IT services provider Maxima Holdings has reduced its cost base to reflect the loss of the QAD enterprise software distribution contract.
Some QAD customers take other services from Maxima. New business is being won with the likes of insurance services provider Towergate and two customers have agreed to multi-year renewals worth £6.5m in total.
Net debt has fallen by £2m to £13.5m in the six months to November 2009.
Maxima is still on course for full year profits of £4.8m, down from £7.1m in the year to May 2009, which puts the shares on seven times prospective 2009-10 earnings. The total dividend is forecast to be cut from 4.5p to 3p a share.
At 74p a share, up 2p on the day, Maxima is valued at £18.7m. The prospective yield is 4.1%.
Interim figures will be published on 2 February.
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