Maxima Holdings plc : Unaudited Final Results for the Year Ended 31 May 2012

On 18 October 2011 our Board announced that it would dispose of non-core operating units of the group. Since then we have successfully disposed of five sub-divisions (of eight in total) of the Business Solutions division, as well as the Irish business which sat in the MSIA division. Further details are provided in the Chairman's statement below.

Financial Headlines - Continuing Operations

• Revenues of £28.2m (2011: £32.7m)
• Gross profit from continuing operations of £15.7m or 56% of revenue (2011: £20.2m, 62% of revenue)
• Adjusted operating profit from continuing operations of £1.3m* (2011: £3.0m*)
• Adjusted profit before tax from continuing operations of £0.7m* (2011: £2.4m*)
• Loss before tax from continuing operations of £6.6m (2011: Loss £7.8m) after £0.6m (2011: £1.2m) of exceptional items and £5.4m (2011: £7.1m) goodwill impairment charge
• Adjusted basic earnings per share 1.5p* (2011: 7.3p*); basic loss per share 25.1p (2011: 33.9p)
• Year end net debt reduced to £3.9m (31 May 2011: £10.5m)
• Net cash flow from continuing operating activities was £1.4m (2011: £2.9m)

(* Before amortisation of intangibles, impairment of goodwill, share-based payments and exceptional charges)

Other Highlights

• Five sub-divisions of the Business Solutions division and the Irish managed services subsidiary disposed of, leaving our UK managed services business as the core asset
• Cheltenham onerous property lease surrendered and central infrastructure costs reduced
• Offer received from Redstone PLC, separately announced today, for the acquisition of the Group at 28 new Redstone PLC shares for each Maxima share

Commenting on the results, Michael Brooke, Senior Independent Director, said:

"After nine months of intensive corporate activity, the company has reached a crossroads resulting in an offer for the company from Redstone PLC. The fact that the Group has remained profitable on an adjusted basis is a testament to management and staff and it was also pleasing to see signs of growth in some of the areas we are focussed upon. However, the result of the downsizing brought on by the need to reduce debt, coupled with the overall reduction in the size of the Group after disposals and the fall in the revenue base, means that some further overhead cost reductions, with corresponding upfront costs, will be needed. The Board has therefore concluded that the remainder of the Group would be better served as an integral element of a similar company with a similar focus, providing the opportunity and cash resources to finance this restructuring."

Enquiries:

Maxima Holdings plc
Ian Smith                
Executive Chairman        
Tel: +44 (0)118 923 5150        

David Memory    
Chief Finance Officer
Tel: +44 (0) 118 923 5150    

Michael Brooke
Senior Independent Director
Tel: +44 (0) 118 923 5150    

Cenkos (Nominated advisor to the Company)
Stephen Keys / Adrian Hargrave
Tel: +44 (0)20 7397 8900

MHP Communications
Reg Hoare / Vicky Watkins
Tel: +44 (0)20 3128 8100

Notes to Editors:

Maxima (AIM:MXM) is a leading provider of IT business systems and managed services, helps organisations to increase their productivity, reduce their business costs and streamline their processes. The company's IT Managed Services operations support all aspects of cloud computing delivery, including Infrastructure as a Service and Software as a Service capabilities. Core Maxima services include virtualisation, web connectivity, application management, infrastructure management & IT outsourcing. For more information, please visit www.maxima.co.

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