Own label cosmetics and toiletries manufacturer Swallowfield said it was disappointed not to have converted higher volume orders into full year profit.

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”.