Swallowfield says full-year profitability will meet market expectations

8th Jul 2015 10:00

Swallowfield said it expects full-year profitability to be in line with market expectations, as its balance sheet continues to strengthen.The company, which develops and supplies personal care and beauty products, said revenues for the year ended 30 June 2015 are expected to show growth of 2.7% on a constant currency basis. Swallowfield said it has seen a slight softness in revenues versus expectations, due to the delayed availability of some materials and the continuing effect of the weak euro.It said the balance sheet continues to strengthen, with tight control of inventories and cash leading to a net debt position of £5.4m, net of the outflow of £1.2m on the acquisition of 'The Real Shaving Company' brand. Adjusted for this, net debt stands at £4.2m compared with £5.1m the previous year.Swallowfield said the integration of the newly-acquired brand has now been successfully completed ahead of schedule."We expect the challenging retail market conditions currently being experienced in the UK and Europe to persist in the medium term. However, the board remains confident that the new strategy outlined last year will continue to gain further momentum, improve profitability and build shareholder value. "In addition, this year we expect to benefit from further efficiencies, and improved run rate profitability, tighter control of working capital and new product developments already progressed in the 2014/15 financial year." At 10:34, shares were down 1.4% at 110p.