Swallowfield sees FY profits at top end of expectations

11th Jul 2016 15:46

(ShareCast News) - AIM-listed Swallowfield said full year profitability would be towards the upper end of expectations with overall revenues for the full year expected to show growth of 10% to approximately £54.4m.The personal grooming and beauty products company said revenues had been bolstered by the "strong performance of innovative new products introduced during the last financial year and our developing 'owned brands' portfolio"."This has also enabled us to show strong year-on-year growth in contribution margin, as well as to invest in commercial and technical resources to sustain future growth," the company said in a trading statement."Our balance sheet continued to strengthen with improved control of working capital leading to a net debt position of £4.3m as at 25 June 2016, which is ahead of expectations, and compares favourably to the prior year at £5.4m. This figure is after absorbing growth related investments in capital equipment and inventory to support our owned brands."Chief executive Chris How said the company was confident that it could deal with any macroeconomic uncertainty that may arise as a result of the UK's decision to leave the European Union."The growth momentum in our core business along with our owned brands portfolio (now including the brands from Brand Architekts) has given us a more balanced and resilient business model going forward."