Maintel reports 68% revenue hike

In its interim results for the six months to 30th June 2017 Maintel's revenues rose 68% to £63.8m (up from £38.1m) with recurring revenue at 73%, down 2% on last year's H1.

Group gross profit increased 50% to £19.6m (H1 2016: £13.1m), and the period ended with net debt of £24.2m.

The results include a full six month contribution from Azzurri, which was acquired in May 2016.

Maintel attributed strong growth to an increased investment in its ICON cloud platforms, with a 55% increase in the number of seats active on the ICON Communicate.

Another highlight this year was the acquisition of Cisco Gold Partner Intrinsic Technology in August, post period end, for total consideration of £5.25 million
 
But the company stated that its managed services and technology performance were negatively affected by delays to customer installations due to Avaya taking longer than anticipated to come out of Chapter 11.

Eddie Buxton, CEO, said: "The performance in the first six months of the year reflects mixed trading across the Group. While we were affected by the prolonged issues at Avaya, we saw strong growth on our ICON platform as well as noticeable progress with our mid-market and larger public sector customers, through our new business and public sector teams.

"While we do not anticipate material improvement from our Avaya base in the second half, we do expect to see continued rapid growth in our ICON cloud platforms and intend to increase investment across the cloud portfolio.

"The second half of the year will benefit from five months contribution from Intrinsic and I am very optimistic about its contribution over time given its Cisco-led skill set."

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