Maxima shares slide on below-par expectations
Blames loss of big client and economic blues
Maxima Holdings yesterday saw its shares tumble by nearly 40 per cent after the managed IT services firm issued a profits warning about its forthcoming first half-year results.
The Scottish company said in a trading update that results for H1 ended 30 November 2007 would be below expectations.
It said that the termination of several major work projects with an unnamed large client had taken the wind out of Maxima's sails in the second half of the year.
The firm, which provides software services to the likes of Scottish Power, the Foreign and Commonwealth Office and Orange, said that it had hoped to offset contract losses by winning other business in the second half of the year.
However, Maxima said it experienced client delays which affected business, and it added that its prospects had dipped because of "broader current market uncertainties".
It said that results for the full year were also likely to be below expectations but reckoned it would still show revenues, profits and earnings per share growth.
Over the past year the blue chip firm has been on an acquisition spending spree swallowing up Centric Networks, 3net and SevenThree.
Maxima, which saw group revenue of about £30m last year, will cough up its interim results for the six months ended 30 November 2007 on 5 February.
Shares in the company are currently trading at 146.50 pence – a 52-week low – on the London Stock Exchange. ®