
the Group.
Six months to 30 June Six months %
2025 to 30 June 2024 change
Revenue analysis £000 £000
Project and on-premise managed services 21,303 21,671 (1.7)%
Network services 23,534 23,296 1.0%
Mobile 1,647 1,643 0.2%
46,484 46,610 (0.3)%
Total Group
Project and on-premise managed services
Project and on-premise managed services comprise two distinct revenue lines:
· Project revenue: all non-recurring revenues from hardware, software,
professional and consultancy services and other non-recurring sales.
· On-premise managed services: all support and managed service recurring
revenues for hardware and software located on customer premises. This combines
both legacy PBX and Contact Centre systems, which are in a managed decline
across the sector as organisations migrate to more effective and efficient
cloud solutions, with areas of technology such as Local Area Networking (LAN),
WIFI and security, which are still very much current and developing technology
areas and therefore enduring sources of revenue.
These services are predominantly provided across the UK, with some customers
having international footprints. The division also supplies and installs
project-based technology, and professional and consultancy services to the
Group's direct clients and through its partner relationships.
Six months to 30 June Six months to 30 June 2024 %
2025 change
£000 £000
Divisional revenue 21,303 21,671 (1.7)%
Divisional gross profit 4,378 5,638 (22.3)%
Gross margin (%) 20.6% 26.0%
Divisional revenue decreased by 1.7% to £21.3m (H1 2024: £21.7m). Revenue
from the legacy on-premise managed service business decreased by £2.4m, in
line with the expected churn of a few specific accounts and as previously
alluded to, counteracted by a 20.4% growth in project revenues.
The growth in project revenue reflected the delivery of large projects won in
H2 2024, and H1 2025. The associated recurring revenue streams will start to
be recognised in H2 2025.
The gross margin decreased to 20.6% in H1 2025 (H1 2024: 26.0%) as the project
margin in 2024 benefited from the delivery of a high margin one time component
of a specific project, whereas the margin of the managed services decreased
following unfavourable contracts mix.
Network services division
Network Services is made up of three strategic revenue lines:
· Cloud communications services: subscription and managed service
revenues from cloud based Unified Communications and Contact Centre contracts
· Security and connectivity services: subscription, circuit,
co-location and managed service revenues from Wide Area Network (WAN),
Software Defined-WAN (SD-WAN), Internet access and managed security service
contracts
· Voice network services: recurring revenues from both legacy PSTN
voice and modern Voice over IP (VoIP) based SIP Trunking contracts
Six months Six months %
to 30 June to 30 June 2024 change
2025
£000 £000
Call traffic 1,531 1,524 0.5%
Line rental 3,242 3,553 (8.8)%
Data connectivity services 10,568 10,044 5.2%
Cloud 8,128 7,930 2.5%
Other 65 245 (73.5)%
23,534 23,296 1.0%
Total division
Division gross profit 8,776 8,492 3.3%
Gross margin (%) 37.3% 36.5%
Network services revenue grew by 1.0% and gross margin grew to 37.3% (H1 2024:
36.5%). This revenue growth reflects the steady growth in data connectivity
services recurring revenue, up 5.2% and the positive contribution from the
continued growth in cloud subscription and managed service revenue, up 2.5%.
The growth performance of the division reflects the Group's success in winning
and rolling out large Software Defined Wide Area Network (SD-WAN) and Security
managed service contracts in the last few years, and the durable retention of
those contracts.
Line rental revenue decreased by 8.8%, in line with the trend reported in
previous years. The continued growth of the Group's SIP Trunking services
partly compensates the impact of the progressive migration away from the
legacy BT based PSTN services, with the deadline for the end of this service
set to 2027. Call traffic revenues remain consistent at £1.5m (H1 2024:
£1.5m).
Maintel has continued to grow its cloud services revenue across unified
communications and contact centre applications. Delivery of the Group's Cloud
contracts remained strong, with an increase in recurring revenue of 2.5% to
£8.1m (H1 2024: £7.9m). During H1 2025, the Group closed a number of
additional new key contracts for the future in both the Private and Public
cloud spaces.
The expansion of the gross margin of the division to 37.3% (H1 2024: 36.5%)
resulted from the positive mix in the new contracts and the price increases
applied to existing contracts.
Mobile division
Six months Six months %
to 30 June 2025 to 30 June change
2024
£000 £000
Revenue 1,647 1,643 0.2%
Gross profit 815 619 31.7%
Gross margin (%) 49.5% 37.7%
Number of customers 424 471 (10.0%)
Number of connections 26,275 28,070 (6.4%)
Mobile revenue remained consistent at £1.6m (H1 2024: £1.6m). Gross profit
was £0.8m (H1 2024: £0.6m), and gross margins was higher at 49.5% (H1 2024:
37.7%). The level of the margin was primarily due to the timing of bonuses and
one time elements earned in H1 2025, compared with H1 2024. The modest growth
in the division reflects the refocus of business development towards our focus
revenue streams, and the timing of contract renewals.
O2 continues to be the Group's core partner and route to market, bolstered by
its Vodafone agreement and its more recent relationship with Three, which
enhances Maintel's commercial offering as well as increases its ability to
serve customers more effectively and efficiently. Lastly, the Company's own
Maintel Managed Mobile wholesale offering is ideal for customers who require
an agile solution that caters for unique billing, network, and commercial
requirements.
Maintel's mobile go-to-market proposition will continue to focus on the
mid-market and low-end enterprise segments where the Group's mobile portfolio
is best suited, whilst the product remains an adjacent offering to the
Company's core strategic pillars.
Administrative expenses
Administrative expenses primarily comprise costs related to the sales and
marketing teams, support functions and managerial positions, as well as the
associated growth generated by investments and general costs. The total other
administrative expenses, excluding depreciation, amounted to £11.7m (H1 2024:
£11.1m), an increase of £0.6m. This increase mainly reflected the increased
costs of employment, the inflation on some general costs including commercial
insurance, and early investment in business development costs to yield results
in the second half of the 2025 and beyond.
The overall headcount reduced by 2.4% or 11 FTEs and now stands at 441 (H1
2024: 452) as a result of the Group's constant review of its organisational
structure as mentioned above and re-adapting to a scalable, efficient business
to facilitate our strategy as a communications specialist.
Cash flow
The Group's net debt (excluding issue costs of debt and excluding IFRS 16
liabilities) was £18.0m at 30 June 2025, compared with £16.6m net debt at 31
December 2024.
Six months to 30 June Six months
2025 to 30 June 2024
£000 £000
Cash generated operating activities 2,242 6,606
Capital expenditure (1,618) (2,790)
Finance cost (net) (1,268) (705)
Issue costs of debt (198) (30)
Free cashflow (842) 3,081
Proceeds from borrowings 20,000 -
Repayment of borrowings (21,067) (1,200)
Lease liability repayments (445) (470)
(Decrease) / increase in cash and cash equivalents (2,354) 1,411
Cash and cash equivalents at start of period 4,127 4,846
Exchange differences 9 (7)
Cash and cash equivalents at end of period 1,782 6,250
Bank borrowings (19,733) (21,800)
Net debt excluding issue costs of debt (17,951) (15,550)
Adjusted EBITDA (note 6) 3,370 4,764
The Group generated £2.2m of cash from operating activities (H1 2024:
£6.6m).
Capital expenditure was £1.6m (H1 2024: £2.8m), driven by our continued
investment across Maintel's product and service portfolio and delivery
platforms, while the H1 2024 reflected the timing of client related capital
expenditure.
No tax was paid in the first half of the financial year.
Dividends
In line with previous periods, the Board has decided to continue to pause
dividend payments. As such, the Board will not declare an interim dividend for
2025 (H1 2024: Nil).
Although the Board remains focused on the reduction of the Group's debt and
does not feel it is timely to resume dividend payments, this will be kept
under review as conditions further improve.
The Board
Post-period end, on 26 August 2025, the Company was pleased to announce the
appointment of Stephen Beynon as Non-Executive Chair after a thorough and
considered process. The Board is pleased to be once again following best
practice with regard the role of Chairman but remain of the belief that taking
a measured approach was in the best interests of the Company to ensure the
right candidate was chosen. Stephen's background and skill set will be of
great benefit in taking the Company to the next stage of its strategic
direction and organisational transformation plans.
Stephen has over 30 years' experience leading telecoms and energy businesses,
including running the B2B division of Virgin Media in the UK and Optus in
Australia. Most recently, he was co-President of Eutelsat's Connectivity
Business and CEO of its Low Earth Orbit satellite subsidiary OneWeb.
Outlook
As announced previously, while the Company entered the second half of the year
with its largest sales pipeline for many years, it has experienced delays in
pipeline closures and the loss of a significant key new deal for the year. As
a consequence, the Board revised their expectations for FY 2025, now expecting
revenue to be around £95.0m, with slightly unfavourable gross margin levels
due to the remaining revenue mix. Adjusted EBITDA is now expected to be around
£7.0m.
The Board remains committed to its specialist communications Managed Service
Provider strategy and the continued transformation programme, and it is
confident that in combination this will ultimately support the Company's
return to sustainable growth, profitability and cash generation. The Board
believes the Group's focus on continuing to build differentiation in the
market and optimising our operating models for growth will enable the Company
to deliver longer term increase in shareholder value, and remain confident in
achieving the revised guidance.
On behalf of the Board
Dan Davies
Chief Executive Officer
18 September 2025
Consolidated statement of comprehensive income
for the six months ended 30 June 2025
Six months Six months
to 30 June to 30 June
2025 2024
Note £000 £000
(Unaudited) (Unaudited)
Revenue 3 46,484 46,610
Cost of sales (32,515) (31,861)
Gross profit 13,969 14,749
Other operating income 4 457 476
Administrative expenses
Intangibles amortisation (2,133) (2,442)
Exceptional items 8 (428) (1,014)
Share based payments (42) (50)
Other administrative expenses (11,731) (11,057)
(14,334) (14,563)
Operating profit 92 662
Net financing costs (929) (997)
Loss before taxation (837) (335)
Taxation credit 44 406
(Loss) / profit for the period and attributable to owners of the parent (793) 71
(Loss) / earnings per share from continuing operations attributable to the
ordinary equity holders of the parent
Basic 5 (5.5)p 0.5p
Diluted 5 (5.5)p 0.5p
Consolidated statement of financial position
at 30 June 2025
30 June 31 December
2025 2024
Note £000 £000
(Unaudited) (Audited)
Non-current assets
Intangible assets 46,990 47,896
Right-of-use assets 2,056 832
Property, plant and equipment 1,482 946
Deferred tax 653 609
51,181 50,283
Current assets
Inventories 914 790
Trade and other receivables 23,568 24,708
Cash and cash equivalents 1,782 4,127
26,264 29,625
Total assets 77,445 79,908
Current liabilities
Trade and other payables 39,769 41,668
Lease liabilities 633 417
Borrowings 9 1,531 744
Total current liabilities 41,933 42,829
Non-current liabilities
Other payables 2,114 1,747
Lease liabilities 1,278 484
Borrowings 9 18,023 20,000
Total non-current liabilities 21,415 22,231
Total liabilities 63,348 65,060
Total net assets 14,097 14,848
Equity
Issued share capital 144 144
Share premium 24,588 24,588
Other reserves 64 64
Retained losses (10,699) (9,948)
Total equity 14,097 14,848
Consolidated statement of changes in equity (unaudited)
for the six months ended 30 June 2025
Share capital
Other reserves Retained losses
Share premium
Total
£000 £000 £000 £000 £000
At 31 December 2023 144 24,588 64 (10,586) 14,210
Profit for the period - - - 71 71
Total comprehensive income for the period - - - 71 71
Share based payments - - - 50 50
At 30 June 2024 144 24,588 64 (10,465) 14,331
Profit for the period - - - 441 441
Total comprehensive income for the period - - - 441 441
Share based payments - - - 76 76
At 31 December 2024 144 24,588 64 (9,948) 14,848
Loss for the period - - - (793) (793)
Total comprehensive expense for the period - - - (793) (793)
Share based payments - - - 42 42
At 30 June 2025 144 24,588 64 (10,699) 14,097
Consolidated statement of cash flows
for the six months ended 30 June 2025
Six months Six months
to 30 June 2025 to 30 June
2024
£000 £000
(Unaudited) (Unaudited)
Operating activities
Loss before taxation (837) (335)
Adjustments for:
Intangibles amortisation 2,133 2,442
Share based payment charge 42 50
Depreciation of plant and equipment 371 348
Depreciation of right of use asset 304 248
Interest expense 929 997
Operating cash flows before changes in working capital 2,942 3,750
(Increase) / decrease in inventories (124) 868
Decrease in trade and other receivables 1,140 150
(Decrease) / increase in trade and other payables (1,716) 1,838
Cash generated from operating activities 2,242 6,606
Investing activities
Purchase of plant and equipment (391) (342)
Purchase of software intangible assets (795) (2,097)
Investment in internally generated development expenditure (432) (351)
Net cash flows used in investing activities (1,618) (2,790)
Financing activities
Proceeds from borrowings 20,000 -
Repayment of borrowings (21,067) (1,200)
Lease liability repayments (445) (470)
Interest paid (1,268) (705)
Issue costs of debt (198) (30)
Net cash flows generated from financing activities (2,978) (2,405)
Net (decrease) / increase in cash and cash equivalents (2,354) 1,411
Cash and cash equivalents at start of period 4,127 4,846
Exchange differences 9 (7)
Cash and cash equivalents at end of period 1,782 6,250
Maintel Holdings Plc
Notes to the interim financial information
1. General information
Maintel Holdings Plc is a public company limited by shares and is incorporated
and domiciled in the UK, England. Its shares are publicly traded on the AIM
market. Its registered office and principal place of business is 5(th) Floor,
69 Leadenhall Street, London, EC3A 2BG. Its registered company number is
03181729.
2. Basis of preparation
The financial information in these unaudited interim results is that of the
holding company and all its subsidiaries (the Group). The financial
information for the half-years ended 30 June 2025 and 30 June 2024 does not
comprise statutory financial information within the meaning of s434 of the
Companies Act 2006 and is unaudited. It has been prepared in accordance with
the recognition and measurement requirements of UK adopted International
Accounting Standards (IAS) but does not include all the disclosures that would
be required under IAS. The accounting policies adopted in the interim
financial statements are consistent with those adopted in the last annual
report for the financial year 2024 and those applicable for the year ended 31
December 2025.
As permitted, this Interim Report has been prepared in accordance with the AIM
Rules for Companies and is not required to comply with IAS 34 'Interim
Financial Reporting'. The presentation currency of the Group is Pound
Sterling, and all amounts have been rounded to the nearest thousand unless
otherwise stated.
In the application of the Group's accounting policies, management is required
to make judgements, estimates and assumptions about the carrying amounts of
certain assets and liabilities.
Estimates and judgements as applied to items, including impairment of
non-current assets, research and development costs, timing of service revenue
recognition, allocation of the transaction price against the performance
obligations, recoverability of the deferred tax asset and exceptional items
have not materially changed since the year end.
3. Segmental information
For management reporting purposes and operationally, the Group consists of
three business segments: (i) project and on-premise managed services, (ii)
network services, and (iii) mobile services. Each segment applies its
respective resources across inter-related revenue streams which are reviewed
by management collectively under these headings. The businesses of each
segment and a further analysis of revenue are described under their respective
headings in the business review.
The chief operating decision maker has been identified as the Board, which
assesses the performance of the operating segments based on revenue and gross
profit.
Six months to 30 June 2025 (unaudited)
Project and on-premise managed services
Network services Total
Mobile
£000 £000 £000 £000
Revenue 21,303 23,534 1,647 46,484
Gross profit 4,378 8,776 815 13,969
Other operating income 457
Other administrative expenses (11,731)
Share based payments (42)
Intangibles amortisation (2,133)
Exceptional items (428)
Operating profit 92
Interest (net) (929)
Loss before taxation (837)
Income tax credit 44
Loss after taxation (793)
Further analysis of revenue streams is shown in the business review.
The Board does not regularly review the aggregate assets and liabilities of
its segments and accordingly, an analysis of these is not provided.
Analysis of other expenses:
Project and on-premise managed services Network services Central/
Mobile inter-
company Total
£000 £000 £000 £000 £000
Intangibles amortisation - - - 2,133 2,133
Exceptional items - - - 428 428
Six months to 30 June 2024 (unaudited)
Project and on-premise managed services
Network services Total
Mobile
£000 £000 £000 £000
Revenue 21,671 23,296 1,643 46,610
Gross profit 5,638 8,492 619 14,749
Other operating income 476
Other administrative expenses (11,057)
Share based payments (50)
Intangibles amortisation (2,442)
Exceptional items (1,014)
Operating profit 662
Interest (net) (997)
Loss before taxation (335)
Income tax credit 406
Profit after taxation 71
Further analysis of revenue streams is shown in the business review.
The Board does not regularly review the aggregate assets and liabilities of
its segments and accordingly, an analysis of these is not provided.
Analysis of other expenses:
Project and on-premise managed services Network services Central/
Mobile inter-
company Total
£000 £000 £000 £000 £000
Intangibles amortisation - - - 2,442 2,442
Exceptional items 114 39 - 861 1,014
4. Other operating income
Six months Six months
to 30 June 2025 to 30 June
2024
£000 £000
(unaudited) (unaudited)
457 476
Other operating income
Other operating income in the period relates primarily to research and
development credits of £0.3m and supplier commissions, promotions and bonuses
of £0.1m (H1 2024: relates primarily to research and development credits of
£0.5m).
5. Earnings per share
Earnings per share and adjusted earnings per share is calculated by dividing
the (loss) / profit after tax for the period by the weighted average number of
shares in issue for the period. These figures have been prepared as follows:
Six months Six months
to 30 June 2025 to 30 June 2024
£000 £000
(unaudited) (unaudited)
Earnings used in basic and diluted EPS, being (loss) / profit after tax (793) 71
Adjustments: 787 1,438
Amortisation of intangibles on business combinations
Exceptional items (note 8) 428 1,014
Tax relating to above adjustments (293) (601)
Share based payments 42 50
Tax adjustments relating to prior years - (388)
171 1,584
Adjusted earnings used in adjusted EPS
The adjustments above have been made to provide a clearer picture of the
trading performance of the Group.
Six months to 30 June Six months
2025 to 30 June 2024
Number 000 Number 000
Weighted average number of ordinary shares of 1p each 14,362 14,362
Potentially dilutive shares 157 180
14,519 14,542
(Loss) / Earnings per share
Basic (5.5)p 0.5p
Diluted (5.5)p 0.5p
Adjusted - basic after the adjustments in the table above 1.2p 11.0p
Adjusted - diluted after the adjustments in the table above 1.2p 10.9p
In calculating adjusted diluted earnings per share, the weighted average
number of ordinary shares in issue is adjusted to assume conversion of all
potentially dilutive ordinary shares. The Group has one category of
potentially dilutive ordinary share, being those share options granted to
employees where the exercise price is less than the average price of the
Company's ordinary shares during the period.
Potentially dilutive shares have not been included in the diluted EPS for the
six months ended 30 June 2025 on the basis that they are anti-dilutive,
however they may become dilutive in future periods.
Therefore, as a loss has arisen for the six months ended 30 June 2025, the
basic and diluted earnings per share are the same.
6. Earnings before interest, tax, depreciation and amortisation
(EBITDA)
The following table shows the calculation of EBITDA and adjusted EBITDA:
Six months Six months
to 30 June 2025 to 30 June 2024
£000 £000
(unaudited) (unaudited)
(837) (335)
Loss before tax
Net interest payable 929 997
Depreciation of property, plant and equipment 371 348
Depreciation of right of use asset 304 248
Amortisation of intangibles 2,133 2,442
EBITDA 2,900 3,700
Share based payments 42 50
Exceptional items (note 8) 428 1,014
Adjusted EBITDA 3,370 4,764
7. Dividends
The Directors have decided not to declare an interim dividend for 2025 (2024:
£nil).
8. Exceptional items
Six months Six months
to 30 June 2025 to 30 June 2024
£000 £000
(unaudited) (unaudited)
Staff restructuring and other employee related costs 38 300
Costs relating to business transformation 340 712
Fees relating to revised credit facilities agreement 50 2
428 1,014
9. Borrowings
30 June 31 December
2025 2024
£000 £000
(unaudited) (audited)
Current bank loan - secured 1,531 744
Non-current bank loan secured 18,023 20,000
19,554 20,744
On 28 March 2025, the Company signed a new banking agreement with HSBC Bank
plc ("HSBC") to replace the previous facility, for 39 months to 28 June 2028.
The new facility with HSBC consists of a revolving credit facility ("RCF") of
£12.0m with a £8.0m term loan on a reducing basis and a £2.0m arranged
overdraft facility. The term loan is being repaid in equal monthly
instalments, starting in May 2025. The principal balance of the term loan at
30 June 2025 was £7.7m and of the RCF was £12.0m.
Interest terms on the RCF and term loan are linked to SONIA plus a covenant
depending tiered rate of 2.60% to 3.25% per annum over SONIA. Interest terms
on the arranged overdraft are the Bank of England Base Rate plus 0.5%.
Covenants based on EBITDA to Net Finance Charges and Total Net Debt to EBITDA
are tested on a quarterly basis.
The current bank borrowings above are stated net of unamortised issue costs of
debt of £0.2m (31 December 2024: £0.1m).
The facilities are secured by a fixed and floating charge over the assets of
the Company and its subsidiaries.
The Directors consider that there is no material difference between the book
value and fair value of the loan.
10. Post balance sheet events
There have been no events subsequent to the reporting date which would have a
material impact on the interim financial results.
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 IR QDLFFEKLEBBFRecent news on Maintel Holdings
See all newsREG - Maintel Holdings PLC - Interim Results
AnnouncementRCS - Maintel Holdings PLC - Notice of Investor Presentation
AnnouncementREG - Maintel Holdings PLC - Trading Update
AnnouncementREG - Maintel Holdings PLC - Appointment of Non-Executive Chair
AnnouncementRCS - Maintel Holdings PLC - Appointment of Chief Operating Officer
Announcement