Trading Statement

RNS Number : 0294I

Swallowfield PLC

27 June 2013

 

Swallowfield plc

("Swallowfield" or the "Company")

Trading Update

Swallowfield plc, the leading cosmetics, toiletries and household goods group, announces the following pre close trading update for the 52 weeks ending 22 June 2013:

The industry continues to be affected by weak consumer demand particularly in UK and European markets. Additionally, Swallowfield is in the process of reducing its historical dependency on a few larger customers by securing new customers and launching new products, the exact timing of which is difficult to predict.

As a result of both of these factors, we now expect full year revenue to be marginally below current market forecasts for 2013, with some of this revenue shortfall moving into the new fiscal year.

We have already taken strong action to reduce costs, improve efficiencies and tightly control working capital. These actions have resulted in the business returning to profitability in the second half year, but this recovery in profitability will not be as strong as originally anticipated.  However, working capital will be below previous estimates and we anticipate that our net debt position at the end of the year will also be lower than previously advised.

Outlook

The cost savings and efficiency improvements that the Company has already implemented have come through in line with expectations in the second half and will deliver a positive full year impact in the next financial year. The outlook for fiscal 2014 therefore remains unchanged.

The full year results will be announced to the market on the 19^th September 2013.

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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