Components supplier Dewhurst (LON:DWHT) suffered from both falling sales and profit in the half year to March, sending shares plummeting at market open.
Profit before tax fell 4 percent to £2.8 million, down from £3 million this time last year, with revenue taking a 5 percent hit to land at £24.7 million. Operating profit also fell 19 percent to £2.5 million, with the company warning that the slump may well continue into the second half.
A strong pound was largely responsible for the fall, as well as a lack of demand for keypads, one of its key sales drivers.
“Although keypad sales have picked up a little in the last couple of months we do expect a declining trend on these products over the long term,” the company said.
“The second half may see a period of consolidation, but on balance we are encouraged by the future growth prospects for the group,” the company added.
The group maintained its interim dividend at 3.5 pence. Shares in Dewhurst are currently trading down 14.44 percent at 800.00 (0920GMT).