10th Feb 2020 10:27
(Alliance News) - UP Global Sourcing Holdings PLC said Monday its revenue in the first half increased but expects the deadly coronavirus to delay production, as the majority of its manufacturing is based in China.
For the six months to January 31, UP Global expects revenue to rise 2.8% to GBP67.7 million from GBP65.8 million a year before.
The branding company said it was able to renew its exclusive licence agreement for the Russell Hobbs trademark in the UK and EU until March 2023. The licence covers non-electrical kitchen and laundry products but not Russell Hobbs electrical appliances.
Elsewhere, Ultimate Products said it has secured a 10-year lease extension for its Manor Mill head office in Manchester and distribution centre in Oldham, where it plans to invest.
Looking ahead, UP Global said it is closely monitoring the coronavirus outbreak in China.
"The extension of the Chinese New Year holiday by nine days to today in the group's main manufacturing areas is expected to cause production delays," UP Global added.
"As further information becomes available, we will continue to evaluate any short or long term impact on the group's business and take all necessary action to mitigate any disruption. We have extensive experience of managing supply chain disruptions in China, including those caused by previous viral outbreaks. "
UP Global said financial year 2020 profit is expected to be in line with market expectations.
Shares in UP Global Sourcing were down 6.3% in London on Monday at mid-morning at 61.39 pence.
By Paul McGowan; [email protected]
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