- 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 its financial 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 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.

InnovaDerma estimated that the aggregate cost of those related factors in the normally second-half-weighted 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.

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.

Story provided by