Maintel Holdings Plc, a provider of cloud, network and security managed communications services, has released a trading update for the six months ended 30 June 2024.

Despite a slight decline in total revenue to £46.6 million (-1.8%), the company delivered a robust performance, with EBITDA growing by 28.2% to £4.8 million. This growth was driven by significant new contract wins, a streamlined business structure, and price increases. The revenue performance was impacted by the unwinding of a previous year’s order book that had been built up due to the global semiconductor shortage.

Maintel continued to successfully execute its strategic pivot towards becoming a specialist in three key areas: Unified Communications & Collaboration, Customer Experience, and Security & Connectivity. This strategic shift has contributed to the company’s strong financial performance.

In terms of financial health, Maintel has made significant strides in deleveraging its business. Net Cash Debt has been reduced to £15.6 million, down from £21.4 million in the previous year. This improvement in financial position strengthens the company’s overall financial strength.

While the company’s performance in the first half was impacted by the timing of certain new contract wins, Maintel expects a strong second half as the benefits of these multi-year contracts are realised. Despite inflationary pressures affecting gross margins, the company has mitigated these impacts through organisational restructuring and cost control measures, resulting in an improved Adjusted EBITDA margin.

Maintel remains focused on delivering higher-margin new business opportunities in its high-growth segments and is confident in meeting expectations for the current financial year.

The company is expected to announce its unaudited interim results for the six months to 30 June 2024 on Thursday, September 19, 2024.