Shares in technology group Hills have dropped more than 16 per cent after it lowered its full year profit guidance by up to 40 per cent.
Hills now expects to post an underlying full year profit of between $11 million and $14 million, well below the $18.5 million to $19.5 million range it flagged in February.
The company said that while sales in its core security, audio and communications businesses were close to its internal forecasts, it expected lower government spending and project deferrals across the construction, health and mining sectors to hurt earnings.
In response, Hills' shares dropped 13 cents, or more than 16 per cent, to 66 cents as of 1230 AEST.
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