UK based ventilation systems manufacturer Titon has said revenues were down by 17.1 per cent for the final three months of 2008 compared to the same period in 2007.
The group said further savings would be needed beyond the job cuts, cost control and working capital management programmes announced last year.
It also said it wanted to focus on strengthening its presence in the mechanical ventilation market to exploit possible opportunities.
In the last financial year Titon cut its workforce by 27 per cent to 168 and posted a £60,000 loss before tax - compared to a £460,000 profit the year before.
Managing director David Ruffell said: 'We cannot be specific yet about what we will be doing as regards cost savings.
'Within our half year results, which will be released in May, we will be able to give a clearer indication of what we intend to do.'
The interim management statement for the period October 1 2008 onwards said the expected market slowdown had worsened since the end of the last financial year.
The statement said: “Whilst the cost control and working capital management programmes have delivered expected results, the further declines in market volumes will require additional cost saving measures to be introduced.”
The company has traditionally focused on passive ventilation, but over the past four years it has increasingly developed its mechanical ventilation offering because of the opportunities offered by tighter buildings, the Code for Sustainable Homes and the targets for zero carbon homes.
Mr Ruffell said: 'The regulations have created opportunities for powered ventilation and we believe that this will continue. The Code for Sustainable Homes is driving take up of mechanical ventilation with heat recovery and we will be launching further products later this year.'
Crucially Mr Ruffell believes the Government needs to encourage new building to stimulate the economy.
He said: 'They have to get ‘new build’ going. They need to unblock the mortgage market, as I believe people do now want to buy property, but cannot get a mortgage. However, social housing is continuing at a reasonable level and the Government needs to continue to support that.'