James Cropper plc (AIM:CRPR) tumbled 16% as the composites and packaging group said tough trading conditions would now mean annual profits only matching the previous year.
Established in 1845, AIM-listed Cropper said that its advanced materials arm is seeing healthy demand but the luxury packaging and photographic board markets were struggling.
As a consequence, results for the year to end March 2025 will be below prior expectations, with full-year revenue and adjusted profit before tax expected to be broadly at the same level as 2024 or £103 million and £758,000 respectively.
More cost savings are being implemented and the search for opportunities in new markets stepped up said the statement.
Revenues in the six months to end September 2024 were £49.9 million or down 11% on a comparable basis but up 7% half-on-half.
Interim losses were £0.6 million (2023: Profit £2.4 million) with no interim dividend.
Steve Adams, who hands over the chief executive reins to David Stirling early next year, added: "Although trading was challenging in the first half of the financial year, the group was able to achieve sequential growth in revenue and profit with clear signs of recovery across most segments of the business.
"The Advanced Materials business continues to benefit from its focus on end-markets with strong secular growth trends,
"The fact that our direct customer base remains stable and intact and that we are seeing positive trends in various end markets gives us confidence that the group is positioned for growth once end market conditions stabilise and improve.”
Shares fell 40p to 210p.