(Sharecast News) - Shares in Accsys Technologies plummeted on Friday after the high-performance wood products group delivered a profit warning on the back of weakness from construction markets in the UK, Europe and North America.
The company, which makes wood-based building materials, said trading conditions in the building materials, construction and residential housing sectors have "continued to soften" as a result of rising interest rates, high inflation and slowing residential activity.
In a trading update for the first quarter, Accsys also said its distributors in the US and Europe have also seen "significant volume declines".
While the first four months of the financial year ending 31 March 2024 have seen higher revenues, the company reckons sales volumes for the whole year will be below current market forecasts "with EBITDA likely to be significantly below expectations".
The company said: "In view of this trading environment, Accsys' executive team is taking immediate and decisive steps, in particular measures to reduce operating costs, optimise working capital and implement incremental cost saving initiatives. In parallel, actions are being taken to accelerate Accsys' sales approach to stimulate demand in its core and emerging markets."
Shares were down 22% at 76p by 0830 BST.
Accsys Tech (AXS)