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Maintel profit falls 18%; pays no dividend

By BFN News | 01:35 PM | Monday 01 June, 2020

Communications services provider Maintel booked an 18% fall in annual profit owing to a drop in support services revenue. Pre-tax profit for the year through December decreased to £1.8m, down from £2.2m on-year, as revenue slid 10% to £122.9m. The company paid no dividends for the year, having paid 19.5p per share in 2018. Chief executive Ioan MacRae said 2019 had been a challenging year for the company, with performance marred by delays to the award of public sector work and economic uncertainty. 'Whilst impacting our 2019 performance, we do not expect these same issues to impact in 2020 following the general election and resolution of the public sector procurement framework,' MacRae said. Still, he said the Covid-19 crisis had created more uncertainty for the business. 'While we saw some benefit in late the first quarter and early in the second assisting our customers with their response to the new working conditions, we have also seen some customers placing major projects on hold,' MacRae said. The company has had cut costs to preserve cash, including the furlough of a small number of staff and reduced working week for most back-office personnel. 'With the support of the board, we remain confident that our fast response and ongoing management of the coronavirus situation will leave the company well positioned when the economic impacts begin to recede,' MacRae said. At 1:35pm: (LON:MAI) Maintel Holdings PLC share price was +8p at 173p Story provided by

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