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(Alliance News) - 4imprint Group PLC on Thursday said the spread of Covid-19 in the UK and North America has hurt demand since last week.
The FTSE 250-listed marketing company said that from March 10, daily orders have reduced significantly, resulting in a decline of around 40% compared to the same period last year. It added that it expects the fall in demand to hurt earnings in its current financial year to the end of December.
"We are unable to predict how long this lower level of order activity will last, but clearly the effects of Covid-19 will impact revenue and profitability in the current financial year. There is no historical precedent in the business for the demand reduction that we are seeing. At this point the speed and volatility of the unfolding crisis makes accurate or responsible forecasting very challenging."
For the year to December 28, 2019, the company posted pretax profit of USD54.0 million on revenue of USD860.8 million.
4imprint added that although the company has started to recover with regard to production capacity in Chinese factories, it is concerned about how the spread of Covid-19 could hurt its supply chain in North America and the UK.
As at the end of February, the company had cash of USD51 million and no debt.
4imprint shares were trading 15% lower at 1,420.00 pence each on Thursday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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