Swallowfield surges after reinstating dividend

LONDON (ShareCast) - (ShareCast News) - Cosmetic manufacturer Swallowfield (LSE: SWL.L - news) reported an increase in annual sales and pre-tax profits, leading it to reinstate a final dividend. In the 12 months to 30 June, the group saw sales increase 0.6% year-on-year to £49.4m, while revenues rose 2.6% on a constant currency basis.

Profit before tax and exceptional items jumped 62% year-on-year to £810,000, boosted by the £1.15m acquisition of The Real Shaving Company, which the group completed in May this year.

In a statement released on Tuesday, Swallofield added it had secured "two significant contracts with major global brand owners" that it said would contribute to further growth.

"I am delighted to report that we have delivered a significant increase in profitability and are reinstating a proposed final dividend," said non-executive chairman Brendan Hynes.

"We are also pleased with progress made to date on a number of significant milestones for the business, including new product launches and innovative new owned brands." The group announced a reinstatement of a final dividend at a proposed 2p per share.

Swallowfield shares were up 9.59% to 120.00p at 1001 BST on Tuesday.