Litho Supplies expects profits for the six months ended 30 June to "be below market expectations" despite sales being on target.


The firms shares fell 42.5% to 32.5p on the news.


Chief executive Michael Hammond said sales were "where we want them to be, but market conditions are tough, and we have to go through a period of difficult change."


He said performance would improve in the second half of the year as a result of the reorganisation within the company.


Litho Supplies has acquired AB Dick Belgium for a nil consideration through its Belgian subsidiary, AM Graphidec.


Hammond said the acquisition would provide additional turnover for AM Graphidec, and also provide access to AB Dicks customer base.