Profits were down for the first six months of the year for IT and communications managed service provider AdEPT.
For the period ended 30 September 2022, the firm said organic growth in managed services continued to replace traditional telephony business, with 115 new contract wins overall.
Group revenue went down though to £34.2m from the £34.3 million generated for the same period last year.
There was organic growth of 3% in Cloud Centric Strategic Services, with revenue increasing by £500,000 to £15.1m.
Managed services revenue grew organically by 3%, increasing to 89% of group revenue, “offsetting the structural decline in revenue from legacy traditional telephony, from which the group continues to move away”, said the firm.
Underlying EBITDA was £5.4m, down from £5.7m previously. The underlying EBITDA margin fell to 15.9% from 16.7%).
Adjusted profit after tax dropped to £3m from £3.1m, and the adjusted fully diluted EPS was 12.1p (12.5p last time).
The share price went down over 8% after the results were posted.