Azzurri acquisition boosts Maintel's revenues by 114%

Maintel's acquisition of Azzurri in May 2016 propelled the MSP's revenues last year to £108.3m, up 114% on the previous year.

The group's core business, excluding Azzurri, notched up 1% organic growth year-on-year, mostly seen in H2 when Maintel bagged a number of big contract wins.

The group's adjusted profit before tax increased by 52% to £11.1m with recurring revenue rising to 73%.

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 from the Azzurri acquisition.

Azzurri also boosted Maintel's network services revenue which increased by 346%. The group also saw strong growth in cloud through its ICON Communicate proposition with the total number of seats for its hosted UC proposition growing 63% over the previous year.

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, said: "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."

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