Potter & Moore (LSE:PAM) stood at 21.87p, down 9%, in morning trading after confirming its first-half revenue will fall below the prior year.
The beauty and well-being brand manufacturer faced a challenging first quarter that directly mirrored wider sector conditions.
Revenue for the financial year to date has consequently fallen behind the same period last year. This initial decline remains broadly in line with internal expectations that are heavily weighted towards the second half of the year.
Gross profit margins are also tracking significantly below the previous year because of recent input cost inflation. The business anticipates recovering these rising costs through higher consumer sales prices over the coming months.
First-half gross profit margins will ultimately remain lower than the previous comparative period. Second-half recovery plans rely heavily on securing new retail listings and implementing fast-follow promotional activities.
Negotiations for some of these crucial sales price recoveries and special buying initiatives currently remain ongoing. Cash balances stood at £4.1 million before lease liabilities and borrowings at the end of July.
This liquidity figure represents a moderate increase from the £3.6 million recorded at the end of March. A final dividend of 0.55 pence per share awaits shareholder approval at the annual general meeting today.
