Shares in the UK's biggest cider maker, HP Bulmer, lost nearly half their value after the company warned that its profits would fall short of expectations.

The maker of Strongbow and Scrumpy Jack ciders also said that it would be meeting bankers and lenders to discuss its future.

Shares in HP Bulmer have been under pressure since the beginning of September when it said it had uncovered �3.3m of unidentified promotional costs.

The stock has lost nearly 60% of its value since then and its financial problems have led to the departure of both the chief executive and the finance director.

On Monday morning, shares fell a further 46%, but recovered some of their losses to stand 35% lower at 126.5 pence at the end of the day.

No shareholder dividends

The company said that the poor performance of new drinks in the UK and internationally, as well as increases in pension costs, would contribute to a �14.5m shortfall in profits during the current financial year.

Bulmer said it would also be writing off �4.7m for investment in new product development.

The firm said it was scrapping the final dividend for the past financial year and was not intending to pay a dividend this year.

Bulmer is now going to meet its bankers and lenders to talk about its financial position.

The company is being run by an interim chief executive, Colin Brown, who was appointed last month.