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Swallowfield PLC (BAR)

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Tuesday 20 December, 2005

Swallowfield PLC

Trading Statement

Swallowfield PLC
20 December 2005


                                 Swallowfield plc



Trading update and move to AIM



Swallowfield, the specialist manufacturer of a wide range of household goods,
cosmetics and toiletry products, announces that half-year and full year profits
are likely to fall significantly below current market expectations.  The Board
anticipates that the Group will report a loss for the first half of the year and
be breakeven, before the restructuring costs discussed below, for the year as a
whole.  The second half of the year is expected to see improved trading and will
benefit from the actions being taken.



The business background has continued to deteriorate, particularly in the light
of the increasingly weak retail environment.  Competitive pressures have limited
our ability to pass on the increased costs that industry is currently
experiencing.  Additionally, we have incurred £0.1m of non-recurring costs
associated with an aborted acquisition, and we anticipate an annual, non-cash
cost of £0.15m arising from the effect of compliance with International
Accounting Standards.



In the light of these reduced expectations the Board considers that it would be
prudent to support the balance sheet at this time and has therefore decided not
to declare an interim dividend.



The Company will shortly finalise a comprehensive reorganisation and
rationalisation programme across the entire business.  This will encompass
pricing, products and their attendant profitability, procurement, production and
the overall management structure.  This will lead to a leaner and more focussed
company and is expected to generate annual savings of £0.6m in the medium term
and will incur a restructuring charge during the current year of approximately
£0.5m.



In view of the size of the Company, the Board has decided that it would be
appropriate to transfer the listing of the Company's shares to AIM.



Further announcements on these subjects will follow in due course.



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



Enquiries:



Tony Wardell, Group Managing Director, Swallowfield plc, 01823 662241



Barrie Newton, Rowan Dartington & Co., 0117 9330011


                      This information is provided by RNS
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