Brand Architek. Regulatory News (BAR)

20 Apr 2005 09:24

Swallowfield PLC20 April 2005 Swallowfield plc Trading update In the last two weeks we have experienced an unexpected and significant numberof cancellations and reductions in call-offs from major customers. This isconsistent with the very recent trading updates from a number of major highstreet retailers and the increasing acknowledgement of a general weakness inconsumer confidence and spending. This short-term situation is now expected to continue throughout April and May,whilst June and July onwards continues to look busy. In order to ensure that wecan meet our longer-term commitments, we have maintained our manufacturingworkforce in readiness and have shouldered the short-term cost. We expect thecombination of these factors to have a considerable impact on our full yearresults. We believe that the current situation does not materially alter our policies orlong-term strategic aims. The strong business position we enjoy in toiletriesand cosmetics is underpinned by the 3-year contract with PZ Cussons UK that weconfirmed on 29 March. Against this background, we are continuing to reviewpossible acquisitions with a view to increasing market share in our corebusiness. Notes to editors: Swallowfield formulates, manufactures and packages fine quality household goods,toiletries and cosmetics across the whole spectrum of consumer markets for ownlabel and brand names. This information is provided by RNS The company news service from the London Stock Exchange