Shares in FTSE 350-listed Marshalls PLC (LSE:MSLH) tumbled 12% to 256p after it warned on profits as the economic climate has continued to be "challenging".
The paving specialist, for which this is not the first profit warning in the past 12 months, said trading performance in the year to date has been weaker than originally anticipated, with like-for-like revenue contracting 14%.
As well as the tougher macroeconomic conditions, it also pointed to a reduction in new housebuilding and continued weakness in private housing repair and maintenance activity.
Marshalls highlighted a recent cut in a forecast for construction output by the Construction Products Association.
Taking these factors together, the board now expects to deliver a full-year result that is lower than its original expectations.