29 July 2025

Maintel Holdings plc

("Maintel", the "Company" or the "Group")

Trading Update and Notice of Results

Maintel Holdings Plc, a leading provider of cloud communications, connectivity and security managed communications services, issues the following trading update for the six months ended 30 June 2025, based on unaudited accounts.

Financial performance

Total revenue was flat compared to the first half of 2024 at £46.5 million (H1 2024: £46.6 million), due to a small number of churned contracts as flagged in January's trading update, which offset a 20% growth in Project Revenue and the benefits from price increases implemented in the prior year.

Adjusted EBITDA was £3.4 million (H1 2024: £4.8 million), mainly due to increased employer costs, as also flagged in January's trading update. Additional cost in the period was also driven by continued investment in IT systems and marketing spend in H1 to maximise the associated benefits during H2 2025 and beyond.  H1 2024 also benefited from a single, large contract win with a Housing Association, which represented £1.4 million of H1 Revenue.

Net debt was £18.0 million (June 2024: £15.6 million), as a result of temporary working capital variances, consistent with the Group's latent growth momentum and its negative working capital structure.

The Group continues to actively focus on cost control and maximising operational efficiencies. Planned cost mitigation activities - including reduced property related costs, continued transformation of the organisational model, as well as a comprehensive and ongoing procurement review - started to be executed in the first half and are expected to deliver £1.0 million - £1.5 million of cost savings in FY 2025 and annualised cost savings of £2.0 million - £2.5 million from FY 2026 onwards.

Strategic progress & pipeline

Maintel continues to make good progress in executing its new strategy as part of its organisational and strategic transformation, which began in 2023. To date, the key leading indicators of the turnaround progress have all been positive.

Routes to market have been expanded to include physical events, digital campaigns, advertising, vendor leads, industry and technology forum membership, and independent consultants. The Company has also been building brand recognition and resonance, demonstrated by three recent award wins for its rebrand and repositioning, launched in November 2024, and the successful growth of the marketing-generated pipeline.

As part of its transformation programme, the Company has now fully established its new customer acquisition sales team, which is crucial to Maintel's ability to grow its customer base and has already generated a significant pipeline and closed several early deals.

During the first half, the Company closed over £20 million in Total Contract Value (TCV) of new business sales bookings from both existing and new customers. This included an internationally distributed on-premise Unified Communications managed service for a significant central government contract through a large global service provider; a Hybrid Wide Area Networking upgrade for one of the UK's leading providers of affordable dental care; a new private cloud Unified Communications managed service for South London and Maudsley NHS Trust, and a Wi-Fi refresh project for a large retailer.

In total, the sales pipeline is the largest it has been for many years, climbing to £75 million First Year Value* at the end of June (H1 2024: £50 million). Overall, win rates have continued to improve while the Company is also securing higher-quality earnings from new customer contracts, particularly in its strategic growth markets of Financial Services, Retail, Healthcare and Social Housing. These new business contracts with improved margins will however take some time to flow through to the overall performance of the business, as they blend with the large existing contract base.

Excellent progress has also been made across both employee and customer experience scores, execution of the Company's customer retention strategy, and in continuing to build and strengthen our leadership team.

*First Year Value = project revenue + the 1^st 12 month's recurring revenue

Outlook

The Board remains focused on Maintel's long-term growth strategy and believes that, following the Company's transformation from a generalist managed service provider to a highly skilled specialist, the business is making good progress. Such turnaround programmes take time, however the positive leading indicators, outlined in this update, demonstrate great progress and the Board is confident that these leading indicators will convert into improved financial results and increased shareholder value.

As previously indicated, the Board continues to anticipate that the Group's financial performance will be weighted towards the second half of FY 2025 and remains cautiously optimistic of meeting market expectations for the current year.

The Company expects to announce its unaudited interim results for the six months ended 30 June 2025 on Monday 18 September 2025.

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Notes to editors

Maintel Holdings Plc ("Maintel") is a leading provider of cloud communications, security and connectivity managed communications services to the UK public and private sectors. Its services aim to help its clients create customer experiences, services and workplaces that inspire and empower people, with a focus across three strategic pillars of technology:

·      Unified Communications and Collaboration - Making customers' people more effective, efficient, and collaborative with UC&C technology. The core focus of this pillar is the high growth Unified Communications as a Service (UCaaS) market segment.

·      Customer Experience - Helping customers to acquire, delight and retain their customers using customer experience technology. The core focus of this pillar is the high growth Contact Centre as a Service (CCaaS) market segment.

·      Security & Connectivity - Securely connecting customers' people, partners and guests to their cloud platforms, applications, and data with secure connectivity, and protecting their business from cyber threat. The core focus of this pillar are the high growth Software Defined Wide Area Networking (SD-WAN) and Security Service Edge (SSE) segments.

Maintel combines technology from its strategic, global technology vendor and carrier partners, with its own Intellectual Property, deployed from and managed by its own platforms, to provide seamless solutions that its customers can consume without the need for the internal skillset required to design, deploy and manage the technology themselves.

Maintel serves the whole market, with a particular focus on key verticals of Financial Services, Retail, Public Healthcare, Local Government, Higher Education, Social Housing and Utilities. Its core market constitutes organisations with between 250 and 10,000 employees in the private, public and not-for-profit sectors with headquarters in the UK.

The Company was founded in 1991 and it listed on London's AIM market in 2004 (AIM: MAI).