"Severe shortages erratic deliveries and a high absence rate because of the Omicron variant have hit sales at a Liverpool firm specialising in cake decorating.
Real Good Food, which is based in Wavertree, said the issued affected its ability to fulfil customer orders during December and January which led to its sales being "much lower than anticipated".
In a statement issued to the London Stock Exchange, the AIM-listed company said it had "entered its seasonally busier second half of the year in good shape and the board had expected to report on further progress being made after a solid start to the year".
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The business said: "As reported in the half year results in December 2021, revenue and EBITDA in the first half were both well ahead of last year's first half performance, with revenue back to pre-Covid levels (H1 FY20).
"Revenue for the second half of the year is expected to be at a similar level to the second half of last year, despite a pick-up in sales to the wholesale sector.
"International sales, which had been expected to show double digit growth are going to be marginally below last year's numbers.
"Overall, with increased costs during the second half of the year, the group is expected to make a small profit at EBITDA level broadly similar to underlying EBITDA reported in the prior year.
"Cash at the half year was £2.7m, a modest cash inflow is expected to be reported for the second half of the year."
