Wednesday, 18 March 2009

Maxima warns again

(By Anthony Miller – Wednesday, 18th March 2009 6:15pm). Maxima CEO Kelvin Harrison’s cautious tone in last month’s interim results (see Maxima – a question of focus) has turned into a full blown profit warning (see here) as their Q4 outlook turns sour from “delays in decision making and down-sizing of new business opportunities”. It’s a real shame because we hold Harrison in high regard. But we have to say that acquisition-built mini-conglomerates (12 since its 110p a share AIM IPO in Nov. ’04) are very high risk and rarely work – as we said on Maxima’s profit warning just over a year ago (see Warning from Maxima - Beware the consolidators). Maxima’s shares dived another 10% today to 69p; they were almost £2 last August.

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