Maintel Holdings Plc · LSE:MAI
Maintel — FY2023 Earnings Presentation
36 slides from Maintel's earnings presentation, May 2024
Slide 1: 2023 Full Year Results
2023 Full Year Results. For the year ended 31 December 2023 May 2024 01/05/2024 | Page 1
Slide 2: Table of Contents
01. 02. 2023 Highlights Our Business Table of Contents 03. 04. 2023 Financial Review Strategic Transformation & Business Update 05. 06. Outlook Q&A 01/05/2024 | Page 2
Slide 3: 2023 Highlights
2023 Highlights. 01/05/2024 | Page 3
Slide 4: 2023 Highlights
2023 Highlights. Revenues up +11.3% & Sales momentum Cloud & Data Connectivity 8 lots secured in performance fuels the Adjusted EBITDA up rebuilding following NS3 public framework growth 2023 Highlights 106.8% restructure Strong recovery from period of Awards exceeding £45m TCV, Access to public sec
Slide 5: Our Business
Our Business. 01/05/2024 | Page 5
Slide 6: Maintel Overview
We enable our clients to operate at the highest level by designing, implementing, innovating and managing their vital digital communication solutions, alongside Our promise world-leading technology partners, our unrivalled and independent expertise, and our heroic commitment to deliver best-in-class
Slide 7: Maintel at a glance
Each month AIM listed We monitor Locations: 98% of our service daily 12k London – HQ all incidents desk resolves customer Maintel at a glance over 18 – 20k Blackburn are resolved WAN/LAN/WIFI tickets! Cannock remotely devices 450+ Employees Accreditations Customers use over We have 80,000+ telephone
Slide 8: Our Markets
Our focus markets for growth Significant room for growth in our target markets Financial Enterprise Public Social Utilities Services Retail Healthcare Housing (Water & Energy) (FCA Credit Institutions) (Orgs with >1,000 FTE) (UK NHS Trusts) Our Markets Number of target organisations 1091 2,800 215 1
Slide 9: Strategic Partners
Our key strategic partners. Strategic Partners Maintel works closely with a number of carefully selected leading technology providers and carriers to deliver proven tailored communications solutions to customers. 01/05/2024 | Page 9
Slide 10: 2023 Financial Review
2023 Financial Review. 01/05/2024 | Page 10
Slide 11: Financial Review: Key Financials
Key Financials Financial Review • +7.0% in absolute value • Order Book +3.0% • Decrease Vs 2022 due to unusually low level of project • Cloud and Data Growth +3.0% revenue in 2022 (global supply chain issues) • Price Increases +2.1% • Overall increasing trend reflects the move towards SaaS • Compoun
Slide 12: Financial Review: Key Financials
Key Financials Financial Review • Net price increases contributed 2.1pts • Business transformation contributes +5.9m, net of re- • Cloud higher margin revenue added 1.0pt investments • Inflation and salary increase headwinds -£2.3m • Non-recurring 2022 benefits -£1.6m 08/05/2024 01/05/2024 | Page 12
Slide 13: Financial Review: Key Financials
Key Financials Financial Review • Capex £4.4m (including £0.6m capitalised R&D), • Cash exceptional costs weighted -£3.4m entirely client delivery focused • High cash conversion (adjusted): 97% • Transformation and restructuring: £3.4m • Working capital normalisation -£0.3m • Interest payments £1.9m
Slide 14: Financial Review: Key Financials
Key Financials Financial Review • Adjusted Ebitda +£4.8m • Benefiting from increased deferred tax credit deriving • Interest charge +£1.0m from transformation and restructuring charges • Unchanged number of shares 08/05/2024 01/05/2024 | Page 14
Slide 15: Financial performance - Group operations
Financial performance - Group operations. FY 2022 FY 2023 Managed Services & Technology £4.4m £3.8m Managed services includes all support and managed service recurring revenues for hardware and software located on customer premises (Telephony, Contact Centre, LAN, WIFI Security). £52.1 £40.1 Financi
Slide 16: Managed Services and Technology
Managed Services and Technology. £’000 Dec-23 Dec-22 Change • Project revenue +23%, due to order book unwinding. Financial Review Revenue £ 52,097 £ 46,509 12.0 % • Support revenue up +0.9% as churn reduced by 5pts. Gross Profit £ 12,285 £ 11,399 7.8 % • Gross margin impact by mix towards lower marg
Slide 17: Network Services Division
Network Services Division. • Growth in Cloud driving higher margin revenue. £’000 Dec-23 Dec-22 Change • Return to strong growth in Data Connectivity, driven Call traffic £ 3,408 £ 2,921 16.7 % by key SD-WAN & cloud security contracts. Financial Review • Fixed line revenue (Call traffic and line ren
Slide 18: Mobile Division
Mobile Division. • Division not core to Group growth. £’000 Dec-23 Dec-22 Change • Focus on customer retention rather than new Financial Review business. Revenue £ 3,848 £ 4,434 -13.2 % Gross Profit £ 1,568 £ 1,820 -13.8 % Gross Margin 41 % 41 % - (%) Number of 511 535 -4.5 % customers Number of 28,
Slide 19: Strategic Transformation & Business Update
Strategic Transformation & Business Update. 01/05/2024 | Page 19
Slide 20: Strategy Update
5 year strategy transformation. Own product and IP Strategy Update Enterprise Value accretion Acquire skills/products Increase the multiple Driving share price: ● Quality/predictability of earnings Customer partnerships with a focus on joint value creation ● Acquiring revenue streams in the 3 pillar
Slide 21: Strategy Transformation Overview
Strategy Transformation Overview. TO FROM Cloud networking, Strategy Communications customer experience generalists and collaboration specialist Strategy Update Unified Communications and Contact Centre Cloud Networking (SD-WAN) Technology Collaboration “as a Service” “as a Service” and Security Seg
Slide 22: Strategy Evolution – 2023 2024 Timeline
Strategy Evolution – 2023 2024 Timeline. Phase I Phase II.a Phase II.b IDENTIFY & PREPARE GROW INVEST ● Target verticals ● Companies ● Build out new products and services Strategy Update ● TOM aligned to narrower market focus ● People ● Develop more of our own IP ● Pivot the culture from combative t
Slide 23: Product/Service News
Product/Service News. Business Update 08/05/2024 01/05/2024 | Page 23
Slide 24: What is the Maintel Application Platform?
What is the Maintel Application Platform? An application & middleware “fabric”, anchored within Amazon Web Services (an extension of our Maintel Infrastructure Platform), that enables Maintel to deliver Business Update applications and integrations “as a service”. “Lego blocks” of code, using a lead
Slide 25: Maintel Audiosafe
Maintel Audiosafe The first app launched from the Maintel Application Platform. Audiosafe provides customers with the ability to automatically export, archive, search and Business Update filter all their Call recordings, and retain them for as long as needed. Solution • App to export & centralise th
Slide 26: Outlook
Outlook. 01/05/2024 | Page 26
Slide 27: Full year 2024 – Outlook
Full year 2024 – Outlook. • Close out key deals in H1. • Continue to build Sales Pipeline. • Business transformation now focussed on brand, growth, specialisation, property and operational scalability. Outlook • Continued tight cost control. • Continued Digital Transformation of the Maintel systems
Slide 28: Questions & Answers
Questions & Answers. 01/05/2024 | Page 28
Slide 29: Backup/Reference Appendix
Backup/Reference Appendix. 01/05/2024 | Page 29
Slide 30: Industry to Product Attribute Mapping
Industry to Product Attribute Mapping. Unified Comms & Customer Security & Collab Experience Connectivity Best Fit Finance/Insurance Finance/Insurance Retail Appendix Retail Retail Finance/Insurance Healthcare Utilities Utilities Utilities Housing Authorities Housing Authorities Housing Authorities
Slide 31: ESG/Sustainability
ESG/Sustainability. Appendix 08/05/2024 01/05/2024 | Page 31
Slide 32: Working Capital
Working Capital. Impact on FY 23 (£m) Dec-22 Dec-23 Cashflow Non delivery related Other debtors 0.7 0.3 0.4 Appendix Prepayments 0.6 0.8 (0.2) Other creditors (5.2) (5.9) 0.7 Delivery related Inventory 2.6 1.7 0.9 Trade debtors 13.0 12.3 0.6 Unbilled revenue 1.9 1.3 0.6 Deferred revenue (20.1) (21.9
Slide 33: Cash Conversion & Exceptionals
Cash Conversion & Exceptionals. (£m) (£m) Exceptional items Non-cash Transformation Callmedia - Assets impairment 2,288 Adjusted Ebitda 9.1 Transformation Property downsizing - Impairment 1,340 Capex / IFRS 16 (4.4) Cash Restructuring Restructuring 1,548 Transformation & Transformation Other costs b
Slide 34: NHS Highland - Unified Communications & Collaboration
Focus Pillar: Unified Communications & Collaboration NHS Highland The Customer Argyll and Bute Health and Social Care Partnership (HSCP) provides all health and social care services across a large geographical area in the west of Scotland. GPs, hospitals, health workers and social care staff work si
Slide 35: BNP Paribas Personal Finance - Customer Experience
Focus Pillar: Customer Experience BNP Paribas Personal Finance The Customer A leading finance provider in Europe. Part of BNP Paribas, one of the largest banks in the world with over 200 years of history, operating in 72 countries with over 200,000 employees worldwide. The Issue BNPP needed to repla
Slide 36: JD Sports - Security & Connectivity
Focus Pillars: Security & Connectivity & Unified Comms/Collab JD Sports The Customer A sports-fashion retail company headquartered in Bury, Lancashire, England with shops throughout the United Kingdom, Europe, the United States, Asia, and Australia. It has over 50 high street brands under its umbrel