Own brands drive full-year growth at Swallowfield

Personal care and beauty products company Swallowfield announced its final results for the 53 weeks ended 30 June on Tuesday, reporting adjusted profit before tax of £5.0m - a 37% improvement year-on-year.

The AIM-traded firm said its underlying operating profit was “broadly level” over last year at £5.5m, slipping slightly from £5.6m.

Adjusted earnings per share rose 31% year-on-year to 23.2p, with revenues for the 52 weeks sitting at £71.6m, or £73.9m on a statutory basis.

That was a decline of 3.6%, though the board did note that on a constant currency basis, the decline would have been less at about 3.0%.

The relative strength of sterling against the dollar compared to last year had reduced the reported top-line revenue, Swallowfield explained.

Brands represented 28% of revenues and 65% of underlying operational profits, the board reported.

It proposed a final dividend of 4.2p per share, up from 3.5p at the end of 2017, in addition to the interim dividend of 2.0p already paid.

That would give a full year dividend of 6.2p - an increase of 19%.

Net debt widened to £11.8m from £3.6m during the year, which was inclusive of £5.0m of acquisition-related payments and long-term incentive plan award payments.

“Swallowfield has delivered another year of continued progress against our strategic objectives with underlying profitability and earnings per share performing strongly,” said non-executive chairman Brendan Hynes.

“We continue to strengthen the fundamental capabilities of our business to deliver the innovation, quality and service demanded by our customers.

“This combined with the strong progress made on our owned brands, gives us confidence that our strategy is delivering a more diversified and sustainable business and we remain well positioned for the future.”

Chief executive Tim Perman added that, since taking over the role in July, he had been “impressed” by the demonstrated success of the group's stated strategy leading to a securing of underlying profitability.

“Looking ahead, I see a continuing emphasis on developing the owned brands portfolio, supported by a more profitable performance from the manufacturing business,” Perman said.