Expansys' shares lost half their value this morning following a profit warning at the Peter Jones-owned e-tailer.
In a trading update, the consumer electronics specialist said trading for the second half of its financial year has been below expectations, meaning that profits for the year will be "substantially below market estimates".
Expansys is one of 16 firms Dragons' Den star Peter Jones lists in his portfolio on his website, alongside the likes of Reggae Reggae Sauce and Wonderland magazine.
The e-tailer, which also provides e-commerce solutions to mobile phone companies such as HTC and Motorola, enjoyed a solid fiscal 2012 as revenue rose 33 per cent to £108m and underlying profit hit £4.3m.
But its interim 2013 results, for the six months to 31 October, revealed pre-tax losses of £2.1m as its European division struggled.
In this morning's update, AIM-listed Expansys added it was confident that its restructuring activities will pay off for next year.
"The Group has completed the cost savings forecast in the retail business and we will enter the next financial year with a lower cost base and an appropriate structure to support growth," it stated.
"The Board is undertaking a strategic review in order to accelerate its objective of becoming an end-to-end solutions provider to MNOs [mobile network operators], MVNOs [mobile virtual network operators] and OEMs. This is not currently envisaged to involve a sale of the company.
Expansys' share price – which was riding as high as £15 in April 2010 – sank sharply this morning from 77.5 pence to 37.5 pence, before recovering to about 50 pence. Jones owns a 43 per cent stake in the firm.
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