Shares in Ultimate Products PLC (LSE:ULTP) plunged 32% early on Wednesday after the homeware group warned of declining revenues and flat profits, despite modest sales growth.
The owner of household brands such as Salter and Beldray said group revenue rose 3 per cent between February and May compared to the same period last year.
However, sales were concentrated in lower-margin categories, leaving gross margins unchanged and adjusted earnings flat at £3.6 million.
A slowdown in retailer orders, including £4 million of deferred sales, means full-year revenue for 2025 is now expected to fall by 4%.
Adjusted EBITDA is forecast at £12.5 million, well below analyst expectations of £14.3 million.
The company also flagged a subdued start to the next financial year, with its forward order book down 7.5%.
While past investments in automation and product development have delivered gains, the focus is now shifting to improving the sales function.
The stock fell 23.94p to 50.26p.