Brand Architek. Regulatory News (BAR)

11 Jan 2008 07:01

Swallowfield PLC11 January 2008 Swallowfield's new cosmetics operation in Czech Republic Swallowfield plc, the £45m turnover cosmetics, toiletries and household goodssolutions provider that is listed on AIM, has formally opened its new operationin Tabor in the Czech Republic. The production facility, which is designed to provide Swallowfield withsignificant cost efficiencies, will fill, finish and package colour cosmetics,fragrances and other liquid products the company produces for its clients, whichinclude global brands and high street retailers. The 5,000 sq metre facilitywill also undertake gift packaging of toiletry and cosmetic products. Ian Mackinnon, Chief Executive of Swallowfield, said: "In the last 12 months wehave made great strides, with operating profit up 122% to £1.32m for the yearended 30 June 2007. Our new facility in the Czech Republic is part of ourongoing strategy to increase revenues and reduce our cost base. Whilst therewill be an increase in freight costs associated with moving an operationoverseas, the labour costs are approximately a third of those in the UK for thetype of work that will be undertaken in our new operation, thereby providing asignificant net saving. We believe this to be one of the biggest operations of its kind in Europe and asthe facility is operated by us, rather than outsourced to a strategic partner,we feel that this gives us a major competitive edge in the marketplace. We havealready received a lot of interest in our new production facility from majorglobal players in the cosmetics and toiletries industry." The production plant in the Czech Republic forms part of Swallowfield's globalexpansion programme, which also includes the development of a joint ventureoperation in China, which will be unveiled early in the New Year. The openingof the Tabor facility comes on the back of Swallowfield's announcement that ithas unconditionally completed the sale and leaseback of its Lowmoor warehousefacility, which will support the company's expansion programme both in the UKand overseas. The company expects to make a pre-tax profit on this transactionof £1.25m. The factory in Tabor will employ some 100 production staff when fullyoperational and will share the same quality systems that are operated inSwallowfield's two plants at Wellington, Somerset and Bideford, Devon. NOTES TO EDITOR Swallowfield is today a full service provider for brands operating in thecosmetic, personal care and household goods marketplace. This includes marketanalysis; design, formulation and testing of products; packaging design andsourcing; and distribution and stock management. For further press information, please contact: Chris Lawrance, Performance Communications,tel: 0117 9073414; mobile: 0774 7693905 Alan Bulmer, Performance Communications,tel: 0117 9076514; mobile: 07831 654744 Ian Mackinnon, Swallowfield plc,tel: 01823 652219; mobile 07713 501867 Mike Coe, Blue Oar Securities Plc,tel: 0117 933 0020 This information is provided by RNS The company news service from the London Stock Exchange