Swallowfield shares dip on news of rising costs after H1 pre-tax profit

Shares in Swallowfield are down almost 3% on news of rising material and packaging costs as sterling weakened, despite the company improving its first-half pre-tax profit and revenue in a period it described as one of significant progress.

"The completion of the transformational acquisition of The Brand Architekts, combined with the strong performance of our Manufacturing business, means Swallowfield is well positioned for the future," said non-executive chairman Brendan Hynes.

"The first half year has seen further, significant progress made in re-positioning Swallowfield plc as a stronger, more profitable business with greater control over its own destiny."

Pre-tax profit was £2.0m, from £1.1m. Revenue was £39.7m, from £27.5m.

The specialist in the development, formulation, and supply of personal care and beauty products said that, in line with the industry, its business segments were being challenged by increasing material and packaging costs.

This was the result of the fall in sterling and global inflationary pressures.

"Whilst this does bring some uncertainty in the months ahead, we remain confident that our strong overall trading momentum will compensate in the current year."

Swallowfield added that it expected to see further sales and profitability growth for the full year, as planned.

At 10:36 GMT, shares in AIM-listed Swallowfield were down 2.86% to 340p each.