Redstone

www.redstone.com TICKER: RED     EXCHANGE: L

Redstone plc is a network-based provider of end to end managed services. With over 400 employees and offices throughout the UK, Redstone comprises a group of companies that are committed to being the partner of choice for IT and communication solutions. Founded in 1995 and listed on the London Stock Exchange in 1999, Redstone is a market leader and a financially stable public limited company. Whether your goal is to remove the day-to-day headaches of maintaining your IT and Communications, enhance existing systems and processes or develop a large-scale IT infrastructure, Redstone plc brings the energy and expertise that allows you to get on with improving and growing your business. In November 2012, Redstone completed the acquisition of I.T. business systems Maxima Holdings plc for approximately £9.9m.The Maxima acquisition strengthens Redstone's position as a leading provider of network based end to end managed services, technology and infrastructure solutions. Maxima has built an enviable reputation for managed services with some of the UK's leading organisations, and their expertise will complement and strengthen Redstone's managed services offering substantially.

LATEST REPORTS

 
Stabilised
Published: Mar 01 2012

Maxima Holdings implements and supports enterprise software solutions for mid-sized, UK-based manufacturing, distribution and service organisations. 
Despite the turbulence that preceded and continued through the period, interim results to 30 November 2011 showed a degree of resilience thanks to  recurring revenues, (H1 2012: 54% of total revenues, H1 2011: 61%), limiting the decline in revenues to 9% to GBP 21.5m (H1 2011:GBP 23.7m). 
Further to the disposal of the business and assets of its Integrated Business Systems, IBS, sub-division in December 2011, Maxima has sold the SAPBI subdivision on 15 February 2012 and the Document Management, Intellect and Microsoft subdivisions on 28 February 2012: this is in line with the company's strategy to dispose of non-core assets.
These disposals have helped bring net debt down to a manageable level, and with a core focused on delivering managed services to its client base.With its focus on robust, growing markets, Maxima is now a significantly more attractive target for acquisition.
 
Orderly disposal
Published: Dec 19 2011

Maxima Holdings is an IT business systems and managed services company
It has completed the disposal of the business and assets of its Integrated Business Systems sub-division for a total consideration of £1.6m gross, of which £1.4m has been paid in cash and a further £0.2m is deferred pending renewal of a number of annuity contracts
Recently the balancing act the company had to carry out was between the strongly performing Growth Engines, including Cloud-based offerings, and the remaining parts of the business, which were suffering notable attrition as a result of the age of some technology and the adverse economic conditions
A successful programme of controlled disposals will allow Maxima to focus more resources on the high growth areas and to continue to reduce its net debt, so this news should be seen in an encouraging light
 
Final Results
Published: Aug 11 2011

The second half of the year saw delays for Maxima Holdings and, in some cases, cancellations, of sales that led in April 2011 to a downward revision of its guidance for the year to 31 May 2011.  Significantly, the Growth Engines have performed well, accounting for 30% of business revenues in 2011 (19% in 2010). However, attrition in the other areas of the business of around 23% more than offset this.  A Strategic review has been implemented to achieve more fundamental change in the company to support the growth strategy, new strategic relationships and the sale of part or all of the company. Several opportunities are currently being considered, including preliminary discussions with a potential offeror.

 

 
Strategic Review
Published: Apr 14 2011

At  the  time  of  Maxima‟s  interims  (2  February  2011)  there  were encouraging  signs  that  the  company  continued  to  execute  well  on  its Strategic  Focus  and  Simplify  Plan  despite  the  persistent  challenging market conditions with customers‟ budgets remaining constrained. However, after a satisfactory start to the second half year there have been some disappointments  in the past  two months. In order to address the funding needs of the company‟s growth plans and to fully exploit the potential of Maxima‟s expertise in Cloud-based service delivery,  the  company will undertake  a Strategic Review  to  consider  the options available to it.
 
Interim results - A Balancing Trick
Published: Feb 02 2011

Revenues in the 6 months to 30 November 2010 in the key areas of focus and investment recorded double-digit growth, and there were >40% and >90% year-on-year increases in revenue orders for Citrix Virtualisation and Microsoft Dynamics AX-related business respectively. However, the after-effects of the termination of the QAD contract, a decline in Business Intelligence consultancy revenues and product sales resulted in revenues declining from £26.2m to £23.7m.

We believe that Maxima continues to execute well on its Strategic Focus and Simplify Plan.  We have reduced our outlook for the current year, but believe that the reorganisation and the focus of investment in the selected growth areas will more than offset declines in the legacy business and result in a return to growth in 2012. Our target price is 140p based on 2012E multiples.

 
New products to the fore
Published: Dec 17 2010

Maxima Holdings plc is an IT business systems and managed services company

    Maxima's half year trading update of 17 December 2010 reports good progress in the first six months of the year to 30 November 2010, with strong revenue growth recorded within its core competences which provide the engines for recovery and future growth. Strong performance was seen in Microsoft Applications, Citrix Virtualisation, Web Connectivity and Infrastructure Management activities.

    We believe that Maxima continues to execute well on its Strategic Plan. We maintain our current forecasts and our price target of 130p remains.
 
Solid results
Published: Aug 04 2010

IT business systems and managed services company

Results in line: recurring revenue now 60% total, large reduction in net debt

Re-engineering on track and core competencies sourcing growth

Undemanding multiples augur well for share appreciation: fair value set at 130p vs current 88p

ARCHIVE

2010
Strong trading update
Published: Jun 17 2010

Full year trading update says results to be in line with expectations and good cash generation

Cloud computing proving a fruitful segment

PER of under 8x in 2010 and a healthy yield show significant undervaluation of shares
Focus on Growth
Published: Feb 02 2010

Long term record delivering flexible and innovative IT solutions and services
Interim results in line with expectation
Returning  to growth path
Executing on new management's strategy
Exciting new potential markets
Significantly undervalued to peer group

2009
Re-assuring update
Published: Dec 17 2009

 An IT business systems and managed services company with strong record of delivery

 Update reveals no surprises; encouraging second quarter and debt reduction

 Ongoing progress in simplifying the business and enhancing its brand

 Lowly PER for coming years ignores potential