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Personal care and life science products maker InnovaDerma warned on profit as the impact of Covid-19 and on-line advertising costs hurt peformance in the second half of the year.
The significant impact of Covid-19 and the combination of higher on-line advertising costs, lower margins of direct-to-consumer product bundles and the closure of our bricks and mortar retail channels had impacted profitability, the company said.
'As a result, the group expects to make a much-reduced profit compared to the previous year,' it warned.
The company said estimated that the aggregate cost of these related factors in the normally profit weighted second half of the year had been in excess of £0.9m.
For the 12 months ended 30 June 2020, revenue was expected to be up 2.3% to 13.2m on-year.
The cost of advertising on Facebook rose 'suddenly and sharply' in the last quarter of the financial year which was primarily the lock-down period, the company said.