Successful integration of Azzurri expands Maintel’s core business, driving better than expected results in a highly competitive market
The group’s adjusted profit before tax also increased by 52% to £11.1m with recurring revenue rising to 73%. Proposed final dividend per share of 17.4p (2015: 16.5p), taking full year dividend per share to 30.8p (2015: 29.3p), an increase of 5% in line with the stated dividend policy.
Maintel also experienced a strong cash performance with operating cash flow of £10.6m and underlying cash conversion of 104% of adjusted EBITDA.
The group’s managed service and technology division delivered a 62% increase in revenue to £64.1m, with managed services revenue up 45% year on year and technology sales up 88%, both benefiting significantly from the Azzurri acquisition.
In addition, with the contribution from Azzurri, Maintel’s network services revenue increased by 346% year on year. The group saw strong growth in cloud through its ICON Communicate proposition. Maintel saw the total number of seats grow 63% over the previous year for its hosted unified communications propositions, which also includes; Skype for Business, Mitel and Avaya.
Mobile revenue increased by 147% to £6.9m with gross margin increasing to 49% (2015: 42%) and gross profit increasing from £1.2m to £3.4m over 2015.
Eddie Buxton, CEO at Maintel said “I am pleased to report a good set of results for Maintel in what has been a very busy year for the group. The highlight was the acquisition of Azzurri, supported by the robust performance of the core Maintel business in the second half, demonstrating the strength of our diversified product portfolio and our ability to respond to changing market conditions.”
“The combination of the enlarged customer base and the broader technological platform positions Maintel well for an exciting growth trajectory in the cloud environment and we look forward to 2017 with cautious optimism”
“Whilst we expect industry competition to remain high, we are well positioned for the coming year given our scale and increased range of product offerings” said Buxton.