Marshalls PLC (LON:MSLH), the supplier of landscape products, has seen a slight softening in commercial sales in the UK in the last two months.
Shares cratered, losing almost 8% at 319.44p after the release of a trading statement ahead of today's annual general meeting.
The paving stone specialist's UK revenue in the first four months was up 1% year-on-year at £120mln, with the company quick to point out the comparative figures were strong.
The group maintained its market share in the period up to the end of April, but said some customer projects have been delayed in response to short-term uncertainty in the wider economy, as highlighted by the Construction Products Association's (CPA) most recent industry data.
Broker N+1 Singer suggested performance may have been affected to some extent by uncertainty over Britain's continued membership of the European Union.
Marshalls added that the wet ground conditions early this year have deferred progress on many construction sites in both Commercial and Domestic end markets, but stopped short of blaming this on Brexit fears.
While local government landscape spend is subdued, this should eventually return, the company suggested.
“The board is confident of achieving its expectations for 2016 and believes the outlook for the group continues to be positive,” the company told investors.
Panmure Gordon, which rates the shares a 'buy', said it was leaving its earnings forecasts unchanged but, given the slower top-line trends, it has reduced its sales forecast for the current year by 4% and for next year by 5%.