IT services provider Maxima will lose more than £1m in profits following the ending of its agreement to sell QAD enterprise software.
QAD wants to supply its software directly and it will not renew its agreement with Maxima when it comes up for renewal on 31 January 2010. Maxima was the only distributor of QAD software in the UK and Ireland.
Maxima says that it could lose £1.3m of operating profits this year even though the agreement does not come to an end until four months before the end of the year. That suggests that it could be even worse in a full year. It will depend on the timing of revenues, particularly from support contracts.
The news came after the market closed. However, the share price fell 7.5p to 133.5p during the afternoon. Maxima is valued at £33.7m.
Figures for the six months to November 2009 will be published in the middle of December. Trading had been improving so this latest news comes as a blow to Maxima.
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