Surgical Innovations Group PLC (LON:SUN) plunged on Friday after it issued a profit warning.
The AIM-listed firm, which develops products for minimally invasive surgery, said momentum (or lack of it) from its first quarter of its current year had not continued into the second, with orders from its UK and EU markets lower than expected.
The group added that the ongoing Brexit uncertainty was disrupting order patterns from both its distributors and end users, and as such was making demand visibility more difficult than normal.
For the UK in particular, the company said the overall volume of activity was “a continuing concern” and that demand muted by the subdued level of activity in the NHS.
However, despite the Brexit turmoil the group said revenues from its export markets outside the EU had been unaffected, especially in the US where growth had been strong.
Meanwhile, the company said regulatory approvals were becoming “increasingly challenging” and were placing an increased burden on its operational and technical resources.
Overall, the company said that the above factors meant revenue growth in its second half was “unlikely” to fully counter the weakness of its second quarter, and therefore adjusted pre-tax profits for its full year were expected to be lower than the prior year.
The shares were down 44.2% at 2.3p.