8th Jul 2015 08:27
LONDON (Alliance News) - Swallowfield PLC Wednesday said it expects profitability for its full financial year to be in line with market expectations as revenue grew slightly and it continues to work to reduce its net debt.
In a trading update, the personal care and beauty products supplier said that overall revenue for the year ended June 30 is expected to show growth of 0.8% versus the year before, or 2.7% on a constant currency basis. It said it has seen a slight softness in revenue due to the delayed availability of some materials and the weak euro.
Swallowfield said that its balance sheet continues to strengthen with tight control of inventories and cash leading to a net debt position of GBP5.4 million, although this is higher than the GBP5.1 million reported the year before as it recently bought The Real Shaving Co brand for GBP1.2 million.
Swallowfield said that the integration of The Real Shaving Co into the business has been completed ahead of schedule and has received a positive customer response.
It added that development of its own Swallowfield brands continues to progress well, with the first orders of its Bagsy beauty-product brand recently shipped out and an extension to the distribution of its Tru value brand. Its new male haircare brand has been positively received by major retailers and will be launched in the autumn, Swallowfield said.
"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," the company said in a statement. "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."
Shares in Swallowfield were trading down 1.4% at 110.00 pence Wednesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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