Swallowfield Sees 2H Trading Well Below Company Views

14th Jun 2010 12:06

LONDON (Dow Jones)--Swallowfield PLC (SWL.LN), a supplier of cosmetics, toiletries and related household products, said Monday that the pick up in trading during May and June to date has not been to plan and consequently, trading in the fiscal second half will be below the company's previous expectations. MAIN FACTS: -A number of committed orders due to be delivered by June year end have been rescheduled by customers into July and August. -In addition, a small number of short-term delivery issues arising from component supply base have also led to delays. -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 GBP16.9 million, an increase of 35% over the same time last year. -Shares at 1105 GMT down 2.5 pence, or 2%, at 121.5 pence. -By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; [email protected] (END) Dow Jones Newswires June 14, 2010 07:06 ET (11:06 GMT)