Elektron says outlook is murky

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".