The firm, which also posted a big fall in first-half profit, said it was suffering from a decline in interest in its Lord of the Rings products, which had boosted previous years' sales. The firm manufactures and sells fantasy figures for games based on the books.
"As first reported last year, our business continues to experience the downside of a trading cycle as the Lord of the Rings 'bubble' deflates," the firm said in a statement. "We can now see that our full-year sales, and therefore profits, are likely to fall short of current market expectations," it added.
Pre-tax profit for the six months to November 27th was £100,000, down from £7.7 million pounds in the comparable period of the year before.