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Swallowfield PLC (BAR)

  Print          Annual reports

Tuesday 29 March, 2005

Swallowfield PLC

Trading Statement

Swallowfield PLC
29 March 2005

                                Swallowfield plc

Following the award of the significant outsourcing contract that we recently
referred to in the Company's interim results announced on 24th February,
Swallowfield is today providing a further strategic and trading update. We can
now confirm that this contract is for the filling of the total aerosol
requirements of PZ Cussons from July this year for an initial period of three
years. The contract is worth up to 12 million units per year and, against
current volumes, will account for upwards of 20% of the annual production
volumes of the Wellington site. Although not concluded as early in this year as
originally envisaged, the contract represents a major underpinning of forecast
volumes for the next 3 years.  This positive news, coupled with the increasing
success of component and gift pack purchases through the newly set up China
office, is providing a positive outlook for both volumes and profitability from
mid-year onwards.

The consumer market place has weakened since December and this, together with
the unusually large Christmas stock overhang at retailers consistently reported
by the media, has caused our customers to delay their current requirements and
created a short-term gap in our order books for the next 2 months. We now expect
average weekly business volumes in the second half of the year to be similar to
our first half.

We believe that the strong business position in toiletries and cosmetics that we
enjoy, places the company in a good situation at a time when there is
considerable market weakness and over capacity across the industry. Against such
a background, we are continuing to review possible acquisitions with a view to
further strengthening our position.

Notes to Editors:

Swallowfield formulates, manufactures and packages fine quality household goods,
toiletries and cosmetics across the whole spectrum of consumer markets for own
label and brand names.

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

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