(Sharecast News) - Cloud, network, and security managed communications provider Maintel said in a full-year update on Monday that its strategic efforts and business reorganisation had yielded positive results, positioning it for growth in the coming year.
The AIM-traded firm said that in the first two quarters of 2023, it conducted a comprehensive review of its operations and the markets it serves, resulting in a business reorganisation.
It said the move allowed it to shift its focus towards growth in the second half, leading to an acceleration in trading momentum and financial performance that exceeded expectations.
Maintel's revenue for 2023 reached more than £101m, marking an 11% increase from the prior year's £91m.
The board said the growth was driven by its ability to capitalise on normalised global IT equipment supply chain conditions in the first half.
It added that the unwinding of the order book, along with the formation of the new professional services business group, contributed to strong cash and profit performance, paving the way for significant new business wins.
Throughout 2023, Maintel secured notable contracts and partnerships including agreements with Vanquis Banking Group, Kingfisher IT Services, Harrods, Atos/Unify, Northampton General Hospital NHS Trust, and the Leeds Teaching Hospital.
The board said the successes validated Maintel's strategic pivot towards unified communications and collaboration, customer experience, and secure connectivity as key focus areas.
Financially, Maintel made significant strides in profit generation and working capital management, delivering an adjusted EBITDA of over £9m, making for a substantial increase from the £4.4m reported in 2022.
The company also achieved margin improvements, enhanced its cost structure, and continued efforts to streamline operations and evolve its market and product strategy to ensure sustainable profitability.
Maintel said it was committed to investing in next-generation products and services, while also exploring the integration of new technology and customer service delivery to stay at the forefront of its industry.
The company reported net debt of £18.1m at the end of 2023, compared to £16.6m at the same time in 2022.
With a solid pipeline of opportunities in both the public and private sectors and a leaner organisation, Maintel's board said it was confident in its ability to deliver revenue, profitability, and cash generation in line with market expectations for the new financial year.
"2023 has been a challenging year, following on from three previous challenging years; as such to have the Maintel team support, deliver and build on the changes in focus, operational and cost effectiveness, is an outcome one can only have hoped for when we started on this journey," said chief executive officer Carol Thompson.
"The team are positive, energised and keen to engage with clients, both existing and new.
"Post-pandemic, the rate of technological change in our markets is significant, with changes in business working practices and how and where they use and locate their resources."
Thompson said that was "both exciting and challenging", adding that change was where the opportunity lay.
"Our people are the heart of our business and the reason we succeed, and, in that regard, I thank them for their hard work, dedication and commitment."
Maintel said it was planning on publishing its final results for the year ended 31 December on 23 April.
At 1314 GMT, shares in Maintel Holdings were up 19.21% at 226.5p.
Reporting by Josh White for Sharecast.com.
Maintel (MAI)