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Combination of issues hit Maintel numbers

The managed service specialist has given investors a sobering insight into the progress of the fiscal year in a trading statement

The last few financial updates from managed services player Maintel have seen the numbers bolstered by the impact of recent acquisitions.

The firm will not get that sort of coverage this time around in the trading statement ahead of the year ending, with a couple of contracts that had come with the Azzurri acquisition winding down more quickly than had been expected.

The two contracts had delivered higher margins than the Group usually enjoys and although they were always expected to go next year that migration process has been quicker and there will be less revenue from those customers in the second half of this year and the first half of next.

There were also problems associated with Avaya's slip into Chapter 11, with some customers delaying projects. Things are getting back on track for the vendor and the firm has seen a recovery this month but it has caused issues.

The final area highlighted for investors was the progress of the integration of Intrinsic Technology, with the firm being migrated onto a single system at the start of this month. Revenues from the firm have met expectations but gross margins have been lower than anticipated.

There were positives, with the firm heralding the progress it had made with its ICON cloud business.

"The Group’s ICON cloud services have continued to grow strongly in the second half of 2017, boosted by ongoing investment in the platform. The success in our ICON cloud business is very encouraging, as the Group continues to transform from a telecoms business to a fully managed service provider in the enterprise space," stated the firm.

Investors were also told that the next fiscal year should be better than 2017.

"Growth will be driven by improvements in trading conditions, a recovery in Avaya installations, continued growth in the ICON cloud business and additional cost cutting and synergy realisation across the business. The Board expect this recovery to accelerate into the first half of calendar year 2018," the firm stated.

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