Maintel revenue flatlines in H1 FY25
The VAR’s transformation is “progressing as planned” despite declining results
London-based VAR Maintel shared mixed results in H1 FY25, as the company was impacted by customer defection and increased spending.
Group revenue decreased 0.2 per cent, from £46.6m to £46.5m due to customer attrition, which offset a 20 per cent earnings increase from projects and price increases.
Recurring revenue was also slightly down year-on-year, representing 74.3 per cent of the organisation’s total revenue, compared to 78.7 per cent at the same period last year.
Gross profit landed at £14m, down 4.8 per cent from £14.7m the year prior, with gross margin decreasing grom 31.6 per cent to 30.1 per cent.
These two figures were reportedly dragged down by in-bound inflationary pressure and a change in revenue mix compared to H1 FY24.
Adjusted EBITDA went down 29.2 per cent to £3.4m (H1 FY24: £4.8m), due to higher employer costs, as well as increased investment in IT systems and marketing in the first half of the year.
"Maintel delivered a resilient performance in the first half of 2025, with continued progress across our transformation programme and strategic focus areas,” said Dan Davies, CEO of the UK-based VAR.
Turning turnover around
While revenue flatlined, the organisation has established new resolutions in an attempt to bring results back on an upward trend.
During the first half of the year, the VAR launched a new customer acquisition sales team, which has already generated a “significant” pipeline and closed a few early deals, according to Maintel.
The firm has also closed more than £20m in total contract value (TCV) of new business sales bookings from both existing and new customers during H1 FY25.
These bookings include on-premises UC managed service for a central government contract, a networking upgrade for a UK provider of dental care, a private cloud UC managed service for South London and Maudsley NHS Trust, and a Wi-Fi refresh project for a retailer.
“We saw encouraging momentum in our core technology pillars and entered the second half with the largest sales pipeline we've seen in recent years,” added Davies.
"The ongoing transformation of our organisational structure, cost base, ways of working, and operational efficiency are all progressing as planned, ensuring that we are ready to deliver efficiently when the execution of our growth strategy comes to fruition.”
Davies took the helm of the British VAR in February this year, putting an end to the company’s lingering search for a permanent CEO, which started when Ioan MacRae left the business in 2023
Maintel also appointed Sarah Roberts as COO in July.