UK's Maintel H1 revenue slips as contract churn weighs

By Reuters News


Overview

  • UK cloud communications provider's H1 revenue fell 2.8% due to contract churn and mix shift

  • Adjusted EBITDA for H1 declined 4.8%, with cost actions partly offsetting lower revenue

  • Company raised £5.5 mln via equity placing and convertible loan notes to boost liquidity


Outlook

  • Maintel expects further cost savings from the final phase of its Transformation Programme in H2 2026

  • Company remains confident of achieving 2026 Adjusted EBITDA market expectations, but from a lower revenue base

  • Maintel says challenging market conditions and working capital movements will influence short-term performance


Result Drivers

  • PROJECT REVENUE GROWTH - Project revenue rose 11.8%, driven by delivery of large SD-WAN infrastructure and WiFi solutions for clients

  • RECURRING REVENUE DECLINE - Recurring revenue fell 7.8% due to churn in a small number of contracts and a greater weighting towards project revenue

  • COST MANAGEMENT - Overhead cost reduction and restructuring partly offset lower revenue, with a 7.7% headcount reduction and further savings expected from transformation programme


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 45.20 mln

H1 Adjusted Loss Per Share

GBP 0.036

H1 Adjusted EBITDA

GBP 3.20 mln

H1 Adjusted Pretax Profit

GBP 1.70 mln

H1 Gross Profit

GBP 13.40 mln

H1 Loss Per Basic Share

GBP 0.097


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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