AN Oldham-based company with its main manufacturing base in China says it is "monitoring closely" the development of the coronavirus outbreak.

In a trading update delivered on the London Stock Exchange, Ultimate Products, headquartered at Manor Mill in Chadderton, sounded an ominous warning as it reported "solid financial and operational progress".

A statement said: "The extension of the Chinese New Year holiday by nine days to Monday ( February 10) in the Group's main manufacturing areas is expected to cause production delays.

"As further information becomes available, we will continue to evaluate any short or long term impact on the group's business and take all necessary action to mitigate any disruption.

"We have extensive experience of managing supply chain disruptions in China, including those caused by previous viral outbreaks.

Revenues grew 2.8 per cent to £67.7 million for the six months ended January 31, compared to the same period last year.

Ultimate Products has design, sales, marketing, buying, quality assurance, support functions and warehouse facilities across two sites. Oldham's Manor Mill, the group's head office, includes a 20,000 sq ft showroom that showcases each of its brands. In addition, it has an office and showroom in Guangzhou, China and in Cologne, Germany.

It employs 300 people in Oldham.

The company has renewed its exclusive trademark licence agreement for the "Russell Hobbs" brand in the UK and EU until March, 2023.

This spans a range of none-electrical kitchen and laundry products, but does not include Russell Hobbs electrical appliances.

Ulitmate Products has also successfully extended its banking facilities to 2024, with funding headroom at January 31 of £13.2 million.

It has also agreed terms on a 10-year lease extension at Manor Mill, the group's head office and second distribution centre in Oldham, in anticipation of planned investment in the site.

Ultimate Products is an owner, manager, designer and developer of a series of well-known brands focused on the home, selling to over 300 retailers across 38 countries.

It has six product categories: audio; heating and cooling; housewares; laundry; luggage; and small domestic appliances. Its brands include Beldray (laundry, floor care, heating and cooling), Intempo (audio), Salter (kitchenware), Constellation (luggage), and Progress (cookware and bakeware).

The Group's products are sold to a broad cross-section of both large national and international multi-channel retailers as well as smaller national retail chains, incorporating discount retailers, supermarkets, general retailers and online retailers. Its best-selling products include frying pans, mugs and speakers, selling approximately one million of each every year.

The board currently expects full year profitability for the year to be in line with market expectations.