Shares in Latchways, the Devizes-based firm making protection equipment for people working at height, lost a fifth of their value this week after it warned that this year’s profits will be much lower than last year’s.
The firm blamed a combination of factors including continuing challenging European market conditions, delays in the European offshore wind energy business and short term de-stocking by one of its largest US customers. 
As a result, it said this year’s pre-tax profits are likely to come in between £4.5m and £5.5m. Pre-tax profits in the year to the end of March were £6.8m. The previous year they had been £10.3m.
In a trading update to the London Stock Exchange, the firm said: “We have taken steps to limit spending except on sales resources and new product development, where investment will continue.
“Despite these setbacks the company remains cash generative with a strong balance sheet. Cash balances at the end of September were in excess of £10m.
“Given the temporary nature of the current challenges, we expect to maintain our dividend for the current year with the expectation of resuming profitable revenue growth next year.”
Latchways’ shares, which started the week at £10.02, fell this week to 804p as investors digested the update.
Its interim results for the six months to September 30 will be published on November 17.
