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    MAI   GB00B046YG73


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Maintel : AGM and General Meetings Document

09/07/2021 | 02:22am EDT

Maintel Holdings Plc

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

Interim results for the six months to 30 June 2021

Pleasing return to organic revenue growth in first half

Maintel Holdings Plc, a leading provider of cloud and managed communication services, is pleased to announce its interim results for the six months to 30 June 2021.

Financial headlines

  • Revenue growth of 1% to £52.3m on an organic basis[1], after adjusting for the disposal of the Managed Print Services business in April 2021. Reported revenue flat at £53.5m (H1 2020: £53.4m)
  • Improved revenue performance aided by significant growth in cloud subscription revenues up 52% at £4.3m (H1 2020: £2.8m) and a recovery in project revenue during the period which contributed to a reduction in recurring revenue to 68% (H1 2020: 74%) of the total
  • Gross margin decreased to 28% (H1 2020: 30%), driven by higher revenue but lower margin technology sales
  • Adjusted EBITDA[2] reduced by 9% on an organic basis[1] due to changing product mix and by 12% to £4.3m (H1 2020: £4.9m) on a headline basis
  • Adjusted earnings per share [3] of 14.2p (H1 2020: 15.8p), a decrease of 10%
  • Net debt of £19.2m [4] reduced significantly from £22.3m at 31 December 2020 and £25.7m at 31 December 2019

Operational highlights

  • Maintel's successful transition to a cloud and managed services business continues, with revenues from cloud and software customers now at £15.9m, 30% of revenue (H1 2020: 25% of revenue) up 19% versus the same period last year (H1 2020: £13.4m)
  • Significant H1 wins included the JD Sports renewal and an SD-WAN migration, a new managed SD-WAN for Sanctuary Housing, a large Private Cloud Contact Centre migration for Admiral Insurance, and a new Genesys CCaaS solution and SD-WAN deployment for Biffa
  • Further contract successes in our new Public Cloud portfolio, which includes Callmedia CX Now, Genesys CCaaS, RingCentral UCaaS and Microsoft Teams Connector
  • Total number of contracted seats increased by 47% to c.117,000 (H1 2020: c.80,000), with a strong pipeline in place to reach over 150,000 contracted seats by year end 2021
  • Completion of the sale of the non-core Managed Print Services business in April 2021 for a total consideration of £4.5m
  • Amendment and extension to current bank facilities with the National Westminster Bank signed on 14 May 2021, extending the facility for 12 months to October 2022 on improved terms

Key Financial Information


Unaudited results for 6 months ended 30 June:




Group revenue




Profit /(loss) before tax




Adjusted profit before tax [5]




Basic earnings/(loss) per share



Adjusted earnings per share [3]




Interim dividend per share proposed




Ioan MacRae, CEO commented:

"Maintel had a solid first half and has continued its transition to a cloud and managed services business. The Group returned to organic revenue growth in H1, exceeding its revenue plan, whilst continuing to reduce debt, aided by the disposal of the Managed Print Services business. With our sales momentum returning, we continue to expect year on year organic revenue and adjusted EBITDA growth from continuing operations for the full year to 31 December 2021.

Revenues from our cloud and related software offerings grew 19% to £15.9m and now contribute 30% of group revenue (up 5% on H1 2020). With over 117,000 contracted cloud seats (47% growth on H1 2020), we remain on plan to achieve 150,000 contracted seats by the end of FY21, assuming a recovery in Public Sector contract awards.

The new sales team structure that was implemented in FY20 and enhanced in January, has seen a distinct improvement with sales meeting or exceeding budget each quarter since Q4

FY20. The team has closed 4 major contracts during H1 2021, each worth over £8m TCV, and acquired several new customer contracts across both the Public and Private sectors, ensuring we maintain our Managed Services revenues and maximise future opportunity development.

Notwithstanding the impact of the ongoing COVID uncertainty and the global semi-conductor supply issues, I remain confident in the Group's outlook for H2 2021 and expect both revenue and adjusted EBITDA to demonstrate organic growth[1] for the full year, in line with expectations."


  1. Organic growth from continuing operations, excluding revenue and EBITDA contributions from the disposed Managed Print Services division of £1.2m (H1 2020: £1.7m ) and £0.1m (H1 2020: £0.3m) respectively. Organic growth for the Full Year will also exclude revenue and profit contributions from the one-off sale transaction of the Group's spare parts and project inventory to Agilitas completed in December 2020 amounting to £1.3m and £0.3m respectively.
  2. Adjusted EBITDA is EBITDA of £7.9m (H1 2020: £4.1m), adjusted for exceptional items and share based payments (note
  3. Adjusted earnings per share is basic earnings per share of 27.0p (H1 2020: loss per share of 6.4p), adjusted for acquired intangibles amortisation, exceptional items and share based payments (note 4). The weighted average number of shares in the period was 14.2m (H1 2020: 14.3m).
  4. Interest bearing debt (excluding issue costs of debt) minus cash.
  5. Adjusted profit before tax of £2.9m (H1 2020: £3.2m) is basic profit/(loss) before tax, adjusted for intangibles amortisation, exceptional items and share based payments.

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

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 / Kate Bannatyne

020 7220 0500

(Corporate Finance)

Richard Chambers/Sunila de Silva (Corporate


Oakley Advisory, (Financial Advisors)

020 7766 6900

Christian Maher


Chairman's statement

In the face of further lockdown restrictions, the Group continued its transformation into a cloud and managed services provider with contracted cloud seats increasing 47% on the same period last year and a strong pipeline underpinning our ambition to take total contracted seats to 150,000 by year-end. With the introduction of a wider portfolio at the end of FY20, our Cloud subscription revenue grew by 52% YoY, supporting our transformation strategy and outlook.

Revenues were encouraging and on an organic(a) basis delivered growth of 1%. Our debt position improved further, reducing to £19.2m following the sale of our Managed Print Services business to Corona Corporate Solutions in April 2021 for £4.5m. This disposal enables complete focus on our key strategic goals and core capabilities as a cloud and managed services business.

Whilst enhancing our portfolio, particularly in public Cloud solutions for UCaaS and CCaaS, we continued investing in our own product development, with three further releases of Callmedia CX Now. Early successes have seen new customer contracts signed for CX Now and a growing pipeline into H2. Our sales teams have continued to perform well since Q4 FY20, with both quarters of the period above plan and an equally strong performance forecast for

H2. Testament to this, and to our addition of strategic vendor offerings in FY20, four major customers have awarded us new contracts amounting to over £30m in value.

Technology revenues grew by 21% to £16.9m (H1 2020: £14m) with successful contracts in Cisco SD-WAN. However, lower gross margins and recurring revenues reflect large high revenue contract wins involving lower margin technology solutions. We expect that, with increased Cloud sales and project delivery, margins and recurring revenues will increase through the second half and into FY22. Adjusted EBITDA was in line with budget at £4.3m, and the Group remains confident of meeting year-end forecasts of £9.5m. On an organic(a) basis this will be a 10% increase on FY20.

Our managed services base has declined by 15% compared to H1 2020 driven by the contract losses reported last year combined with the churn of some smaller contracts, some price erosion caused by customers downsizing their estates and by clients transitioning to Cloud. However, aside from Cloud transition, we expect our MS revenues to be broadly in line with budget. Our managed services and technology revenues grew by 1% overall.

The Network Services division had a very strong H1, with revenues increasing by 4% and gross margin and profit increasing by 4 percentage points and 16% respectively. Cloud revenues were up 52% at £4.3m (H1 2020: £2.8m), significantly contributing to the division's results and ensuring additional margin rich revenue from SIP and associated calls and lines are delivered.

Maintel has recently signed an agreement with WWG (World-wide Generation) to build on the progress of our existing ESG and compliance programmes by incorporating a range of strategies including committing to the Science-Based Target initiative, linking our ESG activities to the UN Social Development Goals and implementing employee and community initiatives that will drive positive change.

I offer the Board's best wishes and thanks to our retiring CFO Mark Townsend as he embarks on an ambitious travel schedule. Mark joined us in 2016 and has been instrumental in a number of acquisitions, including Azzurri and Intrinsic, and latterly in Maintel's transformation into a cloud and managed service organisation. We hope to announce the appointment of his successor shortly.

As announced in June 2020, the Board decided to suspend dividends until the impact of the pandemic was better understood. The Board is keeping this decision under review as conditions stabilise.



The Group remains confident in achieving the guidance issued in January 2021 for Maintel to deliver organic growth(a) for revenue and adjusted EBITDA for FY21.

Whilst public sector contract awards were lower than anticipated in H1, we continue to believe there will be an increase in tender awards during H2 and into FY22 as investment continues in digital transformation across local government and health and education sectors. As such we expect to reach our contracted cloud seats target of 150,000 at year-end, underpinning our continued transition into a cloud and managed services business.

I am encouraged by our sales team's performance year-to-date and strong forecast for H2.

Whilst aspects of the business have been challenging in the first half and the future impact of the pandemic remains difficult to predict, with an additional degree of uncertainty affecting product supply given global semi-conductor shortages, I am confident that the entire Maintel team is now aligned to our strategic goals. With this renewed momentum, innovations across our product portfolio, a focus on new propositions for key verticals and with the strong support of our partners and vendors, we look forward to an improved performance in the second half.

On behalf of shareholders, I would like to thank all our staff for their continued hard work in extraordinary circumstances, and for their sustained commitment to our customers.

J D S Booth


6 September 2021

  1. Organic growth from continuing operations, excluding revenue and EBITDA contributions from the disposed Managed Print Services division of £1.2m (H1 2020: £1.7m ) and £0.1m (H1 2020: £0.3m) respectively. Organic growth for the Full Year will also exclude revenue and profit contributions from the one-off sale transaction of the Group's spare parts and project inventory to Agilitas completed in December 2020 amounting to £1.3m and £0.3m respectively.

Business review

Results for the 6 month period to 30 June 2021

Group revenue remained flat at £53.5m (H1 2020: £53.4m), but on an organic basis(a), adjusting for the Managed Print Services division sold in April 2021, delivered growth of 1%.

Recurring revenue as a percentage of total revenue (being all revenue excluding one-off projects) fell to 68% (H1 2020: 74%) due to the recovery in project revenue in the period.

Adjusted EBITDA(b) reduced by 9% on an organic basis(a) due to changing product mix, and by 12% to £4.3m (H1 2020: £4.9m) on a headline basis.

Adjusted profit before tax (adjustments explained below) was £2.9m (H1 2020: £3.2m).

On an unadjusted basis, the Group generated a profit before tax of £3.8m (H1 2020: loss of

£0.8m) and earnings per share of 27.0p (H1 2020: loss per share of 6.4p). This includes a net

exceptional credit of £3.6m (H1 2020: cost of £1.0m) (refer note 7) and intangibles amortisation

of £2.7m (H1 2020: £3.2m).

Adjusted earnings per share (EPS) decreased by 10% to 14.2p (H1 2020: 15.8p) based on a

weighted average number of shares in the period of 14.4m (H1 2020: 14.3m).


This is an excerpt of the original content. To continue reading it, access the original document here.


Maintel Holdings plc published this content on 07 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 September 2021 06:21:07 UTC.

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Sales 2021 105 M 145 M 145 M
Net income 2021 2,80 M 3,85 M 3,85 M
Net cash 2021 19,7 M 27,1 M 27,1 M
P/E ratio 2021 16,8x
Yield 2021 -
Capitalization 47,8 M 65,9 M 65,8 M
EV / Sales 2021 0,27x
EV / Sales 2022
Nbr of Employees 511
Free-Float 34,7%
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Maintel Holdings Plc Technical Analysis Chart | MAI | GB00B046YG73 | MarketScreener
Technical analysis trends MAINTEL HOLDINGS PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 0
Last Close Price 333,00 GBX
Average target price 600,00 GBX
Spread / Average Target 80,2%
EPS Revisions
Managers and Directors
Ioan Griffith MacRae Chief Executive Officer & Executive Director
John David Sebastian Booth Non-Executive Chairman
Dan J. Davies Director & Chief Technology Officer
Nicholas John Taylor Senior Independent Non-Executive Director
Carol Thompson Non-Executive Director
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