The owners of Lindal-based home fragrance manufacturer Wax Lyrical has issued a profit warning as it braces itself for an end to 10 years on consecutive growth.

Portmeirion – the Stoke-on-Trent based homeware distributor and manufacturer – said it expects sales for the first four months of the year to be 10 per cent down on the same period in 2018.

The announcement, made to the London Stock Exchange, saw the group’s share price fall by 25 per cent.

The warning comes despite “good” sales growth in its two largest markets – the UK, which was up five per cent, and the United States, up eight per cent on the same period last year.

However, the company said that an anticipated slow down in demand in its export markets would take a bite out of its pre-tax profits. Sales in South Korea – where it is looking to develop new products to “grow this market for the long term” – had been lower than expected.

 “While the total effect on group sales is expected to be less than that for the full year, the Board now expects profit before taxation for the full year will be significantly below market expectations,” it said in the statement.

“We believe our long term strategy is the right one and are pleased with the progress we are making in other areas to protect and grow our brand portfolio.”

Portmeirion added that it did not “anticipate this leading to a change in our expectations for dividend payments in the current year”.

The profit warning comes just two months after the group reported a tenth consecutive year of growth.

While revenues increased by 5.7 per cent to £89.6 million, pre-tax profits rose by 10.1 per cent to £9.7m for the year ending December 31.

Wax Lyrical – which was sold in 2016 by its then parent company Lighthouse Holdings to Portmeirion for £18m – had made a significant contribution to the group’s success, with a sales growth of 11.1 per cent.

It develops, manufactures and delivers luxury scented candles and reed diffusers from its Lindal factory and exports its products to more than 40 countries around the world.