Final Results

Maintel Holdings PLC 11 March 2005 Maintel Holdings Plc Preliminary results for the year ended 31 December 2004 Maintel Holdings Plc, the telecoms services company, announces preliminary results for the year ended 31 December 2004. Financial and business highlights Company floated on AIM on 20 December 2004 Turnover up 7% to £11.542m (2003: £10.764m) Profit before tax and float costs up 16% to £1.574m (2003: £1.352m) Earnings per share before float costs of 8.2p (2003: 7.1p) Cash balances at year-end of £3.411m (2003: £2.288m) Chairman's statement I am pleased to present Maintel's first Annual Report as a listed company and to report another year of satisfactory growth for the Group. Maintel Holdings Plc was admitted to the Alternative Investment Market on 20 December 2004 by way of a placing of 4,757,246 ordinary shares with institutional and private investors. Summary of performance Aggressive pricing of maintenance services by some of our competitors during 2004 resulted in comparatively low levels of new maintenance business signed, especially in the first half of the year. In spite of this, existing customer growth together with increased equipment sales and growth in the voice and data business all contributed to an increase in the Group's profitability. For the year as a whole, the Group generated revenues of £11.542m, 7% up on 2003, and profit before tax and the costs of the AIM listing of £1.574m, an increase of 16%. The Group's balance sheet strengthened during the year with net assets increasing from £808,000 to £1,197,000. A dividend of £406,000 was paid in January 2004 and the one off costs of admission to AIM totalling £309,000 were absorbed in December 2004. Cash balances totalled £3.411m at year-end. The Company remains committed to its policy of paying a significant dividend to shareholders and expects to maintain annual dividend payments at about 40% of post-tax earnings. The next dividend is expected to be in respect of the six months to 30 June 2005. Future Prospects The public listing of your Company has further raised its profile and standing as one of the UK's leading independent national telecommunications maintenance companies. The range of equipment we maintain and our national reach give us a strong commercial advantage. Although pricing remains competitive in some sectors, tendering activity for new business is currently brisk and the Company has recently secured a significant new contract with a government department. Your Company actively monitors developments in the telecommunications services industry and keeps under constant review its product and service offering to its 7,000-strong customer base. We are currently developing Voice Over IP (VoIP) offerings for our customers and expect to launch these during 2005. We also anticipate broadening our expertise to cover a wider range of IT products during the year. On behalf of the Board and shareholders, I would like to express my thanks to Maintel's loyal and energetic staff. The Company's performance in 2004 and its successful debut on AIM are due to their hard work and enthusiasm. We are confident that the Company is well positioned for future growth. J D S Booth Chairman 10 March 2005 Maintel Holdings Plc Consolidated profit and loss account for the year ended 31 December 2004 2004 2003 £'000 £'000 Turnover 11,542 10,764 Cost of sales 6,901 6,419 ----------------------- Gross profit 4,641 4,345 ------------------------------------------------------------------------------- General administration expenses 3,187 3,041 Cost of AIM listing 309 - ------------------------------------------------------------------------------- Administrative expenses 3,496 3,041 ----------------------- Operating profit 1,145 1,304 Interest receivable 120 57 Interest payable and similar charges - (9) ----------------------- Profit on ordinary activities 1,265 1,352 before taxation ----------------------- Taxation on profit on 470 390 ordinary activities ----------------------- Profit on ordinary activities 795 962 after taxation Dividends 406 301 ----------------------- Retained profit for the year 389 661 ======================= The profit and loss account contains all gains and losses recognised in the year and all amounts relate to continuing operations. Maintel Holdings Plc Consolidated profit and loss account for the year ended 31 December 2004 (continued) 2004 2003 Earnings per share Basic and diluted (2003 restated for share capital changes - note 2) 5.9p 7.1p ====================== Adjusted - as above but excluding cost of AIM listing 8.2p 7.1p ====================== Dividend per share (2003 restated for share capital changes) 3.0p 2.2p ====================== Maintel Holdings Plc Consolidated balance sheet as at 31 December 2004 2004 2004 2003 2003 £'000 £'000 £'000 £'000 Fixed assets Tangible assets 264 314 Current assets Stocks 636 899 Debtors 2,050 2,285 Cash at bank and in hand 3,411 2,288 --------- --------- 6,097 5,472 --------- --------- Creditors: amounts falling due within one year 2,120 1,809 --------- --------- Net current assets 3,977 3,663 Deferred income (3,044) (3,169) --------- --------- Net assets 1,197 808 ========= ========= Capital and reserves Called up share capital 135 12 Share premium 628 751 Capital redemption reserve 1 1 Profit and loss account 433 44 --------- --------- Shareholders' funds - equity 1,197 808 ========= ========= Maintel Holdings Plc Consolidated cash flow statement for the year ended 31 December 2004 2004 2003 £'000 £'000 Reconciliation of operating profit to net cash inflow from operating activities Operating profit 1,145 1,304 Depreciation charge 196 207 Decrease in stocks 263 121 Decrease/(increase) in debtors 248 (273) Increase in creditors 44 417 ---------------------- Net cash inflow from operating activities 1,896 1,776 ====================== Cash flow statement ------------------- Net cash inflow from 1,896 1,776 operating activities Returns on investments and servicing of finance Interest received 120 57 Taxation Corporation tax (341) (218) Capital expenditure and financial investment Payments to acquire tangible (146) (127) fixed assets Equity dividends paid (406) (301) ---------------------- Increase in cash in the year 1,123 1,187 ====================== Maintel Holdings Plc Consolidated cash flow statement for the year ended 31 December 2004 (continued) Reconciliation of net cash flow to movement in net cash 2004 2003 £'000 £'000 Increase in cash in the year 1,123 1,187 Net cash at 1 January 2004 2,288 1,101 ---------------------- Net cash at 31 December 2004 3,411 2,288 ====================== 1. The abridged financial information set out above has been extracted from financial statements approved by the directors on 10 March 2005, which received an unqualified report by the Company's auditors, and which will be delivered to the Registrar of Companies following the Company's annual general meeting. The financial information does not constitute statutory accounts as defined in section 240 of the Companies Act 1985, and has been prepared on the basis of the accounting policies set out in the financial statements for the year ended 31 December 2003. 2. Earnings per share The calculation of basic earnings per share is based on a profit after tax of £795,000 (2003: £962,000) and a weighted average of 13,516,800 (2003: 13,516,800, restated for share split and bonus issue in 2004) shares in issue. The calculation of the adjusted earnings per share adds back the £309,000 cost of the Company's AIM listing to the £795,000 noted above. There are no share options in existence which would result in a dilution to basic earnings per share. 3. The annual report and accounts will be posted to shareholders on 25 March 2005 and copies will also be available on request from the Company's registered office at 61 Webber Street, London SE1 0RF. Ends This information is provided by RNS The company news service from the London Stock Exchange

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