Financial highlights
Revenue growth of 5.9%, with 'drive' and 'build' product categories growing by 9.0%.
Strong increase in contribution margin (31.3% vs 27.7% prior year), enabling good net profit growth whilst investing in brand support and organisational capability.
Profitability increased significantly with an adjusted operating profit of £0.64m (2015: £0.16m).
Net Debt of £4.9m (2015: £3.1m), a reduction from the 30 June 2015 position of £5.4m, after £0.9m of capital expenditure.
Interim dividend re-instated at 0.8 pence (2015: Nil).
Defined benefit pension scheme closed to future accrual, generating a one-off, exceptional gain of £0.55m.
Operational highlights
Good contribution from core business with new contracts and further business innovation.
Secured future supply agreements for innovative haircare products which will positively impact business in fiscal 2017.
Four Swallowfield owned brands now launched, in market and building steadily with new collaborations entered into.
Cost optimisation projects progressing as planned.
Brendan Hynes, Non-executive Chairman, commented:
"The first half year profitability is significantly ahead of last year and in line with our expectations as we continue to show measurable progress with our 'building a better Swallowfield' strategy.
This gives us confidence that we can continue to grow our business and build shareholder value in both the medium and long term."
