Systems integrator and managed services provider Maintel (MAI) pushed first-half profits sharply ahead, thanks to a full contribution from cloud services provider Azzurri Communications, acquired in May 2016. Adjusted pre-tax profits rose 62 per cent year on year to £6.3m. And the second half will benefit from a five-month contribution from IT consultancy Intrinsic Technology, acquired in August for £5.25m.
However, all is not well at the managed services and technology division. Some of the larger customers of its business partner Avaya delayed making investment decisions after Avaya filed for bankruptcy in the US, although it is expected to emerge from the Chapter 11 process by the end of this year.
Against this, Maintel is expecting further strong growth in its ICON cloud platform. The managed cloud unified communication service delivered 55 per cent growth in contracted seats in the first half. And restructuring in the mobile division is now largely complete, with a focus away from small businesses towards the mid-market, cutting customer numbers by half. New wins in the public sector included several awards from NHS trusts.
Analysts at FinnCap are forecasting adjusted pre-tax profits for the year to December 2017 of £14.2m and EPS of 80.9p (from £11.1m and 76.8p in 2016).
MAINTEL HOLDINGS (MAI) | ||||
ORD PRICE: | 900p | MARKET VALUE: | £128m | |
TOUCH: | 850-950p | 12-MONTH HIGH: | 1,138p | LOW: 837p |
DIVIDEND YIELD: | 3.6% | PE RATIO: | 21 | |
NET ASSET VALUE: | 201p* | NET DEBT: | 85% |
Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2016 | 38.1 | -0.7 | -8.2 | 13.4 |
2017 | 63.8 | 3.2 | 18.2 | 14.7 |
% change | +68 | - | - | +10 |
Ex-div: | 21 Sep | |||
Payment: | 05 Oct | |||
*Includes intangible assets of £60.3m, or 424p a share |