Private-label specialist McBride (MCB) suffered another torrid six months as stiff competition from branded rivals in the UK offset growth in Germany and Poland. The group is now relying on product launches in the second half to buck up the full-year numbers.
UK revenues fell by 11.5 per cent as private-label detergents were muscled aside by heavily discounted brands. Private-label goods accounted for 28.1 per cent of total market volumes over the period - down from 28.7 per cent the previous year. That cut McBride's adjusted operating profit from £6.9m to just £2.1m.
There was better news abroad. Profits leapt from £7.2m to £10.8m on the continent, as currency movements, cost-cutting and strong sales growth in Germany offset the ongoing decline of the Southern European markets. Trends were also largely positive further afield - the insolvency of a major customer in Vietnam notwithstanding. Sales were up 11 per cent and 4 per cent, respectively, in Australia and Malaysia, for example, boosting total revenues outside of Western Europe by 6.1 per cent to £33.2m.
Broker Investec Securities expects full-year pre-tax profits of £21m and EPS growth of 9.4 per cent to 8.6p for 2014.
| MCBRIDE (MCB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 102p | MARKET VALUE: | £186m | |
| TOUCH: | 101-102p | 12-MONTH HIGH: | 141p | LOW: 95p |
| DIVIDEND YIELD: | 4.9% | PE RATIO: | 41 | |
| NET ASSET VALUE: | 53p | NET DEBT: | 88% | |
| Half-yearto 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 378 | 5.7 | 2.3 | 1.7 |
| 2013 | 380 | 3.7 | 1.6 | 1.7 |
| % change | +1 | -35 | -30 | - |
Ex-div: 23 Apr Payment: 30 May* *Payment made by the way of the issue of B shares in place of income distribution | ||||
