LONDON (ShareCast) - Shares in Densitron Technology plummeted Tuesday, after the designer and manufacturer of information display systems said that its operating profit for 2012 will now be materially below that achieved in 2011.
This follows a previous announcement in November (Xetra: A0Z24E - news) when the company said its full year results are expected to be behind market expectations. However, since then the company experienced a delay in some of its orders that were to be booked and delivered to customers in the period up to the year-end.
The company was keen to stress that this was outside of its control, and said its balance sheet remains "strong", while its only bank debt is to support working capital.
Grahame Falconer, Chief Executive Officer of Densitron, said: "The end to the year was disappointing, but reflects how cautious the market remains, with customers not wishing to overcommit. However, orders booked in the year were ahead of those booked in 2011, which, together with the introduction of new services and products, gives us confidence for 2013."
The company also revealed that it has been unable to enter mediation with the parties involved in the legal proceedings that habe been taken against it (relating to thelease of a property located in Newcastle), because the other parties have been unwilling to do so.
Falconer added: "It is disappointing that we were unable to get the other parties to the litigation to agree to a mediation process but the Board is continuing to try to resolve this matter by way of a negotiated settlement."
The group's share price had fallen 19.18% to 7.38p by Tuesday afternoon, taking the total decline for the year to 38.54%, equal to 4.62p.