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Swallowfield PLC (BAR)

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Friday 11 January, 2008

Swallowfield PLC

New Cosmetics Operation

Swallowfield PLC
11 January 2008


            Swallowfield's new cosmetics operation in Czech Republic


Swallowfield plc, the £45m turnover cosmetics, toiletries and household goods
solutions provider that is listed on AIM, has formally opened its new operation
in Tabor in the Czech Republic.

The production facility, which is designed to provide Swallowfield with
significant cost efficiencies, will fill, finish and package colour cosmetics,
fragrances and other liquid products the company produces for its clients, which
include global brands and high street retailers. The 5,000 sq metre facility
will also undertake gift packaging of toiletry and cosmetic products.

Ian Mackinnon, Chief Executive of Swallowfield, said: 'In the last 12 months we
have made great strides, with operating profit up 122% to £1.32m for the year
ended 30 June 2007.  Our new facility in the Czech Republic is part of our
ongoing strategy to increase revenues and reduce our cost base. Whilst there
will be an increase in freight costs associated with moving an operation
overseas, the labour costs are approximately a third of those in the UK for the
type of work that will be undertaken in our new operation, thereby providing a
significant net saving.

We believe this to be one of the biggest operations of its kind in Europe and as
the facility is operated by us, rather than outsourced to a strategic partner,
we feel that this gives us a major competitive edge in the marketplace.  We have
already received a lot of interest in our new production facility from major
global players in the cosmetics and toiletries industry.'

The production plant in the Czech Republic forms part of Swallowfield's global
expansion programme, which also includes the development of a joint venture
operation in China, which will be unveiled early in the New Year. The opening
of the Tabor facility comes on the back of Swallowfield's announcement that it
has unconditionally completed the sale and leaseback of its Lowmoor warehouse
facility, which will support the company's expansion programme both in the UK
and overseas. The company expects to make a pre-tax profit on this transaction
of £1.25m.

The factory in Tabor will employ some 100 production staff when fully
operational and will share the same quality systems that are operated in
Swallowfield's two plants at Wellington, Somerset and Bideford, Devon.



NOTES TO EDITOR

Swallowfield is today a full service provider for brands operating in the
cosmetic, personal care and household goods marketplace. This includes market
analysis; design, formulation and testing of products; packaging design and
sourcing; and distribution and stock management.



For further press information, please contact:

Chris Lawrance, Performance Communications,
tel: 0117 9073414; mobile: 0774 7693905

Alan Bulmer, Performance Communications,
tel: 0117 9076514; mobile: 07831 654744

Ian Mackinnon, Swallowfield plc,
tel: 01823 652219; mobile 07713 501867

Mike Coe, Blue Oar Securities Plc,
tel: 0117 933 0020




                      This information is provided by RNS
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