Shares in Maintel sunk as much as 16% in early London trade after the cloud, network and communications services firm warned on forthcoming regulatory headwinds.
The London and Blackburn-based business said the termination of several customer contracts as well as tax hikes announced by chancellor Rachel Reeves in November were putting added pressure on the business.
Maintel said it expected to report a 3.4% full in revenues in 2024 to £97.9m, though adjusted earnings would rise around 15% to £10.5m. Revenues in 2025 were expected to nudge up slightly back to 2023 levels.
Maintel said in a statement: “Although encouraging progress has been made across all aspects of the business, and the Board is confident that the strategic pivot being implemented well-positions the company for the future, Maintel does face headwinds in the coming year.
“These include an increase in employer related costs, including the changes announced in the government’s Autumn budget [and] a small number of significant customer contracts ended in 2024.”
The company cheered a number of major contract wins during the year, which include a Global IT and business consulting services company and the Leeds Teaching Hospital NHS Trust, one of the largest and busiest acute hospital trusts. The firm also underwent a rebrand in November.
Interim CEO Dan Davies said: “I am delighted with the progress we have made in 2024 against our transformation plan, strategically pivoting from a generalist to a highly skilled specialist.
“The relaunch of our brand in November has successfully framed our strategy for our people, our customers and our prospects.”
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