Newmark Security PLC (LON:NWT), the security solutions firm, saw shares fall as it warned on tough current trading conditions but said it was optimistic on the future.
The group says operating profit for the current year to April 30, 2017 is expected to be significantly less than for 2016.
It comes after it said trading for the year ended April 30 was in line with market expectations
Marie-Claire Dwek, Newmark chief executive said: "Moving into exciting new markets inevitably comes with challenges.
"Though there have been setbacks over the past year in converting our pipeline into sales, I am confident that we are well-positioned to deliver the progress which we anticipate, with a host of new product launches to look forward to."
For its electronic solutions subsidiary, Grosvenor, the year gone has seen a divergence of revenue between the JANUS, which is no longer supported by Microsoft, and more advanced SATEON product lines.
SATEON revenues increased significantly overall although revenue from the mid-tier customers has not grown as quickly as expected, the firm noted.
Meanwhile, in workforce management, a decline in sales of the legacy RS series of products and a slowdown of the rollout across the estate of one of the world's largest apparel retailers, revenues in the UK business softened during last year.
To compound matters, sales for a contract worth US$6mln over five years from late 2015, have been deferred due to the customer experiencing internal resource constraints, it added.
The group's new sales office opened in Hong Kong to support sales in the Asia-Pacific region, has seen the pipeline of opportunities in these countries grown, but meaningful revenues are yet to be generated.
Sales in the US have also not matched expectations.
However, Newmark still expects to maintain the dividend at the time of the final results due for release in August this year, it added.
Shares dropped over 35% to stand at 1.82p. Read more on the company HERE.