LONDON (ShareCast) - Shares in Quadnetics plunged after the CCTV and networked video systems supplier warned trading in the first half has been weaker than forecast following the delay of a number of orders.

The group now expects consolidated underlying profits for the year to 31 May to be approximately in line with last year, with a ‘slightly’ higher weighting towards the second half.

A slowdown in the finalisation of orders and delivery schedules from central government customers in the UK and from existing customers in the Middle East has been most notable, said Quadnetics.

Synectics has experienced additional problems with a key component supplier for its new digital product suite, contributing to delays of about three months in expected delivery dates.

The group said the primary cause of these delays has now been resolved, adding that actions have been taken to reduce costs, though these involve one-off expenses in the short term.

“Taking into account the growing order book and bid pipeline, the imminent ramp up of sales of Synectics' new products, and actions already taken to reduce costs, the board is confident Quadnetics will rapidly resume the solid pattern of profits growth demonstrated over the past several years,” said the group.

In September, Quadnetics saw full-year profits soar by 199% and said it was looking forward to another year of good progress.

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