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Swallowfield PLC (BAR)

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Thursday 06 April, 2000

Swallowfield PLC

Final Results - Year Ended 31 December 1999

Swallowfield PLC
6 April 2000



                            SWALLOWFIELD PLC                            

Chairman's Statement


The Group's results for the year show a profit before taxation of £1,327,000
(1998: loss of £2,755,000) and a profit attributable to shareholders of
£935,000 (1998: loss of £3,086,000).

Overall 1999 was a year of positive progress, during which we achieved our
major objectives of restructuring the operational side of the business,
creating a stable business platform on which to move forward and starting to
restore profitability to appropriate levels.

Operating profit was £1,776,000 which met expectations and was an improvement
of 60% over the prior year number of £1,113,000. This was despite a 22%
reduction in turnover resulting from a decline in European sales from our
Brussels operation and a small number of major customers whose strategic
decisions adversely impacted their own and our sales.

Good cash management during the year allowed us to close the Brussels factory
without the need to draw-down the £1.5 million loan facility made available to
us for this purpose by our bankers. The improving financial position of the
Group has enabled us to re-negotiate our banking facilities since the
year-end. Having chosen to remain with National Westminster Bank plc we now
have long term committed loan facilities in place which will significantly
strengthen our balance sheet in 2000 and beyond.  Net debt for the year ended
31 December 1999 was £5,226,000.  

The run-down and closure of the Brussels factory proceeded smoothly and on
budget, the majority of production having ceased by the end of April 1999 with
the plant finally closing in June 1999.  A larger than expected proportion of
our Continental European customers was retained, although order levels remain
cautious whilst confidence in our Bideford facility develops.  

We continue to build our customer base and broaden our product portfolio. We
were particularly successful in 1999 in widening the market for foaming shower
gels - more than 5 million were exported to the USA and Europe - and providing
gift sets of both cosmetics and toiletries for a number of major retailers in
UK high streets.

We continued to develop and strengthen the Board since the last annual report
with succession to a new generation of executive management. Ian Mackinnon
succeeded Stephen Daykin on 4 January 2000 as Group Finance Director, having
joined us from Invensys plc where he held a senior operational finance role. 
Stephen has remained in a non-executive capacity since his resignation from
his executive role to help provide us with continuity and stability.

We have been fortunate to recruit Brian Williamson who joined us on 25 January
2000 as Group Manufacturing Director. His most recent experience as Managing
Director of the European Aerosols business of CarnaudMetalbox is immediately
relevant to our business.

As announced on 24 January 2000, after 28 years exceptional service, Tony
Dowsett left the group on 1 February 2000. We thank him for his major
contribution to the growth and development of Swallowfield plc.

We can now look forward to a period of stability and focus on the future with
our executive management team.

In October I agreed to take over the Chairmanship from Bill Otley on an
interim basis.  After 12 years with the Group, we would like to thank Bill on
behalf of the Board and shareholders for his contribution, support and advice.

We have conducted a wide ranging professional search for a permanent successor
over the last few months and I am confident that we will be announcing a new
Chairman at the Annual General Meeting at which time I intend to step down to
non-executive Director once more.

Given the healthy improvement in our financial position, the positive start to
the new financial year and our confidence in the future, the Board is pleased
to recommend a final dividend of 2.0p per share making a total dividend of
3.0p per share for the year.  This will be paid on 23 June 2000 to
shareholders on the register on 26 May 2000.

R T Organ
Chairman


GROUP PROFIT AND LOSS ACCOUNT
for the year ended 31 December 1999
                                                       1999          1998
                                                      £'000         £'000

Turnover                                             36,573        46,643
Cost of sales                                       (27,466)      (34,353)
                                                     ------        ------
Gross profit                                          9,107        12,290
Net operating expenses                               (7,331)      (11,177)
                                                     ------        ------
Operating profit                                      1,776         1,113
Fundamental restructuring costs                           -        (3,302)
                                                     ------        ------
Profit/(loss) on ordinary activities
before interest and taxation                          1,776        (2,189)
Interest receivable                                       9            14
Interest payable                                       (458)         (580)
                                                     ------        ------
Profit/(loss) on ordinary activities
before taxation                                       1,327        (2,755)

Tax on profit on ordinary activities                   (392)         (331)
                                                     ------        ------
Profit/(loss) attributable to shareholders              935        (3,086)
Dividends                                              (338)         (248)
                                                     ------        ------
Transferred to/(from) reserves                          597        (3,334)
                                                     ------        ------
Earnings per share:
Basic                                                   8.3p        (27.4)p
Diluted                                                 8.3p        (27.4)p


GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 
for the year ended 31 December 1999
                                                       1999          1998
                                                      £'000         £'000

Profit/(loss) for financial year                        935        (3,086)
Translation gain on overseas investment                   4           123
                                                      -----         -----
Total recognised gains and (losses) 
relating to the year                                    939        (2,963)
                                                      =====         =====

GROUP BALANCE SHEET
as at 31 December 1999

                                                       1999          1998
                                                      £'000         £'000

Fixed assets
Tangible assets                                      11,587        12,474

Current assets
Stocks                                                5,231         5,461
Debtors                                               6,286         5,236
Cash at bank and in hand                              1,282         2,492
                                                     ------        ------
                                                     12,799        13,189

Creditors: amounts falling due within 
one year                                            (13,270)      (11,653)
                                                     ------        ------
Net current (liabilities)/assets                       (471)        1,536
                                                     ------        ------
Total assets less current liabilities                11,116        14,010

Creditors: amounts falling due after 
more than one year                                   (1,123)       (2,761)

Provisions for liabilities and charges                 (417)       (2,274)
                                                     ------        ------
                                                      9,576         8,975
                                                     ======        ======

Capital and Reserves:
Called up share capital                                 563           563
Share premium                                         3,796         3,796
Revaluation reserve                                     191           209
Profit and loss account                               5,026         4,407
                                                     ------        ------
Equity shareholders' funds                            9,576         8,975
                                                     ======        ======


GROUP STATEMENT OF CASH FLOWS
for the year ended 31 December 1999
                                                       1999          1998
                                                      £'000         £'000

Net cash inflow from operating 
activities                                              793         6,080

Returns on investments and servicing 
of finance                   
Interest received                                         9            14
Interest paid                                          (374)         (497)
Interest element of finance lease rentals               (84)          (83)
                                                     ------        ------
                                                       (449)         (566)
                                                     ------        ------
Corporation tax paid                                   (242)       (1,281)

Capital expenditure
Purchase of tangible fixed assets                      (551)       (2,924)
Sale of tangible fixed assets                            28            94
                                                     ------        ------
                                                       (523)       (2,830)
                                                     ------        ------
Equity dividends paid                                  (113)         (778)
                                                     ------        ------
Net cash (outflow)/inflow before financing             (534)          625

Financing
New loans                                             5,175         2,479
Repayment of loans                                   (5,585)         (764)
Capital element of finance lease rentals               (297)         (169)
                                                     ------        ------
                                                       (707)        1,546
                                                     ------        ------
(Decrease)/increase in cash                          (1,241)        2,171
                                                     ------        ------

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                                       1999          1998
                                                      £'000         £'000

(Decrease)/increase in cash                          (1,241)        2,171
                                                     
Cash outflow/(inflow) from changes in 
debt and lease financing                                707        (1,546)
                                                     ------        ------
Change in net debt resulting from cash flows           (534)          625

New finance leases                                     (118)         (542)
Translation difference                                   52           (72)
                                                     ------        ------
Movement in net debt in the year                       (600)           11
Net debt at 1 January                                (4,626)       (4,637)
                                                     ------        ------
Net debt at 31 December                              (5,226)       (4,626)
                                                     ------        ------

Notes:

1. Turnover and Segmental Analysis


                                     1999                        1998
                                   Profit                      Profit
                                   before      Net             before     Net
                         Turnover     tax   assets   Turnover     tax  assets
                            £'000   £'000    £'000      £'000   £'000   £'000
Class of Business
Aerosol products           22,132   2,048    9,326     26,553   2,689   9,686 
Cosmetic products          14,441    (272)   7,030     20,090  (1,576)  6,730
                           ------  ------   ------     ------  ------  ------
                           36,573           16,356     46,643          16,416
                           ------           ------     ------          ------
Operating profit                    1,776                       1,113

Fundamental restructuring
costs                                   -                      (3,302)
Net interest payable                 (449)                       (566)
                           ------  ------   ------     ------  ------  ------
Profit/(loss) before tax            1,327                      (2,755)
                           ------  ------   ------     ------  ------  ------
Unallocated net liabilities                 (6,780)                    (7,441)
                           ------  ------   ------     ------  ------  ------
Group net assets                             9,576                      8,975
                           ------  ------   ------     ------  ------  ------
Geographic Segment
By Source:
UK                         34,563   2,036   15,835     39,397   1,943  16,326
Continental Europe          2,010    (260)     521      7,246    (830)     90 
                           ------  ------   ------     ------  ------  ------
                           36,573   1,776   16,356     46,643   1,113  16,416
                           ------  ------   ------     ------  ------  ------
By Destination:
UK                         29,094                      32,130  
Continental Europe          6,442                      11,404
North America                 703                       2,492
Far East                        -                         448
Other                         334                         169
                           ------  ------   ------     ------  ------  ------
                           36,573                      46,643
                           ------  ------   ------     ------  ------  ------

Unallocated net liabilities comprise bank loans, finance leases, proposed
dividend and certain other holding company assets.  Net assets within
Continental Europe include the restructuring provisions relating to the
closure of the Brussels factory.


2.  Earnings Per Share

The calculation of basic earnings per share is based on 11,256,416 ordinary
shares, being the weighted average number of ordinary shares in issue during
the year, and the profit on ordinary activities after taxation of £935,000
(1998: £3,086,000 loss).  Shares held by the Deferred Share Plan Trust have
been treated as cancelled. 

3.  Statutory Accounts

The financial information does not constitute statutory accounts as defined in
section 240 of the Companies Act 1985, but has been extracted from the
statutory accounts for the financial year ended 31 December 1999, on which an
unqualified audit report has been issued and which will be delivered to the
Registrar following their adoption at the Annual General Meeting.  The
statutory accounts for the financial year ended 31 December 1998 have been
delivered to the Registrar of Companies with an unqualified audit report
thereon.

4.  Annual Report and AGM

The Annual General Meeting will be held on Friday 12 May 2000 at the Castle
Hotel, Taunton, starting at 12.00 noon.

                                                                                                                                                                                                                                              

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