Apollo Metals, the Birmingham-based materials group which specialises in the aerospace sector, reported a big drop in half-year profits last week, blaming a slowdown in engineering demand for the 23% fall.
Interim profits came in at £2.01m, down from £2.6m this time last year.
The company announced in March that it had signed a 10-year, £500m agreement with the military aircraft and aerostructures division of British Aerospace to supply it with all its metallic material needs.
The news coincided with a warning that gearing up for the contract and a short-term tailing off in general engineering orders would knock profits before the company advanced with the extra work.
Analysts said the profits announced last week were still slightly below expectation, and scaled back their forecasts accordingly.