InnovaDerma PLC (LON:IDP) chairman Haris Chaudhry said the life sciences and beauty products group had delivered a strong revenue performance over the financial year just ending.
But profits are likely to undershoot expectations, thanks to significant one-off investments made in the final quarter, allied to stock availability issues for its Roots hair care range.
The owner of the hugely successful Skinny Tan brand said the company's direct to consumer (DTC) platform had been "key to driving sales".
Strong top-line performance
InnovaDerma expects turnover for the year to end-June to be in the order of £11mln, up 23.5% on the year earlier, with pre-tax profits coming in at around £650,000.
"While our profit for the year will be below earlier expectations, in part due to supply chain issues and launch related costs in the second-half, I am encouraged by our good progress in implementing our strategy and creating a solid business platform to enable significant growth in the new financial year and beyond," said Chaudhry.
Looking ahead, the Roots brand looks set for success as it will be stocked in some of the largest UK Boots stores and almost all of Superdrug's outlets, "underlining our ability to develop products in-house and turning them into well-recognised beauty brands", the chairman added.
"This, together with our recent successful product launches and global expansion through new retailers and distributors, means the company is strongly positioned for future growth," he went on.