Maxima Holdings Share Discussion Threads

[brummy_git] 06/5/2011 20:29

To me if MXM can deliver sales and adjusted EBITA of £45m (60% recurring) and £3.5m respectively - then on a prudent 8 times multiple - the shares are worth over 60p even after deducting £11.6m in debt.

IMO - it looks like someone is deliberately pushing the price down to buy it on the cheap.

[6kenny] 05/5/2011 22:45

a business up to its eyeballs in debt is hardly a good business is it? best to wait and see if they go into administration and then buy the client contracts on the cheap.

[tradermania] 05/5/2011 22:33

surely this is worth more than 8 million. Ok so they need some money but they have a business.

[tech] 04/5/2011 11:21

At what price additional funding, if any?

[vision88] 26/4/2011 23:51

Looks very cheap r/now 11.5 million debt is the problem here looking cheap may get a lot cheaper a buy out offer at what price i wonder ???

[6kenny] 18/4/2011 09:07

paddy,

Exactly, I think any potential offer will come in at below the current share price

[paddyfool] 15/4/2011 14:22

This now very bad indeed. The future pipeline will dry up overnight. No one will do business with them for fear of the future. This will be a fire sale.

[tech] 15/4/2011 11:24

Large debt at 11.6m last results, lower revenue expected, what profit if any. This does not look good and will require additional finance at what price?

[rumithepoet] 14/4/2011 10:59

GCI story on Maxima today




Original SEll rating here too if you're interested chaps -was written by Ben Jaglom the original one

[glasshalfull] 14/4/2011 09:23

I reckon the outer will be an agreed bid by KBT.

I've watched & invested in KBT, SND, MXM and TSE (Touchstone - now delisted) over the past 10-years and only KBT appears to have it's house in order. Reckon they'd be a good fit and I'm sure that MXM will command a sale price significantly higher than today's languishing share price. If the QAD withdrawal hadn't occurred then I'm sure they'd have weathered the decline in legacy far better but that was a real kicker.

However, too many uncertainties and debt, so despite the apparent value I won't invest here.

Regards,
GHF

[orangerabbit] 14/4/2011 09:16

"Maxima growth engines" interesting language to describe an under-performing business...

[orangerabbit] 14/4/2011 09:14

I'm glad I got out just after the last set of results now. I did consider holding but there seemed to be a real lack of interest in this company. Very disappointing to hear that they aren't able to generate organic growth. Don't hold out much hope here.

[stegrego] 14/4/2011 08:36

40% down is a hell of a drop, but im not tempted as too many ifs buts and maybes.

[campbed] 14/4/2011 08:21

This is an ugly profit warning calling into question key strategies and management capabilities as well as reporting poor execution. No position, as like GHF, I'd previously sold as there were more assured small cap recovery prospects e.g. good trading update from HMY today which isn't just a VAD of others' core technology like MXM.

[glasshalfull] 14/4/2011 08:19

Agree steg. I was watching it on the pullback but had decided against it due to the drag of the "historic" business.

Here's what Arbuthnot have to say on this mornings news.


Maxima
MXM.L / 81.50p


Maxima's trading update for the year to end May 2011 is disappointing, with a significant revenue shortfall; the company stating a figure of no less than £45m vs the £49.7m consensus forecast. This is likely to mean the company will report a loss for the second half, in our view. Counterbalancing this negative news is the announcement of a strategic review, which may lead to an offer for either the whole of the group or bits of it.


Regards
GHF

[stegrego] 14/4/2011 08:08

Looks like we did the right thing here. Profit warning today.

[glasshalfull] 02/2/2011 17:42

steg - As is often the case, I'm with you on MXM.

I ducked out at 90p (only a 29% return ;-) a short time after the t/s in December that I simply felt was "ok". Better opportunities elsewhere at the time IMO despite MXM's lowly rating.

Hoped that today's statement would encourage me back in but unfortunately not. Revenues lower & net debt higher than my expectations but they are clearly managing the transformation from legacy provision to the "growth engines" that they state.

I still see a number of better opportunities in the market.

Best of luck to holders.


Regards,
GHF

[pro_better] 02/2/2011 13:21

edison

02/02/11

Forecasts and valuation: A low price for growth prospects

We have cut our forecast FY11 revenues by £2m to £50m, and FY12 by a more modest £0.8m to £53m to reflect growth coming through in the "growth engines". We have tweaked our EBIT forecasts, easing gross margins but also paring back operating costs. Investment is also increased. In all, the stock trades on 7.6x our FY11 earnings forecast, falling to 6.2x in FY12, which looks cheap given the strong cash generation of the business. Based on our forecasts, the group will generate free cash flow yields of c 10% in FY11, rising to c 14% in FY12 and to c 17% in FY13.

[orangerabbit] 02/2/2011 10:28

thanks stegrego, nothing wrong with taking a profit. Good luck with finding the next stock due to set the world alight and make sure you keep those fingers at bay

[stegrego] 02/2/2011 08:04

Numbers are ok, but i just dont feel its exactly going to set the world alight.

Therefore, Ive taken my 40% profit and moved on.

Good luck to those that remain holders.

[envirovision] 02/2/2011 08:03

one to watch in the future then seems fair value at the moment.

[orangerabbit] 02/2/2011 07:56

the message seems to be that they have a stable revenue base, have managed to weather the storm and loss of significant contract in 2009 and are poised for growth. Essentially cloud is an extension of their core business i.e. remote hosted and fully-managed IT service delivery. They also have some niche skills/technology which will give them an edge. I don't think that these factors are priced in at around 105-110

[envirovision] 02/2/2011 07:25

seems in line then

[envirovision] 01/2/2011 18:48

True, so big day tomorrow. The Company reported encouraging progress during the first half of the year with strong double digit revenue growth in most of the identified areas of focus and competence, including Microsoft Applications, Citrix virtualisation, Web Connectivity and Infrastructure Management. The company said that overall, trading remains in line with current market expectations for the financial year as a whole.

Analysts expect the company to report full year EPS (pre amortisation) of 13.433 pence per share against 12.80 pence, reported a year ago. Full year revenue is estimated at £52.16 million with a Pre-tax profit (pre amortisation) at £4.83 million. Full year dividend for FY 2011 is forecasted at 3.25 pence per share.