Maintel down on revenue news and CEO exit

AIM-listed cloud services provider Maintel (LON:MAI) has seen its share price drop by 9.09% to 400p (as of 14:25 BST) after it reported a 3% drop in revenues for the first half of 2019. The company did book a pre-tax profit for the period rather than the loss seen in the same six months of 2018. It was also announced that CEO Eddie Buxton would be leaving the company on the 31st of December.

Chairman John Booth commented: “Performance in the first six months of the year marks continued progress towards our goal of transforming Maintel into a cloud and managed services business and demonstrates the benefits we are receiving from investment in our cloud and software capability, notably improved margins and higher cash conversion. Our ICON platform continues to attract new customers from both public and private sectors with contracted seats growing at 32% to over 66,000. Gross margin increased to 29%, and underlying data revenues have grown 6% as customers transition to cloud.

“Notwithstanding this significant progress, Group revenue in the period was impacted by the continued market transition to new technologies driving both a change in the revenue profile for project implementation and the revenue of our support business. In addition, we have seen some delays in the award of public sector contracts as the new Public Sector framework goes live“.