Cost controls boost Swallowfield profits

Swallowfield, the supplier of cosmetics, toiletries and household goods to various brands and retailers, pointed to tight cost controls as it posted a rise in profits for the year to 30 June.Pre-tax profits climbed to £1.33m from £1.18m on revenues that rose to £57.5m from £52.4m. The full-year dividend stays at 6.3p."Revenue has increased by 9.5% despite the continued strong economic headwinds and is now 28% higher than in 2008, the start of the financial crisis," chief executive Ian Mackinnon said. "We have driven this increase through product innovation, an attention to quality and customer service and by providing cost effective product solutions to our growing customer base. Tight control of total overhead costs together with this increased revenue has more than offset significant increases in the price of raw materials and components."Swallowfield manufactures aerosols and toiletries in Wellington, Somerset and colour cosmetics in Bideford, Devon. It fills, packages and assembles products across the toiletry and cosmetics range at Tabor in Czech Republic.Mackinnon said he expects the UK market to remain "adverse for another couple of years" and that the company is responding by looking to expand the business outside the UK, while taking advantage of the more favourable manufacturing climate in the UK.Revenues in the first 10 weeks of the new financial year have been in line with expectations.