Shares in Synectics (AIM:SNX), the UK security and surveillance group, fell 11% to 185.4p after it reported sharply lower first-half earnings and blamed delays to energy-sector work.
Revenue dropped to £22.2 million from £35.5 million, though the prior year included £7.8 million from a one-off gaming contract that did not recur.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to £1.0 million from £4.2 million a year earlier.
The company said the conflict in the Middle East had created uncertainty over the timing of some energy projects, delaying certain contract awards.
It guided full-year adjusted EBITDA to a range of £3.7 million to £4.1 million, the latter being current market expectations.
There were brighter notes beneath the headline figures.
Since the period ended, oil and gas order intake has already exceeded the total booked in the entire first half, driven mainly by customers outside the Middle East.
Gross margin rose seven percentage points to 48%, helped by an improved product mix and the completion of several lower-margin projects.
The group entered the second half with an order book of £26.4 million and net cash of £10.5 million with no bank debt.
An interim dividend of 2.2p is payable on 2 October to shareholders on the register at 4 September.
Synectics (AIM:SNX) is pursuing a five-priority "5P" strategy to become a product- and partner-led business, targeting a serviceable market it estimates at around £2 billion.
New contract wins included a £1.5 million deal with Stagecoach, the UK's largest bus and coach operator, and a $2.4 million agreement with a major West Coast US casino operator signed after the period.
In boardroom changes, Jon Kempster was appointed interim chair, Peter Kear joined as senior independent director, and Bob Holt stepped down as previously flagged.
