Final Results

Maintel Holdings PLC
13 March 2006


Maintel Holdings Plc

Preliminary results for the year ended 31 December 2005


Maintel Holdings Plc, the telecoms services company, announces preliminary
results for the year ended 31 December 2005.


Financial highlights

Turnover up 6% to £12.197m (2004: £11.542m)

Profit before tax up 21% to £1.904m (2004: £1.574m before float costs)

Earnings per share up 22% to 10.0p (2004: 8.2p before float costs)

Interim dividend of 1.5p per share paid in September; final dividend of 2.5p per
share proposed

Cash balances at year-end of £3.625m (2004: £3.411m), after share buy-backs
costing £680,000 and dividend payments of £196,000


Operational highlights

Healthy new maintenance contract wins including large multisite corporations,
NHS Trusts and Public Sector clients

Maintel Voice and Data had an encouraging end to the year with a significant
increase in new contracts signed in the last quarter of 2005 compared to the
last quarter of 2004 with notable increases in wholesale line rental and
broadband supply

Awarded a Nortel PSC+ support contract giving direct access to Nortel support
teams

Solid growth in supply and support of VoIP products, and hardware sales into
existing customers is up 18% on 2004. A £2.8m contract was received in February
2006 from the London Probation Board






For further information please contact:

Tim Mason, Chief Executive                          020 7401 4601
Dale Todd, Finance Director                         020 7401 0562


Chairman's statement


Summary of performance

Maintel ends its first full year as a listed company in good heart. I am pleased
to report an increase in pre-tax profits of 21% and earnings per share growth of
22% from 8.2p to 10.0p; these figures are adjusted to take into account float
costs incurred in 2004, without which adjustment profit before tax growth was
51% and earnings per share growth 69%.

Both our major divisions, maintenance and voice and data, grew turnover by 6% in
2005. This growth was achieved against tough pricing competition on the
maintenance side and reflects the commitment of our sales team and continuing
investment in customer retention strategies. In the voice and data division we
flagged at the end of last year the loss of two very large customers. The growth
in this division in the face of these losses is satisfactory and it is good to
report that sales momentum ended the year strong with our product offering
broadening out. Our acquisition of Pinnacle Voice and Data towards the end of
2005 should further enhance this part of our business in the new year. As these
numbers suggest, Maintel continues to manage its cost base in a disciplined way
and exploit the economies of scale of a healthy growing business.

For the year as a whole, the Group generated revenues of £12.2m (2004 - £11.5m)
and pre-tax profits of £1.904m (2004 - £1.574m pre-flotation expenses). The
Group's balance sheet again strengthened with net assets increasing from
£1,197,000 to £1,648,000. An interim dividend of £196,000 was paid in September
and 580,000 shares were repurchased during the year for a consideration of
£680,000. We ended the year with cash balances totalling £3.6m (2004 - £3.4m).
In line with our policy outlined last year of paying out approximately 40% of
post-tax earnings as a dividend to our shareholders, we are proposing a final
dividend for the year of 2.5p a share.

Future prospects

I anticipate a year of stronger top line growth in 2006 for a variety of
reasons. Our first year of public listing has brought enhanced relationships
with a number of bigger players in our sector and we expect to benefit from
these in the period ahead. While pricing remains competitive in the maintenance
business, our tendering activity is brisk and to a broad range of prospects in
both public and private sectors. We have started 2006 on a strong note which
underpins our outlook for the current year.

The visibility that over 7,000 customers gives us tells us that new technologies
in our industry are adopted at very different paces. Our engineering base is
constantly trained to keep in step with our clients' needs and considerable
investment goes into keeping our staff among the best qualified in our industry.
We are confident in our ability to service the latest as well as legacy
equipment efficiently and cost effectively.

We have also invested in greater sales capacity in 2005, especially in our voice
and data network services business, and the outlook here is strong as we go into
2006.

I would like to thank our non-executive director, Dr Bill Madden for his
contribution to Maintel over the years and wish him well in his retirement. I am
pleased to welcome Nicholas Taylor as his successor. Nicholas brings substantial
knowledge of growing companies and corporate governance, as well as his
experience as a senior executive at WPP and RIBA.

Finally, we owe a great deal to the commitment, integrity and loyalty of our
staff. On behalf of the Board and shareholders I offer them our thanks.

J D S Booth
Chairman

10 March 2006





Chief Executive's review



I am very pleased to report that Maintel has achieved continued progress in its
first full year as a listed company, profit before tax increasing by 21% (51%
including float costs in 2004) to £1.9m, and earnings per share by 22%, from
8.2p (adjusted for float costs in 2004) to 10.0p.

The Group's revenues continued to grow, with equipment sales, including VoIP,
showing particularly strong expansion. The voice and data division recovered
well from the loss of two major customers at the end of 2004 with revenue in Q4
2005 up by 32% over Q1. Group revenues consequently increased by 6%, to
£12.197m.

Cash flow also continued to be strong, increasing by £214,000, after payment of
a £196,000 dividend, the use of £680,000 to buy back shares in the Company and
payment in 2005 of £193,000 of the costs relating to the AIM listing in December
2004. Cash balances at the year end were £3.6m.

Maintel Europe

The division grew its revenue by 6% in the year, to £10.2m. The value of the
maintenance base remained stable during 2005, with growth coming from robust
equipment sales - up 18% on 2004 - following an increase in equipment sales
resource and a notable increase in the provision of new systems to some of our
larger customers. The second half of 2005 proved particularly successful with an
increased aggregate turnover of 4% over the first half of the year.

Maintenance revenues, the bulk of which are underpinned by at least annual
contracts, amounted to £7.4m (2004 - £7.3m) representing 73% (2004 - 75%) of the
division's total revenues.

Gross margin remained healthy, at 43% (2004 - 42%), with net margin increasing
to 16.9% (2004 - 13.4%).

The net margin improvement during the year has been achieved largely through
improved utilisation, whilst cost increases have in the main been kept to
inflationary levels. The increase in a number of subcontract support costs has
been noticeable, and is being managed where possible by acquiring additional
skills in-house.

Maintel Europe's core business remains the provision of telecoms maintenance
services, together with the sale of related products and services primarily to
the company's maintenance base.

The year, however, saw a conscious move by the company into the converging
market of IT, with the training of an increasing number of our engineers in new
skills and the recruitment of engineers who bring that knowledge base. Whilst we
recognise that convergence is occurring, and are benefiting particularly from
the new VoIP equipment requirements of our client base, the transition is being
made at noticeably varying rates, with many customers clearly satisfied that
legacy equipment currently remains more financially appropriate for them than
the adoption of new technology in a market which continues to evolve at a rapid
rate. It is therefore our strategy to continue to develop our capabilities of
leading edge technology, whilst retaining the ability to service our older
technology customer base.

2005 also saw the further opening up of the Nortel market in the UK, previously
controlled by BT. We have been increasingly successful in this area, and are
investing in additional engineers and training to take advantage of this
opportunity. This has culminated in Maintel being awarded a distinctive PSC+
support contract with Nortel for the UK.

Beyond the maintenance and supply business, we remain alert to the opportunities
that are presenting themselves more widely in the VoIP arena, and will take
advantage of these as profitable avenues emerge.

It is also the intention to purchase suitable maintenance bases at sensible
prices, as and when the opportunities arise, and integrate these into the
existing infrastructure.

Maintel Voice and Data

During the year, the division added a number of services to its product
portfolio, in particular line rental which had a noticeable positive impact in
the latter stages of the year. Revenues grew by 6% in the year, to £2.1m. In
spite of a further reduction in call selling rates, we have succeeded in
maintaining strong call margins during the year although this will be tempered
in 2006 by line rental which is lower margin.

Attrition remained low in 2005, with no major customers leaving, reflecting the
realistic pricing and reliable service provided by the company. The target
market remains SMEs, however we are seeing opportunities arise in providing some
of our larger maintenance customers with a one stop shop solution, and will
tailor our offerings to such opportunities subject, naturally, to overall
contract profitability.

The new product and package offerings, assisted by a bolstering of the sales
team in the second half, has resulted in a number of large contracts being
signed in the fourth quarter and since the year end, which have recently started
billing, or will start shortly.

Employee costs increased during the year, with the addition of sales and support
staff, and further investments are planned for 2006.

In December 2005, Pinnacle Voice and Data Ltd was acquired. The principal
purpose of the acquisition was the buyout of a commitment on Maintel Voice and
Data to pay Pinnacle commissions relating to business introduced by it, and the
initial consideration was £352,000 including costs, with £124,000 cash acquired
with the company. Assuming all the contracts subject to the commission continue
to run, the saving to Maintel is around £85,000 per annum. In addition, Maintel
will make a further payment to the vendor in December 2006, based on the value
of new contracts signed by the vendor on behalf of Maintel.

Central costs

The group has continued to manage central costs vigilantly and we are encouraged
that administrative expenses have only increased marginally by 2% to £3.3m
(2004: £3.2m) excluding last year's float costs.



Taxation

The group benefits from a degree of marginal relief on the profits of Maintel
Voice and Data, which largely offsets the small amount of costs that are
disallowable for tax deduction, so that the net tax rate in 2005 is 30%. In
2004, the costs of the AIM listing were a disallowable cost, resulting in a tax
rate for the year of 37%.

Dividends

An interim dividend of 1.5p per share (£196,000 in total) was paid on 26
September 2005.

It is proposed to pay a final dividend of 2.5p in respect of 2005, subject to
shareholder approval at the AGM, and payable on 24 April to shareholders on the
register at the close of business on 24 March. This matches our commitment to
distribute 40% of retained annual earnings. In accordance with FRS 21, this
dividend is not accounted for in the financial statements for the period under
review as it had not been resolved to pay it as at 31 December 2005.

Purchase of own shares

Further to the authority granted at the last AGM, the Company repurchased
580,000 of its own shares during 2005, at prices between 112p and 126p, at a
total cost of £680,000. These shares were cancelled prior to the year end. The
share price at 31 December 2005 was 136.5p.

Cash flow

At 31 December 2005 the group had cash and bank balances of £3.625m (2004 -
£3.411m), all of it unrestricted. Net cash inflow in the year was £214,000,
after capital expenditure of £119,000, corporation tax payments of £494,000,
share buyback costs of £680,000, dividend payments of £196,000 and the net cost
of acquiring Pinnacle Voice and Data of £228,000.

The group invests its surplus cash in high interest, low risk accounts or funds.

IFRS (International Financial Reporting Standards)

The directors intend to adopt IFRS reporting with effect from 1 January 2007.

Outlook

Now that the Group has successfully managed a stable first year as an AIM listed
company with increased turnover, margin and profitability, further investment is
being made with a view to increasing the top line growth. Additional sales staff
are being employed both to win new maintenance business and manage existing
customer relationships to maximise the income and profitability from the sales
of VoIP as well as conventional telecom products and services. Recent contract
gains have helped reinforce the value of this expansion.

In particular, I am pleased to report that in February 2006 Maintel was
contracted by The London Probation Board to supply, install and maintain a
network of Nortel VoIP installations across 70 sites throughout Greater London.
The contract is to replace existing technologies through 2006 and maintain all
equipment under a 5 year contract with a total value of approximately £2.8m.
Additionally Maintel will be supplying voice and network services to the London
Probation Board throughout the term of the contract. For 2006, Maintel expects
to receive £1.45m of revenue for the supply and installation phase of this
contract, with ongoing annual income estimated at £330k.


T T Mason
Chief Executive

10 March 2006



Maintel Holdings Plc

Consolidated profit and loss account
for the year ended 31 December 2005

                                                           2005           2004
                                                          £'000          £'000

Turnover                                                 12,197         11,542

Cost of sales                                             7,188          6,901
                                                        ---------      ---------

Gross profit                                              5,009          4,641

------------------------------                          ---------      ---------

General administrative expenses                           3,256          3,187

Cost of AIM listing                                           -            309

------------------------------                          ---------      ---------

Administrative expenses                                   3,256          3,496
                                                        ---------      ---------

Operating profit                                          1,753          1,145

Interest receivable                                         153            120

Interest payable and similar charges                         (2)             -
                                                        ---------      ---------

Profit on ordinary activities                             1,904          1,265
before taxation
                                                        ---------      ---------

Taxation on profit on                                       577            470
ordinary activities
                                                        ---------      ---------

Profit on ordinary activities                             1,327            795
after taxation
                                                        =========      =========



The profit and loss account contains all gains and losses recognised in the year
and all amounts relate to continuing operations.



Maintel Holdings Plc

Consolidated profit and loss account
for the year ended 31 December 2005 (continued)


                                                             2005         2004

Earnings per share

Basic and diluted                                            10.0p         5.9p
                                                          =========    =========

Adjusted - as above but excluding cost of AIM listing        10.0p         8.2p
in 2004                                                  ==========   ==========

Dividend per share                                            1.5p         3.0p
                                                        ===========  ===========



A final dividend of 2.5p per share is proposed, subject to shareholder approval
at the AGM. In accordance with FRS 21, this dividend is not shown in the
financial statements for the period under review as it had not been resolved to
pay it as at 31 December 2005.





Maintel Holdings Plc

Consolidated balance sheet
as at 31 December 2005


                                   2005        2005        2004           2004
                                  £'000       £'000       £'000          £'000
Fixed assets
Intangible assets                               227                          -
Tangible assets                                 240                        264

Current assets
Stocks                              585                     636
Debtors                           1,947                   2,050
Cash at bank and in hand          3,625                   3,411
                                 --------                --------

                                  6,157                   6,097

Creditors: amounts                2,085                   2,120
falling due within one year
                                 --------                --------

Net current assets                            4,072                      3,977

Deferred income                              (2,891)                    (3,044)
                                             --------                   --------

Net assets                                    1,648                      1,197
                                             ========                   ========

Capital and reserves
Called up share capital                         129                        135
Share premium                                   628                        628
Capital redemption reserve                        7                          1
Profit and loss account                         884                        433
                                           ----------                 ----------

Shareholders' funds - equity                  1,648                      1,197
                                           ==========                 ==========





Maintel Holdings Plc

Consolidated cash flow statement
for the year ended 31 December 2005


                                                           2005          2004
                                                          £'000         £'000

Reconciliation of operating profit to net
cash inflow from operating activities

Operating profit                                          1,753         1,145
Depreciation charge                                         143           196
Decrease in stocks                                           51           263
Decrease in debtors                                         132           248
(Decrease)/increase in creditors                           (299)           44
                                                        ---------     ---------

Net cash inflow from operating activities                 1,780         1,896
                                                        =========     =========

Cash flow statement
---------------------

Net cash inflow from                                      1,780         1,896
operating activities

Returns on investments and
servicing of finance
Net interest received                                       151           120

Taxation
Corporation tax                                            (494)         (341)

Capital expenditure and financial
investment
Payments to acquire tangible                               (119)         (146)
fixed assets

Acquisitions and disposals

Purchase of subsidiary undertaking                         (352)            -
Net cash acquired with subsidiary undertaking               124             -

Equity dividends paid                                      (196)         (406)

Financing
Repurchase of own shares for cancellation                  (680)            -
                                                       ----------    ----------

Increase in cash in the year                                214         1,123
                                                       ==========    ==========



Maintel Holdings Plc

Consolidated cash flow statement
for the year ended 31 December 2005 (continued)


Reconciliation of net cash flow to movement in net cash


                                                             2005         2004
                                                            £'000        £'000

Increase in cash in the year                                  214        1,123

Net cash at 1 January 2005                                  3,411        2,288
                                                          ---------    ---------

Net cash at 31 December 2005                                3,625        3,411
                                                          =========    =========




Maintel Holdings Plc

Notes to the preliminary statement


1.   The abridged financial information set out above has been extracted from
financial statements approved by the directors on 10 March 2006, which received
an unqualified report by the Company's auditors, and which will be delivered to
the Registrar of Companies following the Company's annual general meeting. The
financial information does not constitute statutory accounts as defined in
section 240 of the Companies Act 1985, and has been prepared on the basis of the
accounting policies set out in the financial statements for the year ended 31
December 2004.

2.   Segmental analysis

                                                          2005            2004
                                                         £'000           £'000

Turnover

Telephone system maintenance and sales                  10,094           9,566

Telephone network services                               2,103           1,976
                                                       ---------       ---------

                                                        12,197          11,542
                                                       =========       =========

Gross profit

Telephone system maintenance and sales                   4,313           3,980

Telephone network services                                 696             661
                                                      ----------      ----------

                                                         5,009           4,641
                                                      ==========      ==========

Profit before taxation

Telephone system maintenance and sales                   1,691           1,326

Telephone network services                                 213             248
                                                      ----------      ----------

                                                         1,904           1,574

Exceptional item - cost of AIM listing                       -            (309)
                                                      ----------      ----------
                                                         1,904           1,265
                                                      ==========      ==========


3.   Earnings per share

Earnings per share have been calculated using the weighted average number of
shares in issue during the period. This and earnings, being profit after tax,
are as follows:

                                                               2005       2004
                                                              £'000      £'000


Earnings used in basic and diluted EPS, being profit after
tax                                                           1,327        795

Cost of AIM listing                                               -        309
                                                            ---------  ---------

Adjusted earnings                                             1,327      1,104
                                                            =========  =========

Weighted average number of shares                            13,232     13,517
                                                           ========== ==========


The weighted average in 2005 has been adjusted for the purchase of the Company's
shares noted below. There are no share options in existence which would result
in a dilution to basic earnings per share.


4.   Purchase of own shares


During 2005, and pursuant to the authority granted to it at its annual general
meeting in April, the Company acquired 580,000 ordinary shares of 1p each, at a
total cost of £680,000. These shares were subsequently cancelled.


5.   The annual report and accounts will be posted to shareholders on 28
March 2006 and copies will also be available on request from the Company's
registered office at 61 Webber Street, London SE1 0RF.



Ends



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