Brand Architek. Regulatory News (BAR)

11 Jul 2005 07:00

Swallowfield PLC11 July 2005 Swallowfield plc Trading Update 10 July 2005 Swallowfield today announces that full year sales for the year to 30 June 2006,are likely to be around 3% below current market expectations and this will havea consequent negative impact on results for the year ended 30 June 2005. Our last trading update on 20 April 2005 stated that the prevailing weak retailsales environment would considerably impact our results for the year ended 30June 2005,but as a result of confirmed new business, we anticipated that oursales would improve in June and July. Whilst this has broadly been the case,sales did not pick-up as quickly as expected. We retained our operating gearinglevels in anticipation of these higher activity levels and have accepted theconsequent misalignment in costs in the short term. Significantly, despite recognising the ongoing weak market, we have not changedour outlook for the current financial year ending on 30 June 2006, nor ourlong-term strategic aims and remain optimistic for the future. This optimism isunderpinned by new contracts, new enquiries and the fact that our order bookgoing into this new financial year is well above that of the same time lastyear. Full year results will be published in early September. 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