The laser technology company Gooch & Housego issued a profit warning yesterday which saw its shares plunge nearly a fifth.
Gareth Jones, the chief executive, warned that demand for its so-called Q-switch equipment, which magnifies the heat of lasers, had fallen across the world, particularly in its key market of China.
After a poor four months, profits for the year ending in September were now likely to come in "significantly below" the board's expectations, the company warned. Its Q-switches are used in a wide range of factories using laser technology.
The chief executive said: "We find ourselves exposed to the cyclical nature of the industrial sector that last year helped us to record record results."
Shares in the AIM-listed company fell 79.75p to 383.75p.