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Swallowfield PLC (BAR)

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Friday 28 December, 2007

Swallowfield PLC

Sale and Leaseback

Swallowfield PLC
28 December 2007

                                Swallowfield plc
          Creating and Delivering Solutions for our Customers' Success

          Sale and Leaseback of Warehouse facility and Trading Update

Swallowfield plc is pleased to announce that it has unconditionally completed
the sale and leaseback of its Lowmoor warehouse facility. This will support the
Company's expansion programme both in the UK and overseas.

The main terms of the transaction are as follows:

•  Sale Price (net of fees)          £2.10m
•  Terms of lease                    20 year full repairing and insuring lease
•  Extension details                 20,000,sq ft extension by 30 September 2008

The net book value of the building is £0.85m and Swallowfield expects to make a
pre-tax profit on this transaction of £1.25m, which will be disclosed in the
interim accounts for the 28 weeks to 12 January 2008.  The Directors are advised
that there will be no tax to pay on this transaction.  The cash received will be
used to reduce net debt and support the Company's ongoing growth programme.

Trading update

In addition to the profit on the sale and leaseback transaction noted above, the
Company is pleased to report that pre-tax profits in the first half of the year
will be better than current market expectations. The overall net margin mix is
better than expected, operational efficiencies remain high and we continue to
manage costs and assets tightly.

We continue to believe that, with the exception of the profit on the sale and
leaseback, market expectations for the year to 30 June 2008 as a whole remain

Ian Mackinnon, Chief Executive Officer, commented:

'This transaction will significantly strengthen the Group's balance sheet,
further building on the debt reductions made over the last 18 months and put us
in a much stronger position to fund our future growth plans. In addition, as
part of the deal, the purchaser will extend the warehouse and this will enable
us to improve further the Group's inventory management and general operations,
as well as rationalise other property holdings.

Completing this sale and leaseback at a time of considerable uncertainty in the
commercial property sector reinforces the strong progress that the Company has
made over the last two years.'


Swallowfield plc.
Ian Mackinnon,             Chief Executive Officer               01823 662 241
Peter Houston,             Group Finance Director                01823 662 241

Mike Coe,                  Blue Oar Securities Plc               0117 933 0020
Alan Bulmer,               Performance Communications            0117 907 6514
Chris Lawrance,            Performance Communications            0117 907 3414

Creating and Delivering Solutions for our Customers' Success

Swallowfield plc is a full service provider for UK high street and global brands
operating in the cosmetic, personal care and household goods marketplace.  The
Company's services cover market analysis; design, formulation manufacturing and
testing of products; packaging design and sourcing; and distribution and stock

                      This information is provided by RNS
            The company news service from the London Stock Exchange                          

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