Shares in Coral Products PLC (AIM:CRU) tumbled 26% to 12.2p after the plastic products maker scrapped the interim dividend it had announced just over a month ago due to a deterioration in trading.
Annual revenues will now be 10% below last year’s £35.2 million with margins hit by the lower sales, said a trading update.
Customers running down stocks rather than re-ordering were blamed for the problems.
As a result, profits in the year to April 2024 will be below forecasts with 2025 also likely to undershoot, added the plastic containers specialist.
A restructuring programme has been launched to save costs and Lance Burn, chief executive, said this is an opportunity to "reset the business".