Shares of North Shields-based “delivered wholesale” business Kitwave Group plc fell 22% after it warned in its interim results that it has revised its expectations for the financial performance of the group “during the current financial year and beyond.”

In its outlook, Kitwave said: “Since the pre-close trading update, the volatility in the macroeconomic backdrop has caused a more pronounced fragility in consumer confidence which is adversely affecting volumes in the destination leisure sector.

“Whilst footfall is up from the prior year, consumption is down in certain areas. This impact has been particularly visible in our higher margin tourism-based depots.

“Employer National insurance increases (c.£1.8m in FY25 and £2.7m in FY26) will increase the group’s costs during H2 of the financial year and beyond. The group no longer believes it will be able to offset these tax increases.

“The combined effect of recent lower than expected foodservice consumption, continued investment in the South West and the employer National Insurance cost increases has resulted in the directors revising their expectations for the financial performance of the Group during the current financial year and beyond.

“The group now expects to report FY25 adjusted operating profit to be in the range of £38.0m to £40.5m.”

For the six months ended April 30, 2025, Kitwave reported revenues up 26.7% (3.1% like-for-like) to £376.2 million and adjusted operating profit up 21.9% to £13.2 million.

An increased interim dividend of 4p per share (H1 2024: 3.85 pence per share) was declared.