Maintel announces H1 results and CEO's departure
Maintel's interim results for the six months to 30th June 2019 saw revenue down 3% to £64.5m (H1 2018: £66.5m) with recurring revenue at 69% (H1 2018: 70%) and gross margin at 29% (H1 2018: 27%).
The company also announced that CEO Eddie Buxton will leave at the end of the year. He joined the business in 2009.
Maintel's transition to a cloud and managed services business continues with revenues from cloud and software customers now at £13m, 20% of revenue (H1 2018: 15% of revenue).
Cloud UCaaS seats increased 32% to circa 66,000 (H1 2018: c.50,000).
Chairman John Booth stated: "Performance in the first six months of the year marks continued progress towards our goal of transforming Maintel into a cloud and managed services business and demonstrates the benefits we are receiving from investment in our cloud and software capability, notably improved margins and higher cash conversion.
"Notwithstanding this progress, Group revenue in the period was impacted by the continued market transition to new technologies driving both a change in the revenue profile for project implementation and the revenue of our support business.
"In addition, we have seen some delays in the award of public sector contracts as the new Public Sector framework goes live."
Industry: Unified Communications
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