Shares in Conduit, the telephone directory services group, have collapsed on the Neuer Markt after the company warned the delay in deregulating the British market would hit the group's sales in the current year.

Conduit shares, which peaked at #20 (£15.74) last October, fell #2.42 to #6.08 on the Neuer Markt and are at their lowest level since flotation last year.

Conduit's results for the year to the end of March were broadly in line with market forecasts, with revenues almost trebling from #11 million to #30.4 million and call volumes up from 17.3 million to 45.2 million. Losses before interest tax and depreciation were #5.3 million, reflecting launch costs and the opening of call centres in Dublin, Cardiff and Biel in Switzerland.

Conduit is already in the British market where it provides directory services for Orange and Telewest. Conduit chief executive Mr Liam Young said there had been delays in deregulating the British market and this would delay Conduit's plans to introduce a directory service under its own access code.

The delay in generating revenues from its British operation was the main factor in the sharp downgrading of Conduit shares. Trading yesterday, however, was very light and there was no concerted selling. But companies like Conduit tend to be valued on their future revenues and any question marks over those revenues tend to be reflected quite dramatically in the share price.

Davy analyst Mr Scott Rankin said in a research note that he had factored in #12.5 million in revenues from an "own-brand" operation in Britain out of forecast total revenues of #86.8 million. He added, however, this has nothing to do with trading conditions or management's running of the business, "both of which look fine".

Mr Young said Conduit expected to at least double last year's sales of #30 million. "How much more than doubling will depend on the UK and we have no control over the pace Oftel will move on deregulation," he said.