Brand Architek. Regulatory News (BAR)

3 Apr 2006 10:45

Swallowfield PLC03 April 2006 Swallowfield plc We have been informed by Marks and Spencer (M&S), which has been a key customerfor over 30 years that, following a recent review of their colour cosmeticssourcing, they have decided to place their entire colour cosmetics business to asingle alternative supplier. We have agreed with M&S that we will continue incosmetics production for them until the final quarter of this calendar year.There should therefore be no impact on expected normal operating profits in thecurrent financial year. We will continue to supply M&S with aerosol and otherproducts. In the 28 weeks to 7 January 2006 our colour cosmetics sales to M&S amounted toapproximately £2m representing approximately 7.1% of group turnover. We willactively seek replacement business and management will provide an update in duecourse. M&S have agreed to work with us to effect an orderly transfer and this willinclude paying us by early January 2007 for the entire stock that we currentlyhold on their behalf which amounts to approximately £1.6m at our sales value. This decision by M&S reinforces the unanimous view of the Directors that it isin the best interests of the Company to transfer its listing to AIM. This willenable the Company to respond promptly and cost effectively to changes in marketcircumstances. An EGM has been convened for this purpose on 5 April 2006. This information is provided by RNS The company news service from the London Stock Exchange