Maintel Holdings Plc · LSE:MAI
Maintel — H1 2024 Earnings Presentation
25 slides from Maintel's earnings presentation, September 2024
Slide 1: 2024 Half Year Results
2024 Half Year Results. For the six months ended 30 June 2024 September 2024 1
Slide 2: Table of Contents
01. H1 2024 Highlights 02. Our Business Table of Contents 03. Financial Review 04. Business Review 05. Outlook 06. Q&A 2
Slide 3: Our Business
Our Business. We enable our clients to operate at the highest level by designing, implementing, innovating and managing their vital digital communication solutions, alongside world- Overview leading technology partners, our unrivalled and independent expertise, and our heroic commitment to deliver b
Slide 4: 5-year strategy
5-year strategy transformation. Own product and IP Enterprise Value accretion Acquire skills/products Increase the multiple Our Business ● Quality/predictability of earnings Customer partnerships with a ● Organically grow revenue streams in three focus on joint value creation strategic pillars ● Clo
Slide 5: H1 2024 Highlights
H1 2024 Highlights. Dan Davies, Interim Chief Executive Officer 5
Slide 6: H1 2024 Highlights
H1 2024 Highlights. >£33m TCV of new Cloud & Data H1 2024 Highlights business contracts performance fuels the Revenue £46.6m Adj. EBITDA £4.8m signed growth again H1 2023: £47.5m Cloud up 14%, +28.2% on previous year Including the biggest contract in the business’ Data Connectivity/Security Underlyi
Slide 7: Financial Review
Financial Review. Gab Pirona, Chief Financial Officer 7
Slide 8: Key Financials: Revenue and Recurring Revenue
Key Financials. Revenue Recurring Revenue £46.60m -1.8% 79% +40pts Financial Review (H1 2023: £47.50m) (H1 2023: 75%) The total of sales from all customers and partners The percentage of overall revenue that is in all markets. The prime indicator of the size of contracted and recurring. A good indic
Slide 9: Key Financials: Gross Margin and Adjusted EBITDA
Key Financials. Gross Margin % Adjusted EBITDA 31.8% -1.8% £4.8m 28.2% Financial Review (H1 2023: 33.60%) (H1 2023: £3.7m) Gross Margin % as per the consolidated Adjusted EBITDA is adjusted for exceptional items statement of comprehensive income less cost of and share based payments. A great indicat
Slide 10: Key Financials: Net Debt and Operating Cashflow
Key Financials. Net Debt Operating Cashflow £15.6m -27.1% £6.6m 448.2% Financial Review (H1 2023: £21.4m) (H1 2023: £(1.9)m) The net position of cash debt at year-end (31 Operating cashflow as per the consolidated December 2023). A measure of control over the statement of cashflows. A great indicato
Slide 11: Key Financials: Adjusted PBT and Adjusted EPS
Key Financials. Adjusted PBT Adjusted EPS £3.2m 59.0% 11.0p 323.0% Financial Review (H1 2023: £2.0m) (H1 2023: 2.6p) Adjusted for exceptional items, amortization and Adjusted for exceptional items, amortisation of share based payment. A great indicator of the acquisition related intangibles and shar
Slide 12: Profit before tax bridge
ncrease ecrease otal 1 1 1 1 2 Profit before 2 2 2 tax bridge. 1 ) (£’ 1 £(‘000) Loss Before tax -335 + Intangibles Amortisation 2,442 + Exceptional Costs 1,014 1 ts n n a a tio tio os + Share Based Remuneration 50 a era re re rtis eo eo al un mo ion em Adjusted Profit Before Tax 3,171 pt s t os i r
Slide 13: Financial performance - Group operations
Financial performance - Group operations. 1.6 2.1 24.5 21.7 Managed Services & Technology • Managed services - recurring support and managed service revenues for hardware and software located on customer premises H1 2024 H1 2023 (£m) (£m) Financial Review • Technology - non-recurring revenues from h
Slide 14: Managed Services and Technology
Managed Services and Technology. £’000 H1 2024 H1 2023 Change • Expected decline in revenue from legacy on- premise managed service of £4.4m, partially Revenue £21,671 £24,475 (11.5) % offset by new contracts in higher growth Financial Review strategic pillars • Technology revenue declined by 15.8%,
Slide 15: Network Services Division
Network Services Division. • Revenue grew by 11.5% £’000 H1 2024 H1 2023 Change • Significant growth in Cloud and Data connectivity Call traffic £1,524 £1,498 1.7% services, driven by new contract wins and rolling out Financial Review SD-WAN and security managed contracts Line rental £3,553 £3,481 2
Slide 16: Mobile Division
Mobile Division. • Non-core division for the Group £’000 H1 2024 H1 2023 Change • Performance reflected refocus on core revenue streams and timing of contract renewals resulting in Revenue £1,643 £2,094 (21.5)% lower bonuses earnt Financial Review • O2 remains a core partner, alongside continued Gro
Slide 17: Business Update
Business Update. Dan Davies 17
Slide 18: New Platform and Managed Service Products
New Platform and Managed Service Products Business Review Maintel Application New Security & New Cyber Incident Platform & Audiosafe App Connectivity Services Response Service New Maintel Application New Fortinet variant of Adding both retainer based Platform provides a Maintel’s -WAN Managed and on
Slide 19: H1 2024 Deals: Strategic Technology Pillars
Strategic Technology Pillars Contract Unified Customer Secure Deals Highlights TCV Term Comms & Experience Connectivity (Months) Collab Leading European credit £3.2 m 36 FIN SERV management company One of the UK’s largest insurance £1.7m 36 companies Global electronics retailer £0.5 m 28 H1 2024 Dea
Slide 20: Strategy Evolution – 2023 2024 Timeline
Strategy Evolution – 2023 2024 Timeline. Phase I Phase II.a Phase II.b IDENTIFY & PREPARE GROW INVEST ● Target verticals ● Customers ● Build out new products and services Business Review ● TOM aligned to narrower market focus ● Partnerships ● Develop more Intellectual Property ● Pivot the culture fr
Slide 21: Vanquis Bank
Focus Pillars: Customer Experience Vanquis Bank The Customer Vanquis Banking Group is a FTSE All Share company and a leading specialist bank. Established in 1880, Vanquis lends responsibly, helping to aid financial inclusion and social mobility for their customers and the communities they live in. T
Slide 22: JD Sports
Focus Pillars: Security & Connectivity & Unified Comms/Collab JD Sports The Customer JD Sports is 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 und
Slide 23: Angus Council
Focus Pillars: Connectivity, Customer Experience & Unified Comms Angus Council The Customer Angus Council delivers a broad range of services to its population of just under 120,000. Covering 842 square miles of the east coast of Scotland, the region includes 53,000 households across 7 historic towns
Slide 24: Outlook
maintels Outlook.
Slide 25: Current Trading & Outlook
Current Trading & Outlook. Continued to successfully execute the strategic pivot, focusing on brand, growth, specialisation, property, and operational scalability Improved cash conversion, driven by higher cash inflows from operating activities Outlook Closed several high-value new contracts wins in