Successful integration of Azzurri expands Maintel’s core business, driving better than expected results in a highly competitive market
LONDON, UK – 20th March 2017 – Maintel, the fast growing provider of managed communications services for public and private sector enterprises today announced revenue growth of 114% to £108.3m underpinned by the successful acquisition of Azzurri in May 2016.
The group’s core business, excluding Azzurri, was able to achieve 1% organic growth year on year, in a highly competitive market as the business saw significant success in the second half of the year, benefiting from a number of major contract wins.
The group’s adjusted profit before tax also increased by 52% to £11.1m with recurring revenue rising to 73%. Proposed final dividend per share of 17.4p (2015: 16.5p), taking full year dividend per share to 30.8p (2015: 29.3p), an increase of 5% in line with the stated dividend policy.
Maintel also experienced a strong cash performance with operating cash flow of £10.6m and underlying cash conversion of 104% of adjusted EBITDA.
The group’s managed service and technology division delivered a 62% increase in revenue to £64.1m, with managed services revenue up 45% year on year and technology sales up 88%, both benefiting significantly from the Azzurri acquisition.
In addition, with the contribution from Azzurri, Maintel’s network services revenue increased by 346% year on year. The group saw strong growth in cloud through its ICON Communicate proposition. Maintel saw the total number of seats grow 63% over the previous year for its hosted unified communications propositions, which also includes; Skype for Business, Mitel and Avaya.
Mobile revenue increased by 147% to £6.9m with gross margin increasing to 49% (2015: 42%) and gross profit increasing from £1.2m to £3.4m over 2015.
Eddie Buxton, CEO at Maintel said “I am pleased to report a good set of results for Maintel in what has been a very busy year for the group. The highlight was the acquisition of Azzurri, supported by the robust performance of the core Maintel business in the second half, demonstrating the strength of our diversified product portfolio and our ability to respond to changing market conditions.”
“The combination of the enlarged customer base and the broader technological platform positions Maintel well for an exciting growth trajectory in the cloud environment and we look forward to 2017 with cautious optimism”
“Whilst we expect industry competition to remain high, we are well positioned for the coming year given our scale and increased range of product offerings” said Buxton.
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At Maintel, we transform our customers’ communications from conventional to exceptional.
Maintel is a fast-growing provider of managed communications services for public and private sector enterprises across the UK.
We securely connect workforces in the office, on the move and in the cloud to make more agile organisations, more productive workers and better engaged customers. We're passionate about technology, collaboration and communication, and are driven by delivering managed services that put enterprises on the path to business transformation.
Maintel continually invests in its people and products, enabling us to remain among the most accomplished managed services providers.
Founded in 1991, Maintel became AIM listed in 2004. Significant organic growth continues to spearhead our success, feeding the expansion of our footprint and additional capabilities to support the requirements of thousands of customers.
Operating across eight locations in the UK and Ireland, our team of almost 700 people has been bolstered by the acquisition of key enterprise technology providers that complement our core proposition.
Please visit maintel.co.uk for more information.
Tom McMahon/Hugh James/Eleana Stayer
+44 (0) 20 7 802 2626