Carclo (LSE:CAR) shares dropped around 24% in Thursday morning’s deals after news of a contract cancellation.
The plastics firm, in a statement, told investors that a recently won customer supply contract has now been cancelled and will likely impact the company's financial results for the year ending 31 March 2023.
The company said it is currently in constructive discussions with the customer regarding a commercial settlement. But, it now anticipates that profits for the second half of this financial year will be lower than previously expected.
It added that the company's lending bank is supportive and is actively discussing potential amendments to address the impact on its banking covenants.
In London, Carclo (LSE:CAR) shares were down 3.63p or 24.2% changing hands at 11.37p each.