Tekmar Group PLC (LON:TGP), the maker of systems to protect subsea cables and pipes linking to offshore wind farms and oil platforms, has warned about the impact of coronavirus on its full year profits.
The AIM-listed company said it had expected some sales from China in the fourth quarter of its March-end financial year and had represented around 10% of its full year revenue forecast.
Cost estimates were also based on pricing for components sourced from the People’s Republic.
“China's necessary and prudent response to the outbreak of the coronavirus, including the restriction of travel in the country, is affecting the Group's performance materially in a number of ways,” Tekmar said.
It now expects underlying profits (EBITDA) for the 2020 financial year will be “broadly in line” with what was achieved the previous year.
Berenberg, which was broker on the company’s 2018 flotation, had been forecasting EBITDA to increase from £4.8mln in 2019 to £7.4mln in 2020.
Chairman Alasdair MacDonald said: "The disruption caused by the outbreak of the coronavirus on the group's activities and performance has been unpredictable and rapid, impacting the group materially in our crucial, heavily weighted Q4 period.
"With the situation in China and the surrounding APAC countries evolving, we are not yet able to evaluate the full impact of the virus on FY21 and will provide further updates as necessary."