LONDON (Alliance News) - Beauty products company Swallowfield PLC Thursday said it expects to return to full-year profitability in line with market expectations, following a year of stabilisation.
The cosmetic and household goods supplier has been beset by a number of problems in recent times including contract losses. As a result the company waived its interim dividend for the 28 weeks ended January 4.
Swallowfield said full-year revenue ended June 30 is expected to show growth of 3% compared with the previous year, taking into account GBP2 million of sales lost due to previously advised changes in sourcing strategy from a small number of major customers.
The company said it has made progress across its four strategic areas: product category focus, cost base optimisation, new product development and emerging new category.
Looking ahead, Swallowfield said it expects the challenging retail market conditions currently being experienced in the UK and Europe to continue in the short term and medium term.
However, it said the new financial year ending June 2015 will benefit from improved "run rate profitability, further efficiencies, tighter control of working capital and new product developments".
The company will publish its full-year results on September 18.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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