Last checked at 
(Alliance News) - Cloud and managed service providers Maintel Holdings PLC on Monday said its performance in 2019 was hit by delays to public sector contracts.
Revenue in 2019 slipped 10% to GBP122.9 million from GBP136.5 million, with pretax profit down 18% to GBP1.8 million from GBP2.2 million.
The revenue fall was "driven by delays in the re-letting of the public sector procurement frameworks, macro-economic uncertainty and the performance of two channel partners," Maintel explained.
The company also decided against a final dividend, due to the Covid-19 pandemic. It means Maintel's total payout for the year is 15.1 pence per share, down 57% from 34.5p.
Maintel said: "The business has robust business continuity plans in place to enable us to continue our operations in the face of various adverse scenarios. These have been fully implemented in response to the Covid-19 pandemic and are working well.
"While demand for the group's services in the first quarter of 2020 was in line with expectations, we are now seeing both an increase in demand for cloud services but also some delay in the rollout of other, particularly on-premise, projects. There is also evidence that some customers are delaying placing orders in response to Covid-19."
Maintel has turned to cost-savings due to the pandemic, among the measures it outlined included a 20% salary cut among its board and workforce for a three-month period which started on April 1.
Maintel shares were 5.5% higher at 174.00p each in London on Monday morning.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
