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Power control solutions developer XP Power reported a 36% drop in annual profit, owing to a slowdown in the semiconductor market and the US-China trade war.
The company said the coronavirus outbreak had added 'caution and uncertainty'.
Pre-tax profit for the year through December fell to £24.0m, down from £37.6m on-year.
Revenue rose 2% to £199.9m, but gross margin contracted 2.2 percentage points to 45.1%.
XP Power declared a full-year dividend of 91.0p per share, up 7% on-year.
'We delivered a resilient performance in 2019 despite facing a number of challenges,' chairman James Peters said.
Peters said growth in the company's healthcare, industrial electronics and technology markets remained robust.
However, that growth was offset by a cyclical slowdown in the semiconductor equipment manufacturing market and pressure on gross margins from the increase in US trade tariffs on Chinese goods and changes in product mix.
Still, Peters said trading conditions in the early months of 2020 gave grounds for optimism.
'Signs of a recovery in the semiconductor equipment manufacturing sector are reflected in our strong order intake in the fourth quarter of 2019,' he said.
'We also expect benefits from the transfer of production from Minden to Vietnam in the second half of 2020.'
'However, we are affected by certain external events, such as the impact the outbreak of the COVID-19 virus had on our supply chain.'
'This introduces some caution into our outlook, but we remain encouraged by our healthy order book.'?