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(Alliance News) - Maintel Holdings PLC on Tuesday said it swung to a first half loss but added that it will reap the rewards of a reorganisation in its second half.
Revenue in the six months to June 30 fell 17% to GBP53.4 million from GBP64.5 million, the cloud and managed service specialist reported. It swung to a pretax loss of GBP799,000 from a GBP1.5 million profit.
"Although the impact of Covid-19 in quarter two has meant that the first half of the year has been challenging, Maintel remains firmly on track with its transition to a cloud and managed services business, as evidenced by the continued increase in contracted cloud seats during the period and the building of a strong pipeline of both new and existing customers," said Chief Executive Officer Ioan MacRae.
The CEO noted that the first half of 2019 was also a "particularly strong comparator".
"In addition, the loss of four legacy support contracts during half two 2019, as previously announced, impacted half one 2020 in full, and contributed to the reduction in revenue in the period," MacRae added.
"I am positive about the group's prospects in half two. We are now seeing good momentum in the number of projects being implemented and sales orders are increasing across both the public and private sectors."
Maintel said it has implemented a "re-organisation and right-sizing", vertically-aligning its sales team and cutting staff across all levels of the business.
The "full-benefit" of the cost savings will be realised in the second half, Maintel noted.
Maintel shares were 8.0% higher at 229.00 pence each in London on Tuesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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