RNS Number:2854N
Maxima Holdings PLC
05 February 2008
Embargoed until 0700 Tuesday 5 February 2008
Maxima Holdings plc
('Maxima' or the 'Company')
Interim results for the six months ended 30 November 2007
Maxima Holdings plc (AIM:MXM), the acquisitive IT solutions and managed services
group, is pleased to announce its unaudited interim results for the six months
ended 30 November 2007.
Financial Highlights:
* Revenue up 62% to �21.1 million (H1 2007: �13.0 million)
* Recurring revenues represent 56% of total revenues
* Operating profit* up 74% to �4.0million (H1 2007 �2.3million)
* Profit before tax up 43% to �2.0 million (H1 2007 �1.4 million)
* Adjusted*, fully diluted earnings per share up 16% to 10.2p (H1 2007:
8.8p)
* Dividend of 2.0p per share (H1 2007: 1.8p) - in line with progressive
dividend policy
*pre-amortisation of intangibles, share based payments and exceptional charges
Operational Highlights:
* Appointment of Chief Operations Officer, Boris Huard
* 35 new clients won during the period, across all business areas
* Good progress on our Microsoft Dynamics AX solution for the construction
and facilities management sector with 8 sales to date
* Acquisition in July 2007 of Centric Networks Ltd, Infrastructure Managed
Services provider for �6.4million (gross maximum)
Commenting on the results, Mike Brooke, Chairman, said: "The business has always
exhibited seasonality, resulting in a stronger second half. This trend continues
and our second half will also benefit from contributions from the acquisitions
made in July and December 2007. As announced in the trading update issued on 28
January 2008, we have experienced an increased level of caution in our markets,
however we continue to win new business across the group. We are confident that
the diversity and spread of our offerings and client base, together with our
strong operational management and sales organisation, position us well. Our high
level of cash conversion and recurring revenues also give us the robust
financial foundations from which to achieve our objectives for the future."
Enquiries:
Maxima
Kelvin Harrison, Chief Executive 01242 211211
Linda Andrews, Group Finance Director 0141 880 1000
Cenkos Securities plc
Stephen Keys 020 7397 8900
Smithfield
Tania Wild/Reg Hoare 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 managed
services, with the objective of building a focused IT services group. On
flotation it immediately acquired Azur Holdings Ltd, bringing together a
management team with the skill, experience and incentive to deliver significant
shareholder value, through a combination of acquisitive and organic growth. The
business implements and supports enterprise and infrastructure 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.
It has since made a further ten acquisitions:
* August 2005 - Ringwood Group plc, a specialist in content and document
management solutions, based on Microsoft technologies;
* September 2005 - Hanston Technology Partners Ltd, a fast growing managed
services business providing applications support and consultancy services to
Oracle users;
* January 2006 - The MFG/PRO business of Seabrook Research Ltd, the sole
Irish distributor of MFG/PRO, a manufacturing package for which Maxima was
already the sole UK distributor;
* May 2006 - QED Business Systems Ltd, which provides managed services for
critical mainframe and mid-range computer systems and applications software;
* October 2006 - Cognition Solutions Ltd, provider of enterprise software
solutions to the construction and facilities management sector; and
* November 2006 - IIL (Intertech Solutions Ireland) Ltd, which provides IT
infrastructure solutions and managed services based upon Citrix
technologies; and
* March 2007 - SevenThree Ltd, supplier of customer relationship management
software solutions to the construction sector
* May 2007 - 3net Limited, an IT Services business, providing consultancy,
solutions delivery and managed services in networking and security
infrastructure
* July 2007 - Centric Networks Ltd, which provides managed services for
infrastructure software to a broad range of clients in the mid-market.
* January 2008 - Eclectic Group Limited, which supplies software,
consultancy, support and training in the areas of Business Intelligence and
Corporate Performance Management (CPM).
Maxima has grown to 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 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.
Interim results for the six months ended 30 November 2007
Chairman's Statement
Introduction
I am pleased to report good interim results, demonstrating that Maxima is
continuing to successfully execute its consolidation strategy in the Software
and IT Services Sector.
Organic growth continues as the Company realises the benefits of integration of
its carefully selected acquisitions. During the period we acquired Centric
Networks Ltd, a specialist IT infrastructure managed services provider, which is
being integrated with Intertech and 3net (which were acquired in the prior
year). Maxima now has a complete offering of IT solutions and managed services
across business applications, information management and systems infrastructure
software; a business model that we believe is capable of delivering growth
faster than the market as a whole.
Management
We were pleased to welcome Boris Huard onto the board in October 2007 as Chief
Operating Officer. After a comprehensive induction programme, Boris has now
assumed full operational responsibilities for our integrated sales and
specialist project and support teams. These teams are the force behind our
business and I should like to thank them and our finance and administration
staff for their continued commitment and professionalism.
Dividends
Maxima has a declared policy of returning a proportion of operating profits to
shareholders as a dividend, whilst prudently conserving cash to finance
acquisitions and investment. I am pleased to announce that in line with this
progressive policy an interim dividend of 2.0p per share (H1 2007: 1.8p) will be
paid on 13 May 2008 to shareholders on the register on 11 April 2008.
Outlook
The business has always exhibited seasonality, resulting in a stronger second
half. This trend continues and our second half will also benefit from
contributions from the acquisitions made in July and December 2007. As announced
in the trading update issued on 28 January 2008, we have experienced an
increased level of caution in our markets, however we continue to win new
business across the group. We are confident that the diversity and spread of our
offerings and client base, together with our strong operational management and
sales organisation, position us well. Our high level of cash conversion and
recurring revenues also give us the robust financial foundations from which to
achieve our objectives for the future.
Michael Brooke 5 February 2008
Chairman
Interim results for the six months ended 30 November 2007
Chief Executive's Review
Introduction
Maxima continues to develop its offering and its internal structure and
processes. We offer IT solutions and managed services across the three main
sectors of the software industry: Business Applications, Information Management
and Systems Infrastructure. We have strengthened senior management, integrated
our Marketing and Sales activities at group level and merged some of the
specialist teams within our two delivery divisions. Good growth continues and we
made one acquisition during the period which increased our scale in Systems
Infrastructure managed services. We now have some 400 staff operating from 12
offices across the UK, plus one in Ireland and one in the USA. We serve well
over 1,000 clients, primarily medium-sized UK-based industrial organisations
with turnover of between �5m and �500m. Critically, our support services are
provided on a fully staffed 24x7 basis supporting client sites around the clock
and around the globe.
Market Conditions
Sector analysts Ovum are predicting a softening of growth in the �8bn UK IT
project services market in 2008 to 5.1% (2007: 6%) and in the �5.4bn UK software
market to 6.2% (2007: 9.4%). Within the software market, Systems Infrastructure
is predicted to grow at 5%, Business Applications at 7% and Information
Management at 8%.
(Source: Ovum Market Trends January 2008). We believe that current uncertainties
in the financial markets will have repercussions across most market sectors and
current behaviour of our clients indicates that these growth rates may prove to
be optimistic.
Merger and acquisition activity in the sector fell slightly in 2007 with 3,215
European technology deals being reported in 2007 compared with 3,295 in 2006. It
is predicted that deal flow will remain at healthy levels in 2008 perhaps with
some tailing off as the year progresses. (Source: Regent Associates: January
2008).
Operating Review
Our objective is to foresee and direct our resources to match these market
conditions. This being in terms of:
a) R & D investment: our biggest single investment continues to be development
of an enterprise software solution for the construction and facilities
management sector based upon Microsoft's flagship Dynamics AX technology. This
solution will be formally launched in June 2008, however we have already made 8
sales to existing and new clients. In Information Management we continue to
invest in and build our Microsoft Sharepoint business and have launched a
Compliance Portal which combines Sharepoint technology with some of our
established proprietary document management products.
b) Marketing and Sales: over the course of the first half year we held 30 events
for existing and prospective clients at which we showcased the various offerings
which make up our total proposition in Business Applications, Information
Management and Systems Infrastructure. These events are usually held in
conjunction with our partners such as Citrix and QAD and we have 32 further
events planned for the second half year.
c) Skills development: we continue to build our skills base by a combination of
cross-training and specialist recruitment. In particular we have been investing
in building skills in Microsoft Dynamics AX, Sharepoint and Services Oriented
Architecture (SOA).
d) M & A: we continue to source numerous acquisition opportunities and are able
to quickly filter these and only engage with those that offer exceptional fit
and value. We then have the experience to efficiently complete the chosen
transactions and integrate the businesses to deliver rapid earnings enhancement.
Maxima continues to have high visibility of future revenues with 56% recurring
revenues from support and managed services in the period, high levels of repeat
business and a good order book for solutions business. We have a low dependence
on software license revenues (7% in the period). Also, as a result of
cross-training we are able to flex our labour force in response to evolving
market opportunities.
Our two operating divisions, Maxima Solutions and Maxima Managed Services, have
both grown organically winning significant new clients. They operate common
processes, share central support functions and cooperate closely with each other
in delivery.
Maxima Solutions won 19 new clients in the period as well as significant repeat
business from existing clients. 8 of these were for solutions based upon SAP
Business One. We also continued to win new clients for many of the established
products based upon our own IPR. In 2007 we were awarded a "supplier of the
year" award from Alliance Boots for the rapid successful implementation of QAD
Applications software (a contract win announced with our preliminary results
last August). Our business in Content Management, Customer Relationship
Management (CRM) and, since the period end with the acquisition of Eclectic,
Business Intelligence are being merged into an Information Management practice
with great opportunities for cross-selling into other parts of our client-base.
Maxima Managed Services won 16 new clients during the period, as well as high
levels of repeat business from existing customers. The Business Applications
support team which focuses on Oracle and IBM mainframe technologies continues to
stay abreast of technology developments e.g. we were one of the first to
implement Oracle Simply HR on a Windows platform for a major insurance company.
The Systems Infrastructure project and support teams which joined us with the
acquisitions of Intertech (November 2006), 3net (May 2007) and Centric (July
2007) are being integrated. In this business area, all major managed service
contracts that have come up for renewal have been extended. We are also pleased
to report that we have consistently exceeded the demanding contractual service
levels on the Euro4million, 4-year, 24x7 managed service contract for a major
petro-chemical project won in December 2006.
Whether on project work or on managed service contracts, the key to our success
is to provide exemplary levels of customer service, leading to high customer
retention. This is all down to the commitment of our staff and once again, we
should like to thank them for their conscientious and loyal support.
Financial Results in Summary
The Group has continued to trade well, with revenues, profits and adjusted
earnings per share all substantially increased from the first half of the prior
year. Seasonality has historically resulted in a much stronger second half-year
and this trend is expected to continue.
* Revenues for the 6 month period have risen 62% to �21.1m (H1 2007:
�13.0m). The acquisition made during the period contributed revenues of
�1.7m.
* Gross profit increased 52% to �15.4m (H1 2007: �10.1m)
* Operating profit increased by 74% to �4.0m* (H1 2007: �2.3m*). This is
largely attributable to the benefits of scale as the various acquired
businesses share central functions such as finance, administration, human
resources, technical infrastructure, quality assurance and marketing.
* Utilisation amongst fee-earning staff remained strong at 76%
* Profit before tax increased by 43% to �2.0m (H1 2007: �1.4m)
* Adjusted fully diluted earnings per share increased by 16% to 10.2p* (H1
2007: 8.8p*)
* Operating cash flow was �2.1m (H1 2007:� 0.7m)
* The Group had net debt of �9.3m at the end of the period, having spent
�3.3m net and issued 485,123 new shares to finance the acquisition of
Centric in July 2007
* Net interest costs in the period totalled �0.4m, covered 10 times by
operating profit*
(*before amortisation of intangibles, share-based payments and exceptional
charges)
Kelvin Harrison 5 February 2008
Chief Executive Officer
Independent Review Report to Maxima Holdings plc
Introduction
We have been instructed by the Company to review the financial information for
the six months ended 30 November 2007 which comprises the consolidated interim
income statement, consolidated interim balance sheet, consolidated interim
cashflow statement, consolidated interim statement of recognised income and
expense and the related notes 1 to 9 set out on pages 6 to 13. We have read the
other information contained in the interim report which comprises only the
highlights, the Chairman's statement and the Chief Executive's review, and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
This report is made solely to the company in accordance with International
Standard on Review Engagements (UK & Ireland) 2410 'Review of Interim Financial
Information Performed by the Independent Auditor of the Entity'. Our review work
has been undertaken so that we might state to the Company those matters we are
required to state to them in a review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company, for our review work, for this report, or for the
conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The AIM rules of the London Stock Exchange require that the
accounting policies and presentation applied to the interim figures are
consistent with those which will be adopted in the annual accounts having regard
to the accounting standards applicable for such accounts.
As disclosed in Note 1, the interim financial statements of the group are
prepared in accordance with the accounting policies which will be adopted in the
financial statements for the year ending 31 May 2008.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the financial information in the half-yearly
financial report for the six months ended 30 November 2007 is not prepared, in
all material respects, in accordance
with the basis of accounting described in Note 1.
GRANT THORNTON UK LLP
CHARTERED ACCOUNTANTS
GLASGOW
5 February 2008
The maintenance and integrity of the Maxima Holdings plc website is the
responsibility of the Directors: the interim review does not involve
consideration of these matters and, accordingly, the company's reporting
accountants accept no responsibility for any changes that may have occurred to
the interim report since it was initially presented on the website. Legislation
in the United Kingdom governing the preparation and dissemination of the interim
report differ from legislation in other jurisdictions.
Maxima Holdings plc
Consolidated Interim Income Statement
Notes (Unaudited) (Unaudited) (Audited)
Six months to Six months to Year to
30 November 30 November 31 May
2007 2006 2007
�'000 �'000 �'000
Revenue 2 21,075 13,028 31,767
Cost of sales (5,672) (2,891) (7,838)
--------- --------- ----------
Gross profit 15,403 10,137 23,929
Administration expenses (11,414) (7,880) (17,677)
Amortisation of
intangibles (1,597) (602) (1,426)
Share based payments (64) (79) (134)
Exceptional items - (87) (87)
--------- --------- ----------
Operating profit 2,328 1,489 4,605
Finance income 70 60 84
Finance costs (439) (198) (507)
--------- --------- ----------
Profit before income tax 1,959 1,351 4,182
Tax expense, net (498) (393) (822)
--------- --------- ----------
Profit for the period 1,461 958 3,360
========= ========= ==========
Earnings per share 3
Basic earnings per
share (pence) 5.9p 5.8p 19.2p
Diluted earnings per
share (pence) 5.8p 5.7p 18.7p
Consolidated Interim Statement of Recognised Income & Expense
for the six months ended 30 November 2007
(Unaudited) (Unaudited) (Audited)
Six months to Six months to Year to
30 November 2007 30 November 2006 31 May 2007
�'000 �'000 �'000
Profit for the period 1,461 958 3,360
Foreign translation gain (4) 20 35
--------- --------- ----------
Total recognised income and
expense attributable to
equity holders of the parent 1,457 978 3,395
========= ========= ==========
Maxima Holdings plc
Consolidated Interim Balance Sheet
(Unaudited,
(Unaudited) restated) (Audited)
Notes 30 November 30 November 31 May
2007 2006 2007
�'000 �'000 �'000
Assets
Non- current assets
Property, plant and
equipment 948 952 943
Goodwill 38,696 21,703 34,689
Intangible assets 11,469 6,150 10,535
----------- ----------- ----------
Total intangibles 50,165 27,853 45,224
----------- ----------- ----------
Total non-current assets 51,113 28,805 46,167
Current Assets
Inventory 376 143 106
Trade and other
receivables 11,846 8,484 11,153
Cash and cash
equivalents 3,033 2,043 2,861
----------- ----------- ----------
Total current assets 15,255 10,670 14,120
----------- ----------- ----------
Total assets 66,368 39,475 60,287
----------- ----------- ----------
Liabilities
Current liabilities
Trade and other
payables (2,162) (1,780) (3,831)
Deferred Income (10,195) (7,813) (9,493)
Tax liabilities (1,396) (1,869) (230)
Bank loans and short
term borrowings (751) (700) (776)
Accruals (2,902) (2,626) (2,446)
----------- ----------- ----------
Total current liabilities (17,406) (14,788) (16,776)
----------- ----------- ----------
Non-current liabilities
Long term borrowings (11,650) (9,100) (8,700)
Finance leases (30) (76) (90)
Deferred tax (3,220) (1,649) (2,994)
Deferred consideration (500) (325) (325)
----------- ----------- ----------
Total non-current
liabilities (15,400) (11,150) (12,109)
----------- ----------- ----------
Total liabilities (32,806) (25,938) (28,885)
----------- ----------- ----------
Net assets 33,562 13,537 31,402
=========== =========== ==========
Equity
Share capital 245 181 244
Reverse acquisition
reserve (9,180) (9,180) (9,180)
Share premium account 28,524 17,270 28,521
Capital redemption reserve 50 50 50
Merger reserve 11,026 5,211 9,559
Foreign translation
reserve 38 27 42
Retained earnings 2,859 (22) 2,166
----------- ----------- ----------
Total equity 5 33,562 13,537 31,402
=========== =========== ==========
The comparative figures for the financial year ended 31 May 2007 are an extract
of the company's statutory financial statements for that financial year under
IFRS. Those financial statements have been reported on by the company's auditors
and delivered to the Registrar of Companies. The report of the independent
auditors was unqualified and did not contain a statement under section 237 (2)
or (3) of the Companies Act 1985.
Maxima Holdings plc
Consolidated Interim Cash Flow Statement
(Unaudited,
(Unaudited) restated) (Audited)
Six months to Six months to Year to
Notes 30 November 30 November 31 May
2007 2006 2007
�'000 �'000 �'000
Operating activities
Operating profit 2,328 1,489 4,605
Adjustments for:
Depreciation charge 230 113 334
Share based payment expense 64 79 134
Amortisation of intangibles 1,597 602 1,426
----------- ----------- ----------
Operating cash flows
before movements in
working capital 4,219 2,283 6,499
Movement in inventories (270) (116) (116)
Movement in receivables (34) (209) (1,938)
Movement in payables (1,778) (1,318) (200)
Taxation paid (215) (114) (2,203)
----------- ----------- ----------
Net cash from operating
activities 1,922 526 2,042
Cash flows from investing
activities
Interest paid (329) (198) (430)
Interest received 70 60 84
Sale of short term
investments - - 23
Purchase of property,
plant & equipment (83) (146) (236)
Proceeds from sale
of property, plant &
equipment 12 - 17
Acquisition of
subsidiaries (net of
cash acquired) (3,309) (4,417) (15,209)
Expenditure on research &
development activities
capitalised (131) (38) (59)
----------- ----------- ----------
Net cash used in
investing activities (3,770) (4,739) (15,810)
----------- ----------- ----------
Cash flows from financing
activities
Proceeds from long
term borrowings 4,000 7,000 4,000
Repayment of long
term borrowings (1,100) (350) (700)
Repayment of finance leases (35) - (69)
Dividends paid (847) (400) (734)
Proceeds from issue of shares 2 - 11,126
----------- ----------- ----------
Net cash from financing
activities 2,020 6,250 13,623
Net increase/(decrease)
in cash & cash equivalents 172 2,037 (145)
Cash and cash equivalents at
beginning of period 2,861 6 3,006
----------- ----------- ----------
Cash and cash equivalents at
end of period 4 3,033 2,043 2,861
----------- ----------- ----------
Maxima Holdings plc
Notes to the interim financial statements
1. Basis of preparation
The interim financial information does not constitute statutory financial
statements for the purpose of section 240 of the Companies Act 1985. The figures
for the year ended 31 May 2007 have been extracted from the Group Financial
Statements for that year. Those financial statements have been delivered to the
Registrar of Companies and included an independent auditors' report, which was
unqualified.
The interim financial information has been prepared using the same accounting
policies and estimation techniques as will be adopted in the Group financial
statements for the year ending 31 May 2008. The Group financial statements for
the year ended 31 May 2007 were prepared under International Financial Reporting
Standards. These interim financial statements have been prepared on a consistent
basis and format; however IAS 34 'Interim Financial Reporting' has not been
applied in full.
2. Segmental Analysis
Segment information is presented in respect of the Group's business segments.
The primary format, business segments, is based on the Group's management and
internal reporting structures.
Segment results and assets and liabilities include items directly attributable
to a segment. Unallocated items comprise mainly tax and financing related items.
Six months ended 30 November 2007 Maxima
Maxima Managed
Solutions Services Total
�'000 �'000 �'000
Revenue 9,798 11,277 21,075
--------- --------- ---------
Operating profit before
amortisation 2,119 1,806 3,925
Amortisation of intangibles (320) (1,277) (1,597)
--------- --------- ---------
Operating profit 1,799 529 2,328
Net financial expense (369)
---------
Profit before income tax 1,959
Income tax expense, net (498)
---------
Profit for the period 1,461
---------
Balance Sheet
Assets
Segment assets 18,833 44,457 63,290
Unallocated assets 3,078
---------
Consolidated total assets 66,368
---------
Liabilities
Segment liabilities 9,500 6,006 15,506
Unallocated liabilities 17,300
---------
Consolidated total liabilities 32,806
---------
Capital expenditure 202 2,641 2,843
Depreciation 133 97 230
Six months ended 30 November 2006 Maxima
Maxima Managed
Solutions Services Total
�000 �000 �000
Revenue 7,910 5,118 13,028
--------- --------- ---------
Operating profit before 1,114 977 2,091
amortisation
Amortisation of intangibles (151) (451) (602)
--------- --------- ---------
Operating profit 963 526 1,489
Net financial expense (138)
---------
Profit before income tax 1,351
Income tax expense, net (393)
---------
Profit for the period 958
---------
Balance Sheet
Assets
Segment assets 18,106 18,988 37,094
Unallocated assets 2,381
---------
Consolidated total assets 39,475
---------
Liabilities
Segment liabilities 9,996 1,969 11,965
Unallocated liabilities 13,973
---------
Consolidated total liabilities 25,938
---------
Capital expenditure 2,376 1,281 3,657
Depreciation 74 39 113
Year ended 31 May 2007 Maxima
Maxima Managed
Solutions Services Total
�000 �000 �000
Revenue 18,796 12,971 31,767
--------- --------- ---------
Operating profit before
amortisation 3,699 2,332 6,031
Amortisation of intangibles (437) (989) (1,426)
--------- --------- ---------
Operating profit 3,262 1,343 4,605
Net financial expense (423)
---------
Profit before income tax 4,182
Income tax expense, net (822)
---------
Profit for the period 3,360
---------
Balance Sheet
Assets
Segment assets 18,763 38,592 57,355
Unallocated assets 2,932
---------
Consolidated total assets 60,287
----------
Liabilities
Segment liabilities 10,319 5,101 15,420
Unallocated liabilities 13,465
----------
Consolidated total liabilities 28,885
----------
Capital expenditure 2,976 6,406 9,382
Depreciation 240 94 334
3. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of shares in issue during
the period. Diluted earnings per share takes into account the dilutive effect of
the share options outstanding under the Company's employee option schemes and
acquisition related earn outs payable in shares.
Adjusted earnings per share is based on earnings before amortisation, share
based payments and exceptional items, and is presented in order to assist in the
understanding of the underlying performance of the Group's businesses.
(Unaudited) (Unaudited) (Audited)
Six months to Six months to Year ended
30 November 30 November 31 May
2007 2006 2007
Earnings �000 �000 �000
Net profit after tax
attributable to equity holders 1,461 958 3,360
---------- ---------- ----------
No. 000's No.000's No.000's
Weighted average number of shares
For basic earnings per share 24,787 16,422 17,525
Dilutive share options 478 380 406
---------- ---------- ----------
For diluted earnings per share 25,265 16,802 17,931
Basic earnings per share 5.9 5.8 19.2
Diluted earnings per share 5.8 5.7 18.7
Operating profit 2,328 1,489 4,605
Add back
Amortisation of share based
payments 64 79 134
Amortisation of other
intangible assets (excluding
research and development) 1,534 573 1,426
Redundancy and re-organisation
costs - 87 87
---------- ---------- ----------
Adjusted operating profit 3,926 2,228 6,252
Net interest (369) (138) (423)
---------- ---------- ----------
Adjusted profit on ordinary
activities before tax 3,557 2,090 5,829
Tax on ordinary activities (498) (393) (822)
Tax on share based payments,
amortisation and
re-organisation costs (479) (222) (475)
---------- ---------- ----------
Adjusted profit after tax 2,580 1,475 4,532
---------- ---------- ----------
Adjusted basic earnings per
share 10.4p 9.0p* 25.9p
Adjusted diluted earnings per
share 10.2p 8.8p* 25.3p
---------- ---------- ----------
* The adjusted earnings per share for the period to 30 November 2006 includes
the tax effect on share based payments, amortisation and re-organisation costs,
previously excluded.
4. Acquisitions
The company acquired 100% of the share capital of Centric Networks Limited
during the period. The book and fair values acquired were as follows:
Centric Networks
Book Fair Fair
Value Value Adj. value
�000 �000 �000
Intangible Assets - 2,400 2,400
Tangible Fixed Assets 156 - 156
Receivables 971 - 971
Cash & Cash equivalents 1,455 - 1,455
Payables (1,668) (15) (1,683)
-------- ------- --------
Net Assets 914 2,385 3,299
Goodwill 3,140
Consideration 6,439
Cost of acquisition
Net outflow arising on acquisition:
Shares 1,500
Earn out consideration 500
Cash 4,400
Costs 39
Cash and cash equivalents acquired (1,455)
Net cash outflow 2,984
No. of share issued 485,123
Date of acquisition 19/07/07
The directors have reviewed the carrying values of the assets for the
acquisitions of Centric Networks Limited and identified that other than in
compliance with IFRS 3 (Business Combinations) relating to the valuation of
intangibles and for provisions for holiday pay no other adjustment to the book
values is required.
There is a deferred consideration element of a maximum of �500,000 based on the
level of trading with a major customer in the 12 months to 31 May 2009. This
earn out can be paid in either cash or shares at the company's discretion. The
number of shares is fixed at 161,708.
5. Statement of changes in equity
Share Reverse Merger Share Capital Foreign Retained Total
Capital acquisition reserve premium redemption translation earnings
reserve account reserve reserve
�000 �000 �000 �000 �000 �000 �000 �000
At 1 June 2006 160 (9,180) 1,766 17,270 50 7 (659) 9,414
Profit for the
year - - - - - - 3,360 3,360
Dividends paid - - - - - - (734) (734)
Share based
payments - - - - - - 199 199
Foreign
exchange on
consolidation - - - - - 35 - 35
Issue of
shares (net
of expenses) 84 - 7,793 11,251 - - - 19,128
------- -------- ------- ------- -------- -------- ------- -------
At 31 May 2007 244 (9,180) 9,559 28,521 50 42 2,166 31,402
Profit for
the period - - - - - - 1,461 1,461
Dividends paid - - - - - - (847) (847)
Share based
payments - - - - - - 79 79
Foreign
exchange on
consolidation - - - - - (4) - (4)
Issue of
shares (net
of expenses) 1 - 1,467 3 - - - 1,471
------- -------- ------- ------- -------- -------- ------- -------
At 30 November
2007 245 (9,180) 11,026 28,524 50 38 2,859 33,562
------- -------- ------- ------- -------- -------- ------- -------
6. Dividends
An interim dividend of 2.0 pence per share for the year to 31 May 2008 will be
paid on 13 May 2008 to shareholders on the register at 11 April 2008. In
accordance with IAS 10 this has not been accrued for in the accounts.
7. Post balance sheet acquisition
The Group acquired the trade and assets of Eclectic Group Limited, a business
intelligence consultancy and training company on 31 December 2007 for a maximum
consideration of �3,000,000 to be settled in cash.
8. Availability of Interim Report
Copies of these results are being sent to shareholders and will also be
available from the Company's registered office at Cotswold Court, Lansdown Road,
Cheltenham, GL50 2JA.
9. Statutory Accounts
These financial statements do not constitute statutory accounts. Although the
information has been reviewed by the auditors, it is unaudited.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR IFFILFRISIIT
Maxima Holdings (LSE:MXM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Maxima Holdings (LSE:MXM)
Historical Stock Chart
From Jul 2023 to Jul 2024
