Swallowfield 2017 final results
Strong revenue growth of +36% (+8% excluding The Brand Architekts acquisition) to £74.3m (2016: £54.5m). Sterling weakness benefited the top-line with revenue growth on a constant currency basis of +31% and +2% respectively.
Owned brands now represent 24% of revenues.
Underlying operating profit increased by 180% year on year to £5.6m (2016: £2.0m).
Adjusted EPS increased by 40% year on year to 17.7 pence (2016: 12.6 pence).
Net Debt decreased to £3.6m (2016: £4.3m), inclusive of £2.0m additional term-loan funding to support The Brand Architekts acquisition.
Proposed final dividend of 3.5p per share (2016: 2.3p), in addition to the interim dividend of 1.7p already paid, to give a full year dividend of 5.2p (2016: 3.1p), an increase of 68%.
The Brand Architekts acquisition now successfully integrated, delivering strong year on year growth driven by several successful new product launches across all key customers.
Original Swallowfield brands also showing strong growth and extending retail distribution.
Manufacturing business performing robustly underpinned by successful launches for global brand owners and new contract wins.
Further improvements in % contribution margin achieved by growth of owned brands, drive category focus and cost base optimisation, despite raw material and components price increases.
Strong financial performance allowing investment in brand support and organisational capability whilst still delivering significantly improved profitability.
E-commerce now live across seven brands, supported by increasing digital marketing activity.
Brendan Hynes, Non-Executive Chairman commented:
"Swallowfield has delivered another very strong performance in the year with revenue, underlying profitability, EPS, and cash generation all showing significant improvements. We continue to make good progress against our clear strategic priorities and the completion of the transformational acquisition of The Brand Architekts during the year will ensure that Swallowfield continues to be well positioned for the future."