Trading Update

RNS Number : 8884U

Maintel Holdings PLC

24 January 2017

 

Maintel Holdings PLC

("Maintel" or the "Company")

Trading Update for the 12 months to 31 December 2016

Maintel Holdings Plc, the leading systems integrator and managed services provider, is pleased to give an update on trading for the 12 months to 31 December 2016.

Trading in the second half of the financial year has been encouraging, with both full year revenue and profit now expected to be marginally ahead of the Board's expectations. In addition, cash generation has been particularly strong and net debt is now expected to be lower than previously indicated.

Restoration of momentum in the organic Maintel business pre-Azzurri has been especially pleasing, with a significant improvement in the second half. Organic Maintel revenue for the full 12 month period is now expected to show a slight increase against the prior year, following a reported 8% decline in H1.

The integration of Azzurri, following the acquisition in May 2016, is progressing well. The Company expects to deliver synergies in 2016 in line with those announced at the time of the transaction, with cash savings of £1.9m realised in the period. The Board also continues to expect further synergies to be delivered in 2017 in line with market expectations.

Cash generation in the period has been strong, with cost management remaining robust. As a result, net debt at the period end is expected to show a material improvement on initial expectations, with adjusted net debt at £21.5m.

The Company expects to release preliminary results for the period on 20 March 2017.

Eddie Buxton, CEO of Maintel, commented:

"We are delighted with the strong performance over the period, the highlight being the acquisition of Azzurri supported by the robust performance of the core Maintel business. The combination of the enlarged customer base and the broader technological platform positions Maintel well for an exciting growth trajectory in the cloud environment. Our pipeline remains strong and we look forward to 2017 with confidence."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) no 596/2014.

For further information please contact:

Eddie Buxton, Chief Executive	020 7401 4601
Mark Townsend, Chief Financial Officer	020 7401 4663
finnCap Ltd
Jonny Franklin-Adams / Emily Watts	020 7220 0500

 

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