Maintel Share Discussion Threads

[01283] 13/9/2007 14:14

Well Interims look good to me!

Anyone else watching this stock?

[blank frank] 18/3/2007 16:33

12/03/07 07:02 UKREG Final Results

Maintel Holdings Plc

Preliminary results for the year ended 31 December 2006

Maintel Holdings Plc, the telecoms services company, announces preliminary
results for the year ended 31 December 2006.

Financial highlights

Turnover up 33% to #16.166m (2005: #12.197m) with underlying growth across the
group, supplemented by #1.1m London Probation Board VoIP contract announced in
February 2006

Voice and data division gross profit grown by 38% over 2005

Profit before tax and amortisation of goodwill up 16% to #2.202m (2005: #1.904m)

Earnings per share before amortisation of goodwill up 24% to 12.4p (2005:
10.0p). After amortisation, earnings per share increased by 14%, to 11.4p (2005:
10.0p)

Interim dividend of 2.1p per share paid in September; final dividend of 2.9p per
share proposed

Cash balances at year-end of #2.234m (2005: #3.625m), after acquisition of
District Group for net #877,000, share buy-backs costing #832,000 and dividend
payments of #591,000

Operational highlights

Investment in sales and account management resulting in increased equipment
sales including large scale VoIP equipment sales into existing customers
including the London Probation Board project

Enhanced network services portfolio has resulted in significant growth in the
voice and data division

Contracted maintenance revenues running at record levels, following the signing
of a number of larger new contracts, and the acquisition of District Holdings
Limited

Efficient integration of District Holdings Limited, acquired in June 2006

John Booth, Chairman, said:

"Our planned focus on top line sales has boosted turnover and contributed to
strong earnings per share growth for the year. 2006's investment in sales and
engineering capacity, combined with the District acquisition enable us to embark
with confidence on 2007 as a larger and stronger presence in our industry." ...

[miata] 25/1/2007 11:01

---- Telephone Maintenance Group PLC (TEL) said trading in its shares on
AIM have been suspended, pending clarification of its financial position, but
added full-year losses might be as high as 2.2 mln stg and not 1 mln stg as
predicted on Monday. The company said non-executive directors Frank Lewis and Jim McLaughlin have resigned with immediate effect, because they believe they have been misinformed about the company's financial position. The 2.2 mln loss includes trading losses of 1.4 mln stg.

[miata] 12/1/2007 08:48

The requirement for a maintenance contract (as laid down in the 1984 Act) remains, all de-regulation in 1996 did was widen the user's choice of maintainers (no requirement for them to be Oftel approved).

The door was not opened for Maintel in 1996 as it had been doing this since 1991.

[topstar] 11/1/2007 21:15

Hi Blank Frank, thanks for this.

I've done some checking, as I was surprised to read this. My understanding from the OFCOM website is that the de-regulation in 1996 REMOVED the requirement for a maintenance contract. Your quote above could also be interpreted that way.

"[Sept '96] Oftel announced the end of the "designated maintainer" regime – Oftel will no longer formally approve those who provide maintenance services, or register installers and maintainers to provide connection services, and customers whose telephone systems include private switching systems are no longer required to enter into a contract with an Oftel approved maintainer for their system maintenance."


There's further clarification at

and


This enabled businesses to make their own arrangements, and choose whether or not to have a maintenance contract at all. It also opened up the door to new companies like TEL and MAI, as now anyone can play.

Hope this clarifies.

[blank frank] 10/1/2007 18:12

Topstar,

The following document, which I have previously posted on another thread, gives some more details:-

TELEPHONE MAINTENANCE GROUP PLC

AIM ADMISSION PROSPECTUS DATED 24 SEPTEMBER 2004

... PART I
INFORMATION ON THE GROUP

1. Introduction

The Group was established in July 1997 to supply telephone maintenance services to business users, taking advantage of de regulation by OFTEL in 1996 whereby every business user had to have a maintenance contract by law with one of a restricted number of maintenance providers. ...

[topstar] 29/12/2006 20:32

Blank Frank, you mention that " Businesses are required to have a telephone maintenance contract by law".

Can you please give us more details on that? Specifically, what law requires this?

TIA

[blank frank] 17/9/2006 21:07

Please note the following new thread which may be of interest:
"Telecom Shares You Should Buy: The Tips League Table"

[miata] 08/9/2006 18:56

PBT at £0.965m up marginally from £0.950m the year before. Higher turnover but with much higher costs, gross margin fell to 39% from 42% and admin expenses rose 16%.
Debtors up 50% (bad debts are a problem in this type of business).

Shareprice helped by a 40% increase in the interim dividend and the positive outlook for maintenance income in the second half.

[blank frank] 08/9/2006 18:13

Yesterday the interim results of Maintel (MAI) were announced, which were good. Here are some key extracts:-

07/09/06 07:01 UKREG Interim Results
Maintel Holdings Plc
Interim results for the six months to 30 June 2006

"Financial highlights
Turnover up 20% at #7.063m (2005: #5.901m), with underlying growth across the
group, supplemented by #266,000 of the London Probation Board VoIP contract
announced in February 2006
Voice and data division gross profit grown by 40% over 2005 H1
Earnings per share before amortisation of goodwill of 5.3p (2005: 5.0p); after
amortisation, earnings per share were 5.1p (2005: 5.0p)
Interim dividend proposed of 2.1p per share (2005: 1.5p)
Cash balances at 30 June 2006 of #3.573m (31 December 2005: #3.625m)

Operational highlights
Enhanced network services portfolio has resulted in significant growth in the
voice and data division
Contracted maintenance revenues running at record levels, following the signing
of a number of larger new contracts, and the acquisition of District Holdings
Limited
Significant VoIP equipment sales into existing customers including the London
Probation Board project
District Holdings Limited acquired in June 2006 for #1.060m cash, including
transaction costs

... Growth was particularly strong in our voice and data business where turnover was up 60% ...

... The growth in the division's revenues - up 12% from the equivalent period last
year, at #5.5m - came predominantly from VoIP equipment sales and installations
as we upgrade many of our existing customers with new technology. ...

... Maintel's business model remains robust, providing a premium service to its
increasing customer base and up-selling new technologies through our account
management team. ...

... the anticipated benefits of being able to offer a more comprehensive telecoms package are being seen, with more customers taking more than one service from Maintel. ...

... District's directors left the group on acquisition and the group's
remaining property leases expire at the end of 2006, so significant cost savings
are expected going forward from these and other synergies.
The District acquisition will primarily provide a fresh base of over 400
established customers into which to sell additional services, whilst increasing
the recurring revenue platform of the Group. ... "



The results seem to have gone down well with the market: MAI rose 5.5p yesterday to 173.5p, and a further 3p today to 176.5p.

[miata] 13/3/2006 16:08

Following the loss of two very large voice and data customers last year,
which Maintel has already announced, growth in the division is "satisfactory".

Competition in this business is strong but the margins are high.

[scumdog] 13/3/2006 15:52

Excellent customer service is the key to this business.
If they can maintain customer satisfaction at high levels they will retain existing business, generate new business from recommendations and maybe able to charge a slight premium.

[scumdog] 13/3/2006 15:42

The comments of david77 in post 4 above are spot on - re growth prospects and share illiquidity. However, the company does seem to be well managed and takes seriously shareholders' interests - evidenced by dividend policy and share buy backs. Tempted.

[miata] 22/2/2006 07:59

Maintel wins £2.8m contract with the London Probation Board to supply, install and maintain a network of Nortel IP voice and data systems across 70 sites throughout Greater London and will replace existing technologies through 2006 and maintain all equipment under a five year contract.

For 2006, Maintel expect to receive £1.45m of revenue for the supply and
installation phase with ongoing annual income estimated at £330k.


Maintel 61 Webber Street, London SE1 0RF

[masurenguy] 22/1/2006 10:27

Their share price has grown by 50% since their AIM float in Dec 2004. Over the last 8 months they have also commenced a share buyback programme and during that period they have bought and cancelled 579,000 shares or 4.3% of the total; shares in issue since their flotation. Couple of small director purchases (10k & 7k) recently.

Interim profits up 21% on flat sales due to cost cutting. Projecting second half sales growth in their September Interim statement and pledging a 40% distribution of after tax profits to shareholders. Current PEG of around 0.7 suggests further upside potential in the share price as long as the bottom line is enhanced by sales growth in the second half.

On my watch list !

[blank frank] 21/1/2006 18:23

I bought into Maintel this week; it looks like a well-run and efficient growth company on an inexpensive rating, and the recent director share buying has been encouraging.

This complements my holding in Telephone Maintenance Group, which looks like a very similar company, but at an earlier stage.

B.F.

[dk37] 11/3/2005 11:34

David,
Many thanks, the stock would seem to be well underpinned on a prospective p/e of around 10x and a yield of 3%ish, not bad for an aim stock growing at mid to high teens%.

[penpont] 03/2/2005 08:28

Has this been written up anywhere recently?

[ben gunn] 21/1/2005 16:06

Time to look at this more closely.

[penpont] 31/12/2004 11:29

Maintel, which provides service and support for telecoms networks in the UK as well as having a smaller business in selling voice and data services, came on to the Aim a few days before Xmas. It is currently capped at around 15m

It looks a potential high growth company with a decent record of profitability and even the chance of a reasonable dividend - all quite unusual for a telecoms related newcomer. It has recently been tipped in the S Tel and is today featured on citywire as an interesting new issue.

Not a lot of info other than the Tele and citywire stuff is available but some main points from these sources are:

-Profitable since 1996 and has, acc to S Tel, shown ' an ability steadily to increase revenues'.

-Profits of £1.35m last year acc to citywire ( assume this is to Dec 03), and has made £784k in first half this year. Has shown profit growth of 34-40% pa. since 2001.

-Has 'pledged to return 40 per cent of profits to shareholders in dividends' (source - S. Tel). By my calcs they should make at least 10p eps and therefore pay 4p divi this year.

A current PE of around 10 ( again my own guesstimate, as Peel Hunt don't seem to have published a forecast yet) dosen't look demanding given the above info, though I have requested the IPO docs for more backround details.

Certainly looks one to watch for the meantime.

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