Maintel’s loss widens as contract churn and debt offset stronger bookings

Maintel ($MAI) reported first-half revenue of £45.2 million, down 2.8%, and a pretax loss of £1.7 million compared with £0.8 million. Adjusted EBITDA declined to £3.2 million from £3.4 million. Net debt increased to £22.5 million from £18.0 million a year earlier, while recurring revenue accounted for 70.4% of sales, below the previous 74.3%.

The communications-services provider said contract churn outweighed project-revenue growth and pricing benefits. New-business bookings nevertheless rose 6.6% to £26 million of total contract value, while its pipeline represented £79 million of first-year value. These measures offer potential support for future activity, but the pipeline is not contracted revenue and bookings are not identical to sales recognized in the period. Management remains confident in full-year adjusted EBITDA expectations, despite competitive conditions and the weaker statutory result.

Sources:

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