Shares in legal services specialist RBG Holdings PLC (AIM:RBGP) dropped 42% in early trading after it told investors its financial performance would be "significantly below market expectations".
The update came alongside the company's interims in which it said it is reducing its cost base by £4.5 million.
On revenue of £18.4 million, RBG posted a loss of £2.8 million for the six months ended June 30.
"The focus on cost reduction means the company is within budget on costs and whilst trading in September has shown encouraging signs of improvement, trading conditions for the rest of the financial year remain difficult to predict," the market learned.
"Accordingly, the board now expects that the group performance for the financial year 2024 will be significantly below market expectation."
In early trading, the shares were trading hands for 3.45p, down 2.5p.