Toilet roll maker Accrol has suspended its shares on London's junior market while the board considers the impact of a "challenging" trading period on the company's net debt position.
Tough conditions are having a significant effect on the trading performance of the company for the 2018 financial year, Accrol said in an update.
The firm, which listed on the Alternative Investment Market (Aim) just before the Brexit vote with a valuation of £93m, said increases on input costs were being driven by wholesale price inflation.
Accrol has so far been unable to offset costs by increasing its own prices.
The company is also facing higher than anticipated costs in preparing the business for growth and a bigger than expected fine over a health and safety issue, which it said could have a material impact on the company's cash position.
"Based on current market conditions, the board now anticipates that earnings will be significantly below existing market forecasts for the current financial year, and as a consequence net debt will be correspondingly higher at year end," Accrol said.
The board will also review the dividend for the current financial year.
Shares in Accrol closed at 132p yesterday, which was above the company's 100p float price but down from a high of more than 160p in May.