Maxima Holdings plc

Half Year Trading Update

Notice of Results

Maxima Holdings plc ("Maxima" or "the Company"), the IT business systems and managed services company, today announces a trading update for the half year ended 30 November 2009 and its notice of results. 

The second quarter has seen improved sales performance including new customer wins such as npower, whose subsidiary SPI Ltd committed to an implementation of Maxima's Contract Management Application based on the Microsoft Dynamics AX software. In addition, two of Maxima's largest customers have committed to multi-year contract renewals, together valued in excess of £6.5m. As well as this, focused activity in relation to Maxima's virtualisation expert services has resulted in a number of contract wins including a major Citrix project with insurance service provider Towergate.

Dialogue with QAD has continued following the news that the long-standing distribution agreement will not be renewed in January 2010. Priority has been given to the interests of customers who in many cases use Maxima products and services in addition and unrelated to QAD, enabling Maxima to retain and grow ongoing business opportunities. Reductions to our cost base have been made to take account of this change and overall market conditions.

Trading is in line with current market expectations for the financial year as a whole. The Company is pleased to report good cash generation and as a result has reduced net debt to £13.5m as at 30 November 2009 (31 May 2009: £15.5m).  

Maxima will announce its half yearly report for the six months ended 30 November 2009 on 2 February 2010. A further update on current trading will be provided at that time.

Maxima CEO Graham Kingsmill said:

"We continue to make pleasing progress with our plan to simplify and focus the organisational structure of Maxima in order to offer more concentrated value to customers. We also continue to attract attention from the major technology providers, eager to gain access to Maxima's substantial customer base."

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