Shares in PVC window and door maker Eurocell PLC (LSE:ECEL) dropped after it opened the curtain on a 12% drop in first-half profits and cut its dividend after seeing a further deterioration in the market in recent months.
Management now expects the full-year performance to be below previous expectations.
There had been a "particularly severe decline" in new-build housing in the six months ending 30 June 2023, leading to the fall in pre-tax profit to £3.5 million on revenue down 2% to £184.4 million.
Following the deterioration in sales volumes since July, the company said it had taken "decisive" action on costs and to "position the business well for when markets recover".
It said the cash flow performance had remained solid, allowing a 2p interim dividend per share to be paid, down 1.5% on the one paid a year ago.
The shares fell 11% to 100p in early trading, but eased off to 104p later in the morning.