Wagon, the car parts maker, has suspended trading in its shares, after issuing a profit warning.
Only a week after listing on Aim, London’s junior stock market, the company which supplies parts for Ford, Peugeot, Citroen, Renault, Fiat, Audi and Mercedes-Benz said there had been a “recent and steep deterioration” of the European automotive market.
As a result, profits would be below previous expectations, though it would not state figures, reported Financial Times.
In the year to March, Wagon suffered losses of £1.9m.
It has blamed poor sales and a bad cash position for a lack of liquidity, which has forced the company to suspend trading so that its main owner Wilbur Ross can enter refinancing talks with its key bank Royal Bank of Scotland.