Maintel downgrades 2017 trading expectations

In a trading update for the year ending 31st December 2017 Maintel has downgraded expectations to recover the reduction in gross margin in the first half of this financial year.

The Board now expects adjusted EBITDA will be in the range of £12.5m to £13m.

Maintel said that following the Azzurri acquisition two large legacy contracts have migrated away more quickly than expected, with a knock-on effect of less revenue than originally anticipated.

The Managed Services and Technology performance has been adversely impacted by delays to customer installations as a result of the Avaya Chapter 11 process. However, now the bankruptcy court has approved Avaya's reorganisation on 28th November the Group reports that ordering activity started to recover.  

And following the Intrinsic Technology acquisition, revenue contribution is said to be in line with expectations at the time of the acquisition although the gross margins achieved have been lower than anticipated. 

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