Trading update
The Board expects the Company's results to be in line with market expectations. Our underlying trading performance has strengthened as the year progressed and we are beginning to see the benefits of our updated business strategy. Cash generation has again improved, with net debt reducing to £11.8m as at 31 May 2010 (31 May 2009: £15.5m).

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.

In its Interim Report for the half year to 30 November 2008, Maxima reported that the recession was causing difficult trading conditions.  Although trading in the Company’s third quarter has been in line with expectations, our budgets for the fourth quarter, our most significant trading period, now anticipate a slippage in performance.  This reflects an increased level of customer caution in our markets, delays in decision making and down-sizing of new business opportunities.  As a result, the Company now expects that the results for the year to 31 May 2009 will be below market expectations.

The Board is pleased to confirm that trading across the group remains steady and expects operating profits* for the first half to be slightly higher than last year.  Cash collection was good in the period; net debt was in line with plans at 30 November 2008 and is expected to fall in the second half. Maxima has a stable financial position and the Company continues to have the full support of its bankers, Barclays.

• Revenues up 47% to £46.7m (2007: £31.8m)
• Operating profit* up 54% to £9.7m (2007: £6.3m), giving an operating margin of 20.7% (2007: 19.7%)
• Profit before tax up 24% to £5.2m (2007: £4.2m)
• Net debt at 31 May 2008 of £8.5m, after net cash outflows on acquisitions of £6.1m
• Adjusted earnings per share* of 26.3p (2007: 25.9p)
• Final dividend of 3.6p per share proposed, making a total of 5.6p for the year (2007: 5.2p), up 8% * before exceptional items, share based payments and amortisation of intangibles

Maxima Holdings plc (AIM:MXM), the integrated IT solutions and managed services provider, is pleased to give an update on trading for its financial year ended 31 May 2008.

The Board is pleased to confirm that trading remains robust and expects profit before tax, amortisation of intangibles, exceptional items and share based payments to be in line with market expectations.   Net debt at 31 May 2008 was £8.5m.  Operating margin is expected to show a further improvement upon the prior year.