The successful integration of “Azzurri” seems to have done wonders for Maintel’s core business, by driving an incredible range of high-end results in an incredibly competitive market for communications. Recently, Maintel, one of the fastest-growing providers of managed communication services across private and public sector enterprises, announced that they had experienced revenue growth of around 114%, to approximately £108.3m. This growth is underpinned by their successful acquisition and integration of Azzurri during May 2016.
That being said, even without Azzurri, Maintel have been making waves in the industry over the last year or so. The company had been achieving a 1% organic growth year-over-year in a market that remains to be incredibly difficult for new players. Most of the success for Maintel took place during the second half of 2016, thanks to several fantastic major contracts.
Growing Success for Maintel
The Maintel group also revealed numbers about their adjusted profit before tax, which has increased by around 52%, to approximately £11.1 million, with recurring revenue taking a boost of 73%. The proposed final dividend per share at this time is around 17.4p, compared to only 16.5p in 2015. This takes the full dividend per share up to 30.8p, an increase of around 5% in line with the current dividend policy.
Maintel have been seeing significant success throughout various aspects of their business over the last year or so. In fact, the company has also experienced a strong performance in cash, with an operating cash flow of around £10.6 million, as well as an underlying cash conversion of around 104% of the adjusted EBITDA. Additionally, the technology and managed service division for the group delivered a 62% increase in revenue of around £64.1m, with technology sales up by around 88% year-over-year, and managed services revenue up by 45% year-over-year. The chances are that both of these sectors took a positive boost from the new Azzurri acquisition.
A Great Set of Results for Maintel
Thanks to the contribution from Azzurri, Maintel’s network service revenue increased by a further 346% year-over-year, and the group even saw huge growth in cloud through the ICON Communicate proposition. The company experienced a growth in seats of 63% over the last year for hosted unified communications propositions, which includes things like Mitel, Avaya, and Skype for Business. What’s more, mobile revenue saw a boost of 147% to around 6.9 million, with a gross margin increase of 49%, and a gross profit increase from £1.2m to £3.4m over 2015.
According to the CEO of Maintel, Eddie Buxton, the company is thrilled to announce such a positive set of results for Maintel in what has turned out to be an incredibly busy year for the group. The highlight of the year so far for this company has to be its acquisition of Azzurri, but that’s also supported by a great performance throughout the Maintel business, which perhaps goes to show the strength and diversity of their product portfolio in a tough market.
As the customer base for communications continues to grow, and new technology emerges, Maintel hope to be able to maintain their growth, and look forward to moving through the rest of 2017 with cautious optimism.
