Tag: Maintel

Maintel’s CEO said the first half of 2022 was “hugely frustrating” due to global supply chain issues.

Ioan MacRae said supply challenges were much worse than  first anticipated during the six months to 30 June 2022.

Projects had to be delayed and this adversely impacted revenue. Maintel’s sales fell by 12.7 percent year on year to £46.7 million during the half-year period. Adjusted EBITDA also reduced to £3.6 million.

“The first half of FY22 has proved hugely frustrating with anticipated challenges exceeding our initial expectations”, MacRae said. Read more…

Maintel has experienced some bad numbers during the first half of 2022 due to global supply chain problems.

Maintel’s sales fell by 12.7 percent year on year to £46.7 million during the half-year. Adjusted EBITDA also reduced to £3.6 million reflecting the revenue dynamic.

Maintel CEO Ioan MacRae said supply challenges were much worse than it first anticipated during the six months to 30 June 2022, with shortages leading to delayed project implementations. This adversely impacted revenue. Read more…

Maintel has posted some excellent interim half-year numbers but for some reason its CEO  Eddie Buxton is leaving  by the end of December, by “mutual agreement.”

Revenues fell for the first half, pre-tax profits increased thanks to the focus on higher-margin business, coming in at £1.5 million, compared to a £0.3 million loss in the same period last year. Revenue was down by three per cent to £64.5 million, but gross margin nudged up a couple of percentage points to reach 29 per cent.

The first-half results were used as an opportunity to reveal that after a decade long stint at Maintel its chief executive Eddie Buxton would leave by the end of December, by “mutual agreement”.

John Booth, chairman of Maintel, said: “Performance in the first six months of the year marks continued progress towards our goal of transforming Maintel into a cloud and managed services business and demonstrates the benefits we are receiving from investment in our cloud and software capability, notably improved margins and higher cash conversion.”

He stated that its ICON platform had continued to deliver growth with the number of contracted seats increasing at 32 per cent to come in over 66,000 and data revenues improved by six per cent as more users moved to the cloud.

But there were some issues that Booth wanted to address in the statement to investors, underlining the challenges that were out there in the second half.

“Notwithstanding this significant progress, Group revenue in the period was impacted by the continued market transition to new technologies driving both a change in the revenue profile for project implementation and the revenue of our support business. Also, we have seen some delays in the award of public sector contracts as the new Public Sector framework goes live,” he said.

In the interim statement, the board stressed it was keen to thank Buxton for his contribution and wished him well for the future.

“Since joining us in 2009, Eddie has overseen a period of significant growth for the Company and has led the transformation of Maintel into a cloud and managed services business. The Board would like to thank Eddie for his strong leadership during this time and wish him well for the future,” stated Booth.

The hunt for a replacement chief executive has started, and Maintel expects to be in the position to announce one shortly.

Systems integrator and managed services provider Maintel has given three reasons why it has had to revise its profit expectations.

It has just released a trading update stating that it had expected to recover the reduction in gross margin in the first half of this financial year, but “it is now evident that this will not happen”, and then outlined three reasons for the revision.

The first centred on the acquisition of Azzurri Communications in May 2016. This deal arrived with two large legacy contracts that were due to wind down over the trading period up to the end of first-half 2018.
“Both of these contracts generated higher gross margins than the group’s average contracts”, said the firm.

“Both contracts have migrated away more quickly than expected and, as a result, less revenue than originally anticipated will be generated from these customers throughout the second half of full-year 2017 and the first half of 2018.”

The second reason was that managed services and technology performance has “been adversely impacted” by delays to customer installations following the Avaya Chapter 11 process.

“The impact has been greater than expected due to prolonged delays in the resolution of the process.

The bankruptcy court approved Avaya’s reorganisation on 28 November, enabling Avaya to exit Chapter 11 by the end of 2017.

“Regarding Avaya, the group is pleased to report that ordering activity started to recover in November which will positively impact Q1 2018”, Maintel said.

The third reason concerned the integration of Intrinsic Technology, which is “going well”, with all of the Intrinsic systems migrated onto one system on 1 December.

“The revenue contribution is in line with our expectations at the time of the acquisition although the gross margins achieved have been lower than anticipated,” the firm stated.

Maintel now forecasts that it will have adjusted EBITDA in the range of £12.5 to £13 million. That still represents a 12 to 18 percent increase on the £11 million adjusted profit before tax posted last year after the acquisition of Azzurri Communications pushed revenue up 114 percent to £108 million.

Analysts are expected a full-year dividend to grow 10 percent year on year in line with existing guidance.