Maintel Holdings PLC – MAI – Interim Results

Maintel Holdings PLC – MAI – Interim Results

Maintel Holdings Plc, a leading provider of cloud and managed communication services, announces its interim results for the six months to 30 June 2020.  

 

Financial headlines

 

·      Revenue reduced 17% to £53.4m (H1 2019: £64.5m) with recurring revenue at 74% (H1 2019: 69%)

·      Gross margin increased to 30% (H1 2019: 29%)

·      Adjusted EBITDA[1] reduced 24% to £4.9m (H1 2019: £6.5m)

·      Adjusted earnings per share [2] 15.8p (H1 2019: 30.0p), a decrease of 47%

·      Reported cash conversion of 174% of adjusted EBITDA[3] (H1 2019: 98%), including a £2.9m  working capital benefit arising from HMRC VAT deferment program. Excluding this benefit underlying cash conversion was 114%

·      Net debt at £21.0m [4] reduced from £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 £13.4m, 25% of revenue (H1 2019: 20% of revenue)

·      Cloud UCaaS seats increased 21% to c.80,000 (H1 2019: c.66,000), with strong pipeline developed to reach over 100,000 contracted seats by year end 2020

·      Continued investment into strategic and higher growth areas with new product launches during the period including a new portal for ICON customers and ICON support for Microsoft Teams

·      Re-organisation and right-sizing of business implemented, including vertically aligned sales team and reduction in headcount across all levels of organisation with full benefit of cost savings to be realised in H2

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