Share Search
Visit the Share Search
You are here:
Maintel revenue dips as Brexit worries weigh
2nd Sep 2019 13:12
(Sharecast News) - Shares in Maintel Holdings dipped on Monday after it reported a drop in interim revenue and warned Brexit uncertainty was beginning to interfere with contracts.
The AIM traded company's interim revenue came in at £65.5m for the six month period ended 30 June, which was down by 3% compared to the same period last year, which the company said was due to the market's move to newer technologies and some price erosion in the support component of Maintel's managed service base.
John Booth, chairman of Maintel, said: "Group revenue in the period was impacted by the continued market transition to new technologies driving both a change in the revenue profile for project implementation and the revenue of our support business. In addition, we have seen some delays in the award of public sector contracts as the new public sector framework goes live."
Furthermore, the company warned that, though underlying demand for its services remains high, more customers are expressing their concerns about the economy and the uncertainty around the prospect of a disorderly exit from the EU, causing some contract close dates to move out, as organisations give more scrutiny to their larger investment decisions.
However, Maintel still managed to swing from a loss before tax of £0.3m to a profit of £1.5m after a 6% drop in cost of sales more than mitigated the drop in revenue.
For the full year, adjusted earnings before interest, tax, depreciation and amortization is now expected to be in the range of £13-14m.
Maintel Holdings shares were down 9.32% at 399.00p at 1603 BST.
The AIM traded company's interim revenue came in at £65.5m for the six month period ended 30 June, which was down by 3% compared to the same period last year, which the company said was due to the market's move to newer technologies and some price erosion in the support component of Maintel's managed service base.
John Booth, chairman of Maintel, said: "Group revenue in the period was impacted by the continued market transition to new technologies driving both a change in the revenue profile for project implementation and the revenue of our support business. In addition, we have seen some delays in the award of public sector contracts as the new public sector framework goes live."
Furthermore, the company warned that, though underlying demand for its services remains high, more customers are expressing their concerns about the economy and the uncertainty around the prospect of a disorderly exit from the EU, causing some contract close dates to move out, as organisations give more scrutiny to their larger investment decisions.
However, Maintel still managed to swing from a loss before tax of £0.3m to a profit of £1.5m after a 6% drop in cost of sales more than mitigated the drop in revenue.
For the full year, adjusted earnings before interest, tax, depreciation and amortization is now expected to be in the range of £13-14m.
Maintel Holdings shares were down 9.32% at 399.00p at 1603 BST.