Biome Technologies PLC (LON:BIOM) shares slumped over 22% in early deals as it warned its full year performance would be below market expectations.
Group revenues for the mid-year point (June 30) are expected to be £2.2mln compared to £2.1mln in the same period of 2015.
"Whilst this revenue is marginally ahead of last year's performance, it is below that of the board's expectations.
"This shortfall is due to a reduced demand for already commercialised products in the Bioplastics Division and some slippage of the Stanelco RF's division's order pipeline into the second half," the firm told investors.
After a review of the bioplastics business, the board reckons the long term outlook remains positive but demand is likely to be less than thought in the short term.
Revenues had recovered in the second quarter to £0.4mln with some additional campaigns, but it had been expected by that the recovery would be stronger.
Revenues for the radio frequency tech division in the first half of 2016 were £1.6mln (2015: £1.3m), slightly behind the board's expectations.
"Whilst a number of the prospective orders for the second half are still being finalised, the division has a healthy enquiry book forward into 2017," the group noted.
Shares dropped 22.41% to 112.50p.