AIM-listed electronics group Solid State PLC (AIM:SOLI) shares collapsed by 40% on Friday in response to a trading update.
Solid State announced that payments linked to a UK government defence contract have been paused pending the completion of a strategic defence review next summer.
Although the company expects the orders to be received in due court, they will fall outside the current financial period.
Chief executive Gary Marsh called the delays “frustrating”, but “the board remains optimistic about the medium and long-term outlook for defence spending given the current geopolitical climate”.
“Aside from this order deferral, the open order book continues to improve across our target markets,” he added.
Shares are currently swapping for 135.33p.