(Alliance News) - UP Global Sourcing Holdings PLC, a developer of consumer goods brands, on Thursday said that its manufacturing operations in China have now broadly normalised, however, a small but a growing number of customers in the UK and Europe have notified the company of their intention to defer or put on hold orders.
As a result of the deferment of orders, the company is anticipating a significant drop in second half revenue compared to expectations, which will inevitably impact annual profitability.
UP Global currently estimates that the delays experienced in China earlier in 2020 to result in an impact of around GBP800,000 on annual revenue.
For the first half to January-end, the company anticipates underlying earnings before interest, tax, depreciation and amortisation to total GBP7.2 million, up from GBP7.0 million a year ago. Underlying pretax profit is predicted to total GBP6.2 million, up from GBP5.9 million.
The company is slated to release its first half results on April 30.
Shares in UP Global Sourcing closed up 5.5% at 32.70 pence each in London on Thursday.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Up Global (UPGS)