Alarms were ringing at Sprue Aegis PLC (LON:SPRP) on a warning its dispute with a distributor had cost £3.8mln to settle while current trading is well below expectations.
Results from the home safety products group had been delayed due to the spat with Newell Brands' BRK arm.
READ: Sprue Aegis shares catch fire as it settles dispute with distribution partner
The settlement draws a line after an eight-year relationship, Sprue Aegis said. It will, however, affect cashflow in this year.
Revenues in 2018, meanwhile, are 20% below the first four months a year ago due to lower sales in Germany with additional disruption from a new manufacturing plant in Poland.
As a result, there will be an interim loss while trading for the year overall will be heavily weighted more towards the second half.
Revenues in 2017 fell to £54.3mln (£57.1mln) while pre-tax profits dropped to £545,000 from £1.57mln.
The recent problems mean the final dividend for 2017 has been cut, with the group having net cash of £3.3mln at the year-end.
Shares fell 26% to 97.5p.