The consumer products player saw a full year pre-tax loss of £1.2m
Tough numbers from Swallowfield. The consumer products player saw a full year pre-tax loss of £1.2m compared to £1.6m in profits from the year before.
Revenues also took a sharp hit, down to £48.6m compared with almost £58m a year ago – a -16% drop. In defence of the company, CEO Chris How claimed 21% sales growth from its client base, which should “positively improve profitability in the medium and longer term”. How also promises a rash of cost cutting measures.
However, in the previous year, Swallowfield’s top three customers accounted for 52% of revenues, with the largest customer taking 25%. “This year,” the company said, “the same three customers account for 32% of revenue, a reduction in revenue of £15m, with the largest customer now 15%.” Broker N+1 Singer has subsequently slashed Swallowfield’s 2014 pre-tax profit forecast to £0.5m from £1.25m, which should see earnings per share of 3.3p climbing – if all goes well – to 8.6p by 2015.
Recently Swallowfield shares were worth 81.1p, some distance from the 123p high seen towards the end of 2012, a slump of 30%. Swallowfield has had a turbulent two years, with the eviction of ex chairperson Shena Winning and, in the spring this year, the ousting of former boss Ian Mackinnon after 13 years in the top chair. The UK contract manufacturer appointed How as CEO of the company in July. Prior to joining Swallowfield, How held a number of senior management roles at PZ Cussons and Colgate Palmolive. Most recently, he was Managing Director of PZ Cussons Australia.