News

Maintel announce interim results showing strong growth

Group revenue increased by 6 per cent in the six months to 30 June 2012 to £13.5m (H1 2011 - £12.7m) and adjusted profit before tax rose by 38 per cent to £2.35m (H1 2011 - £1.71m). Unadjusted profit before tax was £0.19m after taking account of a £1.79m charge in relation to the acquisition of business-to-business mobile communications company Totility; agreement of the earnout consideration for Totility was concluded in July, ahead of timescale.

Ten per cent of revenue growth during the six months has been organic, excluding Totility’s revenue following its acquisition in October 2011. Maintel has a track record of successful acquisition, having delivered strong results from its 2010 purchase of Redstone, and remains alert to acquisition opportunities.

Totility has made a significant contribution to Maintel’s growth, generating gross profit of £857,000 in the six months and providing ongoing cross-selling opportunities.

Network services revenues have increased by 10 per cent at £3.243m with increased margins. Line rental sales have increased by 21 per cent and data services by 27 per cent. Maintel’s traditional maintenance business delivered steady results with a slight downturn during the period under review due to economic conditions leading to consolidation of customer sites. This is expected to be redressed as a major new contract win which went live on 1 June 2012 impacts on the second half of the year.

Eddie Buxton, CEO, said: “We are very pleased to be delivering robust results in what remains a challenging economic climate. Whilst client consolidations have impacted on some elements of the business during the first six months, these are more than outweighed by strong growth in two rapidly-developing market sectors: network services and mobile.