Hygiene group Byotrol has lowered market expectations for its up-coming full-year results because of the uncertainty surrounding the Omicron variant of Covid-19.
The Cheshire-headquartered company said it is expecting IP sales to offset the majority of the anticipated shortfall in profit on product sale
However it added that "projecting the timing of IP sales is even more uncertain".
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The business did say that it expects to be both profitable and cash generative in the second half of the year.
The update comes as Byotrol revealed its results for the six months to the end of September 2021 which show its revenue fell from £6.6m to £3.1m.
It also posted a pre-tax loss of £141,000 compared to a profit of £1m during the same period in 2020.
A statement issued to the London Stock Exchange said: Whilst this pandemic is far from over, we find ourselves in a much better position than we were in late 2019.
"We have an increasingly integrated, profitable, IP-rich and cash generative business in a much expanded market with enhanced annualised growth.
"Accordingly, the board remains highly confident in medium and long-term growth and, with the benefit of a stronger balance sheet and contractual cash flows from prior IP sales or licenses, is investing further in the team to deliver it, particularly at leadership level in sales and marketing.
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"After a challenging H1, particularly in hand hygiene products, sales in October and November have been ahead of the average for H1 and the order book is now building strongly, sitting currently at £850k versus an average of £300k in H1 and approximately £350k pre-Covid.
"Notably this demand includes a number of sizable orders from new customers in both the º£½ÇÊÓƵ and overseas.
"Market demand and gross margin, however, is likely to remain volatile in the short term and is subject to a potential negative impact of full and partial lockdowns on the demand for consumables.
"This is especially so at the current time with the current uncertainty introduced by the new Omicron variant of Covid.
"Third party interest in our IP and related commercialisation remains strong, with a number of active client discussions under way.
"Such agreements can be profitable, but we cannot say with certainty which agreements will close and when. We anticipate our first material royalty income in the current financial year.
"Whilst we expect to be both profitable and cash generative in the second half of the year, with these uncertainties it is difficult to predict the quantum at this juncture.
"At present we are expecting IP sales to offset the majority of the anticipated shortfall in profit on product sale, but projecting the timing of IP sales is even more uncertain, so we feel it prudent to now reduce market guidance for the current financial year.
"Regardless of the timing of our revenues and IP commercialisations over the next four months we remain very well positioned for future growth and are excited by the significant opportunities ahead of us."
