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(Sharecast News) - Maintel reported a fall in first-half profit on Thursday, as higher costs and investment weighed on margins, though the cloud communications provider said its sales pipeline had reached record levels and that it was building momentum for future growth.
Revenue for the six months ended 30 June was broadly flat at 46.5m, while gross profit fell 4.8% to 14m and adjusted EBITDA dropped 29% to 3.4m.
The AIM-traded group swung to a 0.8m pre-tax loss from a 0.5m profit a year earlier, while adjusted pre-tax profit slid 44% to 1.8m.
Net debt widened to 18m from 15.6m as lower operating cashflow offset reduced capital expenditure.
Maintel said revenue was held back by a small number of churned contracts that offset 20% growth in project revenue, while gross margin narrowed to 30.1% from 31.6% due to inflationary pressures and a shift in revenue mix.
It added that it had signed a new 39-month financing facility with HSBC in March.
Operationally, the company said it had fully established its new customer acquisition sales team and expanded its routes to market, driving its sales pipeline to a record 75m first-year value at the end of the period from 50m a year earlier.
It said it had secured over 20m of new business bookings in the half, including contracts with central government, the NHS and major retailers.
"Maintel delivered a resilient performance in the first half of 2025, with continued progress across our transformation programme and strategic focus areas," said chief executive Dan Davies.
"We saw encouraging momentum in our core technology pillars and entered the second half with the largest sales pipeline we've seen in recent years.
"The ongoing transformation of our organisational structure, cost base, ways of working and operational efficiency are all progressing as planned, ensuring that we are ready to deliver efficiently when the execution of our growth strategy comes to fruition."
Reporting by Josh White for Sharecast.com.
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