Online wholesaler Blueheath looks set to implement further cost-cutting in order to reach operational profitability.
In an AGM statement, chairman Richard Rose said that business had been affected by the latest round of restructuring which included the closure of the company's Tamworth operation and the transfer of business to its warehouses in the North West and South East.
He said: "This move is now largely complete, however customer service and fulfilment levels from our Thurrock site were adversely affected during the move, leading to a negative short-term impact on sales."
The company also said that it expected to return to historic levels of fulfilment and delivery times shortly.
The restructuring is part of a wider review of the business by the new management.