Maintel top line drops for the second year in a row
Recurring revenue accounted for 74 per cent of the firm’s total top line despite contract churn and public sector challenges
Maintel reported declining results in FY25 despite signing approximately £50m in new business and securing new contracts across various business units.
For the year ending 31 December 2025, the MSP reported revenue of £92.2m, down 5.8 per cent from £97.9m the previous year.
Gross profit fell 8.5 per cent to £28m, while adjusted EBITDA plummeted 31.4 per cent to £7.2m.
Maintel’s top line breakdown
Recurring revenue, which represented 74 per cent of total turnover, declined 6.6 per cent to £68.4m, mainly due to what the company described as a small number of significant customer contracts that ended in 2024.
Project earnings also slipped 3.2 per cent to £23.8m, reflecting slower development in the public sector and a more competitive private sector market, particularly during H2.
Maintel said that excluding one significant project completed in 2024, underlying project revenue rise would have been 24.6 per cent.
The company signed around £50m of total contract value during the year, with over 70 per cent of new sales bookings coming from its three strategic technology pillars (unified coms and collaboration, customer experience, and security and connectivity).
New agreements included a nationwide SD-WAN and managed network security contract with a leading UK retailer, an AI-enabled customer experience automation deployment for a large credit management company, an international managed unified communications contract for a central government organisation and a public cloud unified communications deployment spanning around 320 stores and distribution centres across the UKI for a major retailer.
Data connectivity increased 3.2 per cent to £20.6m, fuelled by demand for SD-WAN and network security services.
Security and connectivity services also grew 3.2 per cent to £20.6m, while call traffic revenue increased five per cent to £3.1m.
On the other hand, on-premise managed services revenue declined 17.7 per cent to £18.3m, cloud communications earnings fell 1.5 per cent to £17m, line rental dropped 14.2 per cent to £6.3m and mobile turnover declined 10.7 per cent to £3m.
This marks the firm’s second year of revenue decline in a row, as top line dipped 3.4 per cent in FY24.
“2025 has been another year of meaningful progress and disciplined execution across the company,” said CEO Dan Davies.
“We undertook organisational changes designed to improve sales effectiveness and operational efficiency across the business.
“We have also strengthened our senior leadership team, bringing a wealth of industry and leadership experience.
“These actions, taken as part of our ongoing transformation plan, support Maintel’s position as a leaner and more focused organisation.”
Transformed leadership team and outlook
Maintel also strengthened its leadership team during the year with the appointment of Sarah Roberts as COO in August.
In an interview withCRN, she said security and connectivity had become the organisation’s fastest-growing pillar.
Davies became Maintel’s permanent CEO in early 2025 after spending a year in the interim role.
Moving forward, the firm, which ranks number 46 on CRN’s Top VARs list, said it had made a positive start to the year in terms of sales bookings, strengthening its orderbook.
It stated that its focus is on maintaining that sales momentum while delivering and recognising the orderbook, adding: “We have much to be positive about, whilst being cognisant of the difficult market conditions within which we operate.”