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14 Jun 2010 12:01
Swallowfield plc
Trading Update
Typically, trade in the second half of the financial year is slow from January to April followed by a significant pick-up in May and June. Whilst this pattern has been repeated during the current year, for the reasons set out below, the pick up during May and June to date has not been to plan and consequently, trading will be below our previous expectations.
A number of committed orders due to be delivered by our June year end have been rescheduled by customers into July and August. In addition, a small number of short-term delivery issues arising from our component supply base have also led to delays. We expect these supply problems will soon be satisfactorily resolved.
Whilst sales for the full year to June are still expected to show growth on 2009, profits are likely to be approaching 2009 levels.
The high levels of orders booked for shipment during the July to September period, taken together with the high level of shipments expected in the last two weeks of June, will increase working capital levels and consequently year-end net debt. This increase will be well within the Group's current banking arrangements and is expected to be temporary.
The current order book stands at £16.9m, an increase of 35% over the same time last year. This situation is very encouraging as we go into the next financial year and gives us cause for cautious optimism for the future.
Whilst we remain cautious about the general economic background, with its likely impact on consumer confidence and input prices, our strategic plan remains the rapid growth and development of the business and our efforts to this effect are showing in the order book and additionally in the high level of new customer enquiries.
For further information please contact:
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Swallowfield plc |
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Ian Mackinnon |
Chief Executive Officer |
01823 662 241 |
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Mark Warren |
Group Finance Director |
01823 662 241 |
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Barrie Newton |
Smith & Williamson Corporate Finance |
0117 376 2213 |
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Nick Reeve |
Smith & Williamson Corporate Finance |
0117 376 2213 |
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Alan Bulmer |
Performance Communications |
0117 907 6514 |
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Chris Lawrence |
JBP Public Relations |
0117 907 3400 |
Notes to Editors:
Swallowfield plc is a market leader in the development, formulation and supply of cosmetics, toiletries and related household products to the own label and branded sectors. We pride ourselves on being a customer orientated, innovative, flexible and responsive company and combine high quality, competitive products with strong customer service - developing close partnerships with our customers and an in depth knowledge of their requirements.
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