Maintel revenue slips in H1 as recurring sales take a hit

Project revenue partially offset the results, driven by SD-WAN and retail WiFi wins

Maintel has reported a slight dip in turnover for H1 FY26, with contract churn offsetting a double-digit rise in project top line.

The London-based MSP generated £45.2m in top line during the six months ended 30 June, down 2.8 per cent from £46.5m a year earlier.

Recurring earnings fell 7.8 per cent to £31.8m following the churn of a small number of contracts and a shift in sales mix towards projects.

It consequently represented 70.4 per cent of the group’s top line, compared with 74.3 per cent in H1 2025.

On the other hand, project revenue climbed 11.8 per cent to £13.4m, driven by the implementation of a large SD-WAN infrastructure project and the deployment of a WiFi solution for a major retailer.

Maintel also noted that the previous-year period benefited from around £1.1m in revenue linked to a large SD-WAN deal closed during H1 2024.

In November, Maintel COO Sarah Roberts told CRN that the firm's security and connectivity segment were enjoying strong growth, fuelled by customer demand for more seamless connectivity.

Adjusted EBITDA fell 4.8 per cent from £3.4m to £3.2m while gross profit slipped 4.2 per cent to £13.4m.

Legacy services continue decline

On-premise managed services revenue dropped 12.3 per cent to £8.2m, which Maintel attributed mainly to expected churn across heritage on-premise telephone and contact centre contracts.

Security and connectivity sales fell 8.6 per cent to £9.7m while cloud communication services dipped 3.1 per cent to £7.9m.

Line rental suffered the steepest fall, plummeting 18.8 per cent to £2.6m amid the continuing migration away from legacy BT PSTN services.

On the other hand, call traffic earnings rose 6.9 per cent to £1.6m, while mobile sales grew 6.3 per cent to £1.8m.

Maintel has also continued to cut costs as part of the transformation programme it launched in 2023.

Headcount fell by 33, or 7.7 per cent, to 403 during H1.

In February, the firm hired Rachel Cox as chief people officer.

The group plans to execute the restructuring of its operations function during H2, the final major area covered by its transformation programme and expects the move to generate around £400k of savings during the remainder of 2026 and approximately £1m in annualised savings from FY27 onwards.

Despite the revenue decline, Maintel reported stronger sales activity, with bookings rising 6.6 per cent to £26m and its sales pipeline reaching a record £79m.

“The ongoing transformation of our organisational structure, cost base, retention levels, ways of working and operational efficiency are all progressing, with key steps to review our operations delivery model having been planned during the first half of 2026, for execution during the second half of the year,” said Dan Davies, CEO of Maintel.

“We saw encouraging momentum in our core technology pillars and entered the second half with a very solid sales pipeline driving momentum for the second half of 2026.

“However, the wider market we operate in remains challenged both in terms of growth and margin.”

Maintel backs FY26 EBITDA expectations

Moving forward, the board said it remains confident of meeting adjusted EBITDA market expectations for FY26, albeit from a lower revenue base.

It added that project timing, difficult market conditions and working capital movements will continue to affect short-term performance, with the business prioritising adjusted EBITDA and cash generation over revenue.

“We are committed to building long-term differentiation in the market, optimising our operating model, and delivering profitability with stronger cash generation while furthering and strengthening the services and outcomes we deliver to our clients,” added Davies.

Maintel ranks number 46 on CRN’s Top VARs list.