Shares in Flowtech Fluidpower (AIM:FLO) PLC dropped 27% after the company warned of significantly lower-than-expected full-year trading results.
The firm cited deteriorating market conditions, including delays to large OEM projects and reduced product volumes, as key factors behind the profit warning.
Despite efforts to improve margins and implement cost controls, Flowtech has not seen the positive gains it had anticipated.
Additionally, the recent acquisition of Thorite, while expected to boost revenues in 2025, is having a negative impact on operating profit for 2024.
The combination of these challenges has led Flowtech to cut its full-year forecast, which will be "significantly below" the current market consensus.
In morning trading the stock was off 22.5p at 87.5p.