Maintel shares fall as profit declines

Maintel, a telecoms and data services company, increased its revenues by six per cent in the first half of 2012, boosted by a significant contribution from its acquisition of Totility in October the previous year.

Revenue for the period rose to £13.5m (H1 2011 - £12.7m), delivering adjusted profit before tax up 38% at £2.35m (H1 2011 - £1.71m) which equates to adjusted earnings per share of 16.6p (H1 2011 - 11.9p), an increase of 39%.

Cost of sales remained stable, edging up slightly from £8.3m to £8.4m. Gross profit came in at £5.1m compared to £4.3m. Actual pre-tax profit was £0.2m compared to £1.6m the same half the previous year.

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Totility generated gross profit of £0.86m, while the Network services business put in a "robust performance", with revenues up 10% at slightly improved margins.

The firm said: "These two businesses made up for the anticipated slowing in our Maintenance and Equipment division where the winding down of two fixed term contracts and other attrition were only offset towards the end of the period by a significant new business win. Equipment sales returned to historically more normal proportions after an exceptional year in 2011.

"The second half has begun quietly but we have a good maintenance and equipment pipeline to close which with mobile and network services prospects gives us cautious optimism for the full year."

Cash at the mid-year point was £2.12m (31 December 2011 - £2.95m). The company has proposed a dividend payment of 6.3p per share (H1 2011: 4.6p), to be paid on October 5th.

The share price fell 1.95% to 377.50p by 12:50.

NR