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.
Subscribe to 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, 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".
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
