Shares in fluid technology firm Pursuit Dynamics crashed 77% on Monday morning after Procter and Gamble ended an agreement to use the former's technology.
Pursuit has now been forced to undertake a strategic review of its business and said profits would be "materially below" previous expectations.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, following completion of evaluation trials, the American multinational decided it would not pursue further evaluation or development or enter into exclusive licensing discussions with Pursuit.
"As a result of this, the company's revenues for the year ending 30 September 2012 will be materially below the Company's earlier expectations," said interim Chief Executive, Jeremy Pelczer.
"The company has been undertaking a strategic review of the business and in light of the P&G decision the review will be accelerated to allow an update to be provided by the end of June 2012," he said.
"Although the resulting revenue shortfall will constrain growth we will continue to pursue a range of commercialisation opportunities while we conduct the strategic review."
-
Millions at risk of 'unnecessary' tax bill – how to shield your savingsMillions of Brits could be taxed on their savings interest this year as their savings interest exceeds the personal savings allowance. Are you at risk?
-
Savers will have to wait as long as 48 years to build a £1m cash ISA pot if allowance is cutChancellor Rachel Reeves is rumoured to be planning a cut to the cash ISA allowance in the Autumn Budget, making it harder for savers to build wealth. Will you still be able to build a £1 million cash ISA pot?
