Software Radio Technology is putting its personal mobile radio business into administration.
The shares more than halved from 5.25p to 2.5p each, which values SRT at £2.45m.
Delayed licence payments led to a shortage of cash in the PMR subsidiary and it was not able to trade as a going concern.
The marine tracking technology subsidiary and the holding company are ring-fenced from the PMR business.
The subsidiary’s boss, Dr George Kyprios, is stepping down from the SRT board and left the company.
Full year group revenues will be lower than expected due to the closure of the PMR business and there will also be balance sheet write-downs.
Interim revenues dropped from £1.91m to £1.24m in the six months to September 2008. The loss increased from £992,000 to £2.17m.
There was still cash of £1.58m in the balance sheet at the end of September 2008. However, some of that cash has flowed out of the company since then. SRT says that there are cash reserves of around £1m.
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