Board changes & Trading Update

RNS Number : 9440B

Swallowfield PLC

09 April 2013

 



Swallowfield plc

("Swallowfield" or the "Company")

Board changes and Trading Update

Swallowfield plc, the full service provider to global brands and leading retailers in the cosmetics, toiletries and household goods sector announces that the Board has received a letter from Stephen Boyd outlining his resignation as Chairman and Director with immediate effect. Stephen has recently been instrumental in leading a consortium of private investors which has saved Axminster Carpets from administration, and following a review of his ongoing workload, has concluded he no longer has the necessary time available to adequately commit to his role as a Director of Swallowfield.

Martin Hagen, currently Deputy Chairman, will act on an interim basis pending the appointment of a permanent Chairman.

Trading has continued to be affected by weak consumer demand across the UK and European markets and this has been exacerbated by a strong and prolonged period of promotional activity undertaken by the major brands. We now anticipate that total revenue for the year will be approximately 4% below the latest market forecasts. We continue to expect a turnaround in the profitability of the Company from the loss in the first half, but this turnaround will be less strong than we had earlier predicted.  We anticipate that the Company will be broadly break-even at a profit before tax and exceptional items level for the full year.

The cost savings and efficiency improvements that the Company has already implemented are now coming through and further planned savings will begin to have a positive impact in the first half of the next financial year.

Whilst the Board will make no decision on the final dividend - which is normally paid in November - until later in the year, it is unlikely that the current market forecast for dividends will be met in the current year.

For further information please contact:

Swallowfield plc

Ian Mackinnon,                        Chief Executive Officer                                        01823 662 241

Mark Warren,                            Group Finance Director                                      01823 662 241

Shaun Dobson/Jenny Wyllie     N+1 Singer                                                           0207 496 3000

Alan Bulmer                              Investor Focus International                                07831 654744

Chris Lawrance                        JBP Public Relations                                             0117 907 3400

Notes to Editors:

Swallowfield plc is a market leader in the development, formulation and supply of cosmetics, toiletries and related household products to the own label and branded sectors.  We pride ourselves on being a customer orientated, innovative, flexible and responsive company and combine high quality, competitive products with strong customer service - developing close partnerships with our customers and an in depth knowledge of their requirements.

 

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