AGM Trading Update

Maintel Holdings Plc, a leading provider of cloud and managed communications services, issues the following trading statement ahead of its Annual General Meeting later today.

During the first five months of the year, the Company was focused on delivering continued pipeline growth across its focus technology pillars, while planning the next phase of its transformation leveraging internal process and system efficiency, spend optimisation and operational gearing.

Revenue performance reflects growing sales momentum after a slower than expected start to the year. New contracts were signed with existing and new customers within target growth vertical sectors and across its focus technology pillars: Security and Connectivity, Customer Experience, and Unified Comms and Collaboration. The first half contract wins included a significant central government managed service contract through a large global service provider. There continues to be a client-led variation in the delivery of sales bookings, with a trend for long contracting cycles, and some projects experiencing longer than anticipated delivery lead times.

As previously announced, the Company continues to contend with widely publicised macroeconomic headwinds, including increased employer-related costs. In response, Maintel has implemented mitigation measures, with the initial benefit of these expected to be realised during the second half of the year, boosting profitability. This, combined with the slower conversion of some sales bookings in the first half and the solid progress on pipeline growth for the second half, means the Board remains cautiously optimistic of meeting market expectations for the current year which will be second half weighted.

The Company has continued to enhance its differentiation in the market, supported by its continuous intellectual property innovation. Its new AuditTrack App will shortly be launched on the Maintel Application Platform, providing a unique way to track historical configuration changes made within the Genesys platform and meeting the demand of some of the Company's larger customers. In addition, a new strategic partnership has been agreed with Zoom Communications, combining Zoom's market leading AI embedded meeting, collaboration and hybrid working platform, with Maintel's pedigree in managed services, voice and network delivery, further broadening the platforms on offer to customers to support their digital transformation journey.

As part of its business transformation, the senior leadership team has been further strengthened, with the appointment of a new Chief Operating Officer who will join the business in the summer. This will further enhance the Operating Board's expertise as the Company pivots from a generalist to a specialist managed service provider.