Maintel Holdings PLC Trading Update (8884U)
January 24 2017 - 2:00AM
UK Regulatory
TIDMMAI
RNS Number : 8884U
Maintel Holdings PLC
24 January 2017
Maintel Holdings PLC
("Maintel" or the "Company")
Trading Update for the 12 months to 31 December 2016
Maintel Holdings Plc, the leading systems integrator and managed
services provider, is pleased to give an update on trading for the
12 months to 31 December 2016.
Trading in the second half of the financial year has been
encouraging, with both full year revenue and profit now expected to
be marginally ahead of the Board's expectations. In addition, cash
generation has been particularly strong and net debt is now
expected to be lower than previously indicated.
Restoration of momentum in the organic Maintel business
pre-Azzurri has been especially pleasing, with a significant
improvement in the second half. Organic Maintel revenue for the
full 12 month period is now expected to show a slight increase
against the prior year, following a reported 8% decline in H1.
The integration of Azzurri, following the acquisition in May
2016, is progressing well. The Company expects to deliver synergies
in 2016 in line with those announced at the time of the
transaction, with cash savings of GBP1.9m realised in the period.
The Board also continues to expect further synergies to be
delivered in 2017 in line with market expectations.
Cash generation in the period has been strong, with cost
management remaining robust. As a result, net debt at the period
end is expected to show a material improvement on initial
expectations, with adjusted net debt at GBP21.5m.
The Company expects to release preliminary results for the
period on 20 March 2017.
Eddie Buxton, CEO of Maintel, commented:
"We are delighted with the strong performance over the period,
the highlight being the acquisition of Azzurri supported by the
robust performance of the core Maintel business. The combination of
the enlarged customer base and the broader technological platform
positions Maintel well for an exciting growth trajectory in the
cloud environment. Our pipeline remains strong and we look forward
to 2017 with confidence."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) no 596/2014.
For further information please contact:
Eddie Buxton, Chief Executive 020 7401 4601
Mark Townsend, Chief Financial Officer 020 7401 4663
finnCap Ltd
Jonny Franklin-Adams / Emily Watts 020 7220 0500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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