Merrion Stockbrokers is advising investors to sell Baltimore at £0.71 (€0.90), suggesting this is at or close to the level that an acquirer would be likely to pay for the business. Baltimore has confirmed difficulties in revenue outlook and problems of controlling costs in a company built for rapid growth.

To reach operating break-even with its current sales volumes, Baltimore would have to shed 44 per cent of all its costs. Merrion suggests that, in the current economic environment, many companies like Baltimore will be subsumed into larger businesses.

With little positive operational cashflow before mid-2003 and with cash balances probably completely gone by the fourth quarter of 2002, the most relevant indicator of Baltimore's value is the price that an acquirer would be likely to pay.