Full service C&T provider Swallowfield has announced a new growth strategy focused on "further developing its specialist offer of quality and innovation".
The strategy will see Swallowfield building on its expertise and "existing competitive advantage" in aerosols, hot pours, hair styling, cosmetic pencils and fragrances. It comes as the company reports a return to profitability in the first half of its financial year. Swallowfield posted operating profit of £130,000, versus an operating loss of £550,000 in the same period last year.
Overall, revenues were broadly flat at £25.4m although an underlying sales growth of 8% was achieved excluding previously announced changes to the sourcing strategy of three clients. There was strong growth in direct exports, which now represent 35% of turnover. A number of customer wins with launches scheduled in the second half are likely to positively impact future performance. Swallowfield has reduced net debt to £4.6m from £5.5m and secured new banking facilities with HSBC.
Chris How, who was appointed Chief Executive in July last year, said: “We have a growth strategy to concentrate on the areas where we are particularly strong and have a proven track record. We are delighted that this refocus has already started to yield positive results. The strong action taken in re-aligning our cost base and gaining new business has helped us to create momentum in the business and given us a more solid platform from which to build.”