Maintel Share Price (MAI)

I'm sticking with it till results next week at least, as I think the fundamentals / valuation outweighs my concerns re governance (for now). The board changes to me suggest either Harwood is in the driving seat - good news in my books - or that the changes are more innocent. Hopefully we will see some new, high quality and INDEPENDENT NEDs appointed in advance of the AGM in May. Time will tell and very conscious I could be wrong here! Surprised shares have continued to be so strong in the interim...

Ex holder as from today.Had high hopes here but don't like the risk profile now.Gl.

Any other holders on here? I've done OK on this one, but thought there was quite a lot more to go for given the balance sheet is now sorted, the valuation / cash generation and with the upcoming PSTN switch off over the next couple of years which *should* be a tailwind (at least to the better parts of the business).

Current mcap at £37m give or take with £18m net debt and £9m EBITDA in FY23, so about 6x EV/EBITDA. But this falls to about 4.5x by end FY24, and 3.4x (!) by end FY25 based on Cavendish's forecasts which I would hope are conservative given the recent history... I also note the recent acquisition of 4Com by Daisy Group for £215m which shows there is still appetite for M&A in the sector. Daisy bid 450p for Maintel back in 2021 but for some absurd reason was rebuffed by the Board back then.

BUT I must say I am concerned following today's news. Exec Chair stepping down IMMEDIATELY which is strange in of itself with no explanation, Deputy Chair (and 24% shareholder, and I believe who is an NED of Herald IM who own a further 5%) stepping down at AGM. So at that point will only be one NED and two Exec Directors on the Board. No permanent CEO and not clear who is leading the search for one, let alone more NEDs. Then you've got the delay to results which in of itself would be innocent, but in conjunction with the above....

Outside in, it looks like there has been a bust up. Harwood own 18% which gives some reassurance, but not 100% clear they have the votes to push through changes here given the shareholder register, and its a tiny holding in the scheme of things for them...

Penny for your thoughts!!

Anybody on here holding or interested?

Nobody invested comments on that kind of rise?