StockMarketWire.com - Personal care and beauty products supplier Swallowfield posted a 74% fall in annual profit owing to higher raw material costs.

Pre-tax profit for the six months through 12 January fell to £0.7m, compared to a profit of £2.8m on-year.

Revenue rose 3.7% to £41.4m, but manufacturing margins were significantly impacted by material cost inflation and a weaker product mix.

Swallowfield declared an interim dividend of 2.15p, up 7.2% on-year.

'This first half year has been impacted by significant material cost inflation, as previously signalled in the manufacturing segment of our business,' chairman Brendan Hynes said.

'Our brands business continues to perform well against very strong comparatives.'

'Actions have been taken to improve the margin performance of our manufacturing business in the second half of the year and beyond.'

'Swallowfield therefore remains well positioned to regain its positive growth momentum.'

Story provided by StockMarketWire.com