Shares in Elektron Technology tanked on Thursday after it warned weak levels of demand might continue into the second half of the financial year.
The stock lost almost 16% of its value after the firm posted a drop in first half revenues and warned about the outlook for trading.
The firm also said it would not pay an interim dividend and would make a decision on any final dividend in the light of second half trading.
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However, it highlighted the fact it had returned £1.1m cash to shareholders via payment of a final 2012 dividend in August and the purchase of 2.4m shares.
Revenue fell to £29.9m from £34.4m the year before, while pre-tax profits were down markedly to £0.8m, from £2.8m in 2011.
The firm blamed "the on-going downturn in European economies and reduced UK Government spending making for difficult trading conditions".
