Sales fell 6 per cent during the first half at household and personal goods maker McBride (MCB), or 11 per cent if you include a currency hit. Still, that was largely due to winding down contract manufacturing and ditching low-margin private label contracts. Sales of core growth products like dishwasher tablets and cleaners actually grew slightly and, with costs cut too, adjusted operating profit jumped 13 per cent to £11.6m.
Overall, private label revenue fell 2 per cent, but with 60 new products set to launch over the next few months, a return to growth in the second half looks likely. Despite economic woes and high unemployment, cost cutting and restructuring benefits pushed profit up 6 per cent in Western Europe to £7.2m. A weak retail environment in the UK, especially during December, was unhelpful, but profit still crept up 3 per cent to £7.1m. In the rest of the world, sales at constant currency soared over a fifth to £31.3m and profits doubled to £0.6m, with Central and Eastern Europe the powerhouse there. Admittedly, a hefty dividend cut will hurt shareholders this year, but money saved is funding investment in new products, and chief executive Chris Bull promises investors will "soon start to see the fruits" of the rebase.
Peel Hunt expects full-year adjusted pre-tax profit of £25m, giving adjusted EPS of 10.2p (2012: £22.5m/9.2p).
MCBRIDE (MCB) | ||||
---|---|---|---|---|
ORD PRICE: | 136p | MARKET VALUE: | £248m | |
TOUCH: | 134-136p | 12-MONTH HIGH: | 140p | LOW: 103p |
DIVIDEND YIELD: | 3.5% | PE RATIO: | 18 | |
NET ASSET VALUE: | 59p* | NET DEBT: | 71% |
Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2011 | 423 | -0.4 | -0.20 | 2.00 |
2012 | 378 | 5.9 | 2.40 | 1.70 |
% change | -11 | - | - | -15 |
Ex-div: 24 Apr Payment: 31 May *Includes intangible assets of £35.5m, or 19p a share |