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14 July 2009

Maxima Holdings plc ('Maxima' or the 'Company') 

Year End Trading Update

Maxima plc (AIM:MXM),  the IT business systems and managed services company, today announces a trading update for its financial year ended 31 May 2009. 

The Board is pleased to confirm that trading across the group remains steady and expects revenues and operating profits* to be in line with market expectations. Net debt at 31 May 2009 was £15.5m, slightly lower than expected having been reduced from £17.3m at the half year end, 30 November 2008. After scheduled repayments made during the year, total bank facilities currently available are £18.75m.

Following recent management changes a full structural and financial review is being undertaken, the results of which will be outlined in the Preliminary Results on 4 August 2009. In respect of this, it has been prudently decided to make provisions for certain exceptional costs, including re-organisation costs. In addition, under IFRS, a full review of the carrying value of intangible assets is being carried out, taking account of current and anticipated market conditions and the weighted average cost of capital. It is expected that this will result in some impairment charges. These charges are expected to be largely non-cash items, although they are likely to result in an overall statutory loss being reported for the year.

Maxima continues to derive more than half of its revenues from recurring managed service and support contracts and has achieved high levels of contract renewals. The Company also continues to win and bid for significant new business with a total of 87 new clients having been won during the year (2008: 76).  

Maxima will announce its preliminary results for the full year, together with details of the proposed final dividend, on 4 August 2009.

*pre amortisation/impairment of intangibles, share-based payments and exceptional charges

Kelvin Harrison, Maxima's Chairman said: 

'This has been a year of major change for Maxima, against a backdrop of difficult market conditions, however we have continued to deliver strong operating profit margins. I am confident that the changes in business focus, direction and organisation introduced by the new CEO Graham Kingsmill, position us well for sustained organic growth.'

  For further information, please contact:

Maxima Graham Kingsmill, Chief Executive David Memory, Group Finance Director	01242 211211 01242 211211
Cenkos Stephen Keys/Adrian Hargrave	020 7397 8900
Smithfield Reg Hoare / Tania Wild / Will Henderson	020 7360 4900

Notes to editors:

Maxima Holdings plc floated on AIM in November 2004 at an issue price of 110p. It was established to acquire businesses supplying IT solutions and services, with the objective of building a focused IT services group. The business implements and supports enterprise software solutions for mid-sized, UK-based manufacturing, distribution and service organisations. These solutions are based upon leading software suites as well as products developed in-house.

Maxima has become an IT systems integration and managed services company with a proven track record of delivering innovative and flexible IT solutions and services. Maxima's in-depth knowledge of industry and business, coupled with its skills and understanding of leading software suites such as Oracle, Microsoft, Citrix and SAP ensures its solutions and services deliver real business benefits. The group prides itself on the quality of its service, which leads to strong customer relationships and high retention rates.

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