Maintel has rejoined the £100m revenue club after effort to transform the business lit up its second-half sales.
The AIM-listed cloud and managed communications services provider is bouncing back following a “challenging few years” that culminated in CEO Ioan McRae resigning in February 2023.
It saw calendar 2023 revenues hit £101.3m, up 11% on the previous year but down slightly on its 2021 £103.9m haul.
Maintel previously trailed the fact its 2023 results would likely top expectations in January. The revenue surge reflects “accelerated trading momentum” in the second half following a strategic review and transformation of the business in the first half, it said.
Although pre-tax losses widened to £6.8m on the back of £7m in exceptional costs, adjusted EBITDA more than doubled to £9.1m.
The Avaya partner, which ranked 55th in the recent Oxygen 250, is currently seeking a permanent CEO after Dan Davies replaced Carol Thompson as interim CEO in February 2024.
“2023 was a year of business transformation and performance turnaround for Maintel, thanks to the successful implementation of a strategic review and a new focus on three technology segments: Unified Communications & Collaboration, Customer Experience, and Security & Connectivity,” Davies said.
Maintel’s management team “continues to focus on the strategic organic growth initiatives, with a focus on margin improvement and revenue expansion opportunities”, Davies added.
Some 74% of Maintel’s revenue haul was recurring, down from 77% a year earlier.
It bagged long-term value contracts with the likes of Atos/Unify, Harrods, and Northampton General Hospital NHS Trust during the period.
Of the £7m exceptional costs, £2.3m related to the termination of its Callmedia business, £1.6m to the downsizing of its London premises and £1.5m to staff-related restructuring.
“Our leaner, more focused organisation delivered cost structure improvements which had a onetime exceptional cost. The restructuring of the Group was completed in the first half and payback was within the same year, leaving the future clear for performance and yield improvement,” Davies concluded.
