A Wilmslow-based supplier of bathroom and kitchen products has warned supply chain disruption caused by the coronavirus outbreak will "likely" have impact on this financial year and next.
Norcros, which owns seven brands in the 海角视频 including Johnson Tiles, Triton and Merlyn, made the statement in a trading update for the 10-month period to February 2.
The listed company said the coronavirus had “little short term impact to date”.
However, “based on slower than anticipated return to full production at our China-based supplier, we do now envisage that the supply chain disruption is likely to have some impact on the seasonally important remainder of this financial year and early next”.
“The situation however remains fluid and is being closely monitored and actively managed,” it added.
In the update, the group said it anticipated full-year profit to be below expections.
It said: “The board continues to remain confident that the group’s leading market positions, strong brands and financial strength will deliver further growth although in the short term it is now expected that underlying profitability for the year to March 31, 2020 will be below market expectations albeit ahead of last year.”
The group said overall year-on year-revenue growth was similar to what was achieved in the first half.
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In November, the firm reported revenue had risen to £181.2m for the six months to September 30, up from £162.2m in 2018.
However, it said its export performance remained “subdued”.
“The group has continued to win market share in its major markets despite conditions remaining challenging since its interim results were announced in November,” it said.
Norcros said it had seen no market improvement in South Africa in the second half, with activity levels in the construction sector “markedly lower” at the start of quarter four.
“In response to reduced demand we are evaluating a number of initiatives which will reduce costs and improve profitability.”
Norcros is due to publish its full-year trading update on April 16.