Online bathroom retailer Victorian Plumbing is bracing for its margins to be hit during the second half of its financial year because of "ongoing inflationary cost pressures".
The Merseyside-headquartered firm added that it is "acutely aware" that its customers are also facing the same issues and that it will "adopt a careful approach to price rises".
In a statement issued to the London Stock Exchange, the company said that meant it is choosing to temporarily absorb some additional costs.
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Victorian Plumbing added that it expects both gross profit margin and adjusted EBITDA margin to be "slightly lower than previously anticipated".
A statement issued to the London Stock Exchange said: "Victorian Plumbing has continued to trade in line with the dynamic set out in the announcement of our full year results and trading update on 9 December 2021.
"Our relative trading performance has been encouraging against a backdrop of lower customer demand.
"Revenue for the four months ended 31 January 2022 was down 3% year-on-year, but up 38% on the same period two years ago, whilst marketing spend has now started to normalise.
"As we look to the second half of the financial year, we note that the comparative period performance for revenue eases and so we expect to return to having modest year-on-year growth through H2 2022.
"There are however ongoing inflationary cost pressures that we face. We are acutely aware that our customers are also managing inflationary pressures and will adopt a careful approach to price rises, which means we are choosing to temporarily absorb some additional costs.
"We therefore expect both gross profit margin and adjusted EBITDA margin to be slightly lower than previously anticipated.
"We remain confident in our ability to continue to take market share and in our long term growth plans."
When the company announced its full-year results in December 2021, its shares fell by more than 40%.
The figures revealed that in the 12 months to the end of September, Victorian Plumbing achieved a revenue of £268.8m, up from £208.7m, but its pre-tax profits dipped from £23.7m to £19.7m.
