Comms provider Maintel sees sales top £130m

Shift to services pays dividends as recurring revenue contributes 70 per cent of sales

Maintel has seen its revenue top £130m as it continues its transformation from a comms VAR to a cloud and managed service provider.

For the year ending 31 December 2018, Maintel saw revenue rise eight per cent to £136.6m, while adjusted profit before tax climbed 16 per cent to £10.8m.

Maintel CEO Eddie Buxton said: "During the year we have delivered significant increases in all our key financial metrics, notwithstanding the challenging market backdrop, whilst continuing to make progress in our continued transformation to a cloud and managed services business.

"Growth in contracted seats on our ICON platform accelerated in the fourth quarter of the year and we have delivered several exciting new customer wins, including two multi-year public sector contracts with the NHS, which on implementation will be our largest cloud contracts to date."

Maintel said that its managed services customer base now stands at £44m, boosted by the acquisition of a customer base from Atos for £5.1m in July last year. It added that recurring revenue now makes up almost 70 per cent of its business.

The comms provider has suffered a degree of pain over recent years as it pivoted to a services-led approach, not helped by the struggles of key partner Avaya.

Investors have however responded favourably to this latest set of results, with Maintel's share price climbing as much as 16 per cent today.

Maintel's managed services and technology division - which encompasses areas including unified comms, contact centres and LAN technology - saw sales rise 23 per cent to £89.9m.

Its network services division saw revenue drop 12 per cent to £40.9m, which it attributed to the loss of two high-margin legacy WAN customers.