Maintel’s full-year revenue plummeted by 13 percent to £106.4m due to the knock-on effect of the COVID-19 pandemic.
The reduction in turnover for its year ending 31 December 2020 was driven by delays in implementing project work due to the pandemic and a reduced managed services support base following the loss of several legacy contracts in 2019.
Adjusted EBITDA also declined by 20 percent to £9.5m and adjusted profit before tax fell 26.5 percent to £6.2m. The results published this morning caused Maintel’s share price to drop nearly nine percent at the time of publication.
"In common with companies across the globe, 2020 presented a challenge like no other to our customers, our staff and our company,” stated Maintel CEO, Ioan MacRae.
“As a result of the pandemic, we have understandably seen certain customers delay new orders to preserve cash flows whilst uncertainty around the macroeconomic outlook remained. Furthermore, certain project work was delayed due to difficulties with site access during the lockdowns. Inevitably this had a significant impact on both revenue and EBITDA in the period. Revenue was also affected by the full-year impact of the loss of several legacy contracts in 2019 within our channel partner network”
However, it was not all doom and gloom for Maintel as its transition to a cloud-first company continued at pace.
Its cloud and software revenues increased four percent year-on-year to 26 per cent of total group revenue and it reported strong take-up of its cloud offerings from both the public and private sectors.
Recurring revenue also grew slightly, contributing 73 percent to overall turnover. It also clocked up over 100,000 cloud seats, a key target in its goal to transition to a cloud-first business. Maintel’s cloud forecast is on track to add another 50,000 contracted seats across all platforms, bringing its total to 150,000 seats.
“The business achieved a huge amount during the period, with the meeting of KPIs such as reaching over 100,000 cloud seats, showing a positive momentum in line with our new strategy,” continued MacRae.
“We continued to invest in the group's transformation to a cloud first business, launching four significant new product sets and undertaking a significant restructure from the board down.
