Telecommunications consultancy, Glotel has warned that its year-end results are likely to be lower than expected following a staffing freeze among its US telecoms clients.
The group, which less than six months ago recorded record-high turnover figures in the US, has seen its revenues fall by 28 per cent since the industry took a sudden, and unexpected downturn.
The loss of one of its biggest accounts, Northpoint Communications, which last month filed for bankruptcy, has also been a blow to the company, resulting in a bad debts provision of around £1m.
Despite the slump in American sales however, UK trading remains in line with director's expectations, and Glotel says it is confident that the group will return to its "normal growth pattern" once market conditions improve.
Following the profit warning, analysts cut pre-tax profit forecasts from £8m to £5.3m.