For the year to June 30 the group said pre-tax profit fell to £1m from £2.3m while turnover rose 26% to £54.7m.
Swallowfield noted that it had failed to find “quality labour” or to utilise its plant capacity to meet the rapid build-up in customer demand.
During the year £3.6m was spent on assets and working capital and debt rose from £4.9m to £8.8m.
The company is undertaking a strategic review of the business to be completed by the first quarter of next year.
Swallowfield added that the business would grow “solidly over the medium-term’ but recognise that these results have slowed the progress of our five year plan”.