IT software and services provider Maxima Holdings says that delays and cancellations mean that its second half performance will be weaker than expected.
At 50.5p a share, down 31p, Maxima is valued at £12.8m.
Delays in the timing of delivery to some customers is compounding the problem and second half revenue will be much lower. Revenue is expected to be at least £45m in the year to May 2011, down from £51m the previous year. Pre-tax profit will not get anywhere near the £5m previously forecast for 2010-11.
Management believes that Maxima’s Cloud-based expertise can be exploited but it needs additional investment. A review of the business is underway and this may lead to partnerships, a takeover or the raising of new cash. The latter will be made more difficult by the share price slump today.
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