Shares in MISSION Group (LSE:TMG) PLC fell 59% after the digital marketing group sounded the earings alarm and cancelled the dividend in the face of difficult trading conditions.
In a bid to reduce debts, the company also said it was mulling disposals of non-core assets.
It is also speaking to its bank about a potential covenant waiver. Dialogue with NatWest is said to be constructive.
As of 20 October, net debt stood at around £25.5 million.
Operationally, markets have proved more challenging than expected, particularly in sectors like Consumer & Lifestyle, Property, and Technology & Mobility.
Against this backdrop, MISSION is carrying out a review targeting cost reductions.
Although the company anticipates 8%-9% growth in full-year revenue, the outcomes for FY2023 are expected to fall considerably below market predictions. Profits before tax for FY2023 are not estimated to exceed £3.1 million.
At 9.41 am, the shares were changing hands for 13.78p, down 20.22p