Potter & Moore (AIM:PAM) told investors that first-quarter revenue is running behind the same period last year, though broadly in line with management's own expectations ahead of its annual general meeting today.
The British beauty and well-being brand owner and manufacturer said gross profit margin is also tracking below last year, reflecting input cost inflation that has yet to be offset by price increases.
It expects both first-half revenue and gross margin to remain below prior-year levels, with the annual plan still weighted to the second half.
That second-half plan rests on new retail listings, special buy activity, fast-follow product launches and sales price recovery, some of which remains under negotiation.
Cash on hand stood at £4.1m as of 31 July, up from £3.6m at 31 March, stated before lease liabilities and borrowings.
In London, Potter & Moore shares slumped 8.3% to 22p after the update.
News Intelligence what this means for the company
Potter & Moore flagged first-quarter revenue below prior year and acknowledged gross margin compression from input cost inflation not yet recovered through price increases. Management expects the first half to remain below prior-year levels, betting recovery on second-half retail listings, special buys, and price increases—some still under negotiation. The company's cash position improved to £4.1m from £3.6m, but the earnings miss and margin squeeze signal near-term headwinds in a business already contending with labour cost pressures.
The Q1 miss and first-half guidance below prior year materially weaken near-term momentum. Potter & Moore's recovery thesis now hinges on execution of unfinalized retail negotiations and price recovery in the second half—a compressed timeline with execution risk, against a backdrop of persistent input cost inflation that has already eroded margins.
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