"Maintel interims are in line with materially unchanged expectations, with progress in the integration of Azzurri (acquisition completed May 4th) in terms of new contract wins and delivery of cost synergies. Challenges in the Maintel Managed Service business focused around three large contract wins expected earlier than their eventual June confirmation, which has led to a mild 2% trim to revenue but no change to EBITDA due to better than expected cost control. Strategic review of the Mobile business has led to a proactive 10% churn to the customer base, away from the SOHO and SME base, in turn leading to additional savings. EBITDA and cash generation remain on track with both a strong backlog and strong pipeline, leading to confidence in FY forecasts."
Adjusted diluted eps of 34.1p is a good result .
Mai is a classic undervalued stock that is in a forgotten corner. Thats our advantage.I suspect it will continue to use its excess cash-flow wisely by buying market share and growing earnings. When it gets to £10m earnings it may start to get the recognition it deserves.While its below the radar its worth filling your boots . I just checked the return on assets -135% -rather good!
In the meantime I will relax on the increasing divis.(up 22%)
your much cleverer than me.When I trade i loose out.I have to buy low, and wait.i don't care if mantel fall another 30% .I will simply buy more because they are a v.high return on equity business throwing off cash which is being used to grow the business.
I see you like PAF too.anyone that sells Paf now must be stupid.with the massively earnings enhancing acquisition and the prospect of EPS of over 5 seems a bit of a no-brainer.
By the way you should buy some AAZ -another great miner seriously undervalued and growing v.nicely.Saw them present at Proactive a month ago and was v impressed.
I am bearish on the market as a whole and have decided to sell a variety of my shares in anticipation of a broader sell off and better opportunity to pick up stocks cheaply. I was in two minds about Maintel but was conscious of possibly holding onto to a loser so decided to sell.
not quite sure why james because theres nothing to suggest that Maintel aren't continuing to grow sales and profits. They are cheap on perspective pe of 9.4 x and eps of 35.50 .someone will wake up to them eventually.In the meantime ill just pick up their growing divis.
Fully agree James.They wouldn't pay £7m (big deal for them) unless they are pretty damned sure they could add value and grow the sales. They are putting in the management to make that happen.
V.exciting times methinks.Just think how well they could do if we weren't in recession!
Solid results from Maintel. Group revenue up 6% and dividend up by 37%! However the revenue growth was largely driven by the Totility acquisition so underlying growth is broadly flat.
Adjusted profit before tax up 38% at £2.35m with organic growth of 10%. Unadjusted profit before tax was £0.19m after the expensing of acquisition consideration of £1.79m, compared with unadjusted profit of £1.59m in H1 2011.
Adjusted earnings per share up 39% at 16.6p before adjustment for the expensing of the acquisition consideration, the income statement shows a loss per share of 2.8p (H1 2011 unadjusted earnings per share of 10.9p)
The Totality acquisition has impacted the bottom line in H1 but this is a one-off factor and the increased dividend hopefully indicates that management is confident of continued future profitability and growth. The additional payment of £3.1m is due in H2 and under accounting standards this amount is charged to the income statement over the earnout period as employee costs, rather than being treated as deferred consideration on acquisition, with a consequent charge to the income statement of £1.789m in the period.
The headline EPS being negative probably wont give the share price a lift but the dividend hike is very good news. These extra costs are acquisition costs but instead of being earned over a number of years and being expensed in year one, presumably due to the nature of the agreement (i.e. being variable and dependant on performance and continued employment by one of the founders.
The opportunity is in cross selling mobile service to the existing Maintel customer base. I have no idea how successful this will be but you have to trust that the directors do and believe this to be a profitable in the future.
Thanks for the info re director sales, I thought that it would be a chunk of shares coming onto the market but good to have this confirmed. I have noticed that illiquid small caps can move massively like that for no apparent reason at the time. Glad I topped up.
I am on a much smaller scale to you (currently ) but its good to hear you are also invest in PAF, another cracker IMHO. Have you had a look at SpaceandPeople?
I hold Paf and Mai too.
Mai is weak because the sales director ( major shareholder) sold a large block near a record price.
Since the chairman is the largest shareholder and since he was happy to lend to Mai I'm quite relaxed.
I just wish there was a larger float because trying to build up a £50-100k position is painful.
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