office2office said on Tuesday revenue in the contract office supplies business has declined.
Ahead of the company's annual statement in March, the group revealed that it has had to contend with a tough market since its November interim management statement.
The group is expected to report an underlying profit before income tax in the range of £6.3 and £6.7m for the year ended December 31st.
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Revenue exceeded that for the same period in 2011, reflecting the growth of its Truline and Business Critical Services activities.
However, the provider of office supplies and business solutions said it "has not been able to compensate for the difficult trading in the contract office supplies market".
The company anticipates a slightly higher level of borrowings than the previous year.
Shares droped 4.86% to 117.50p at 15:53 Tuesday.
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