Trading Statement

Swallowfield PLC
03 April 2006



Swallowfield plc



We have been informed by Marks and Spencer (M&S), which has been a key customer
for over 30 years that, following a recent review of their colour cosmetics
sourcing, they have decided to place their entire colour cosmetics business to a
single alternative supplier. We have agreed with M&S that we will continue in
cosmetics production for them until the final quarter of this calendar year.
There should therefore be no impact on expected normal operating profits in the
current financial year. We will continue to supply M&S with aerosol and other
products.



In the 28 weeks to 7 January 2006 our colour cosmetics sales to M&S amounted to
approximately £2m representing approximately 7.1% of group turnover. We will
actively seek replacement business and management will provide an update in due
course.



M&S have agreed to work with us to effect an orderly transfer and this will
include paying us by early January 2007 for the entire stock that we currently
hold on their behalf which amounts to approximately £1.6m at our sales value.



This decision by M&S reinforces the unanimous view of the Directors that it is
in the best interests of the Company to transfer its listing to AIM. This will
enable the Company to respond promptly and cost effectively to changes in market
circumstances. An EGM has been convened for this purpose on 5 April 2006.




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