The challenges facing McBride (MCB) have been well flagged, which may explain why its shares rose on the release of the group’s full-year results announcement, despite the private-label goods manufacturer revealing that adjusted pre-tax profits were down by more than a quarter and net debt up 6 per cent.
The group, which is Europe's biggest maker of retailer own-brand household goods, has been beset by a combination of challenges: input costs have risen steadily over the past three years, while the trading environment has been difficult in the run-up to Brexit. Management has been taking action to manage overheads and has sold its lossmaking personal care liquids division. Interim chief executive Chris Smith cautiously said that the group has seen some raw material prices begin to stabilise.
All this is daunting enough for a group with a permanent top team in place, but both Mr Smith and finance director David Rattigan are serving on a temporary basis. However, Mr Smith said that while the group was not ready to say anything yet, it is “closing in” on an appointment.
Broker Investec is forecasting EPS of 9.1p in 2020, down from 10.1p in 2019.
| MCBRIDE (MCB) | ||||
| ORD PRICE: | 50.3p | MARKET VALUE: | £ 92m | |
| TOUCH: | 50.3-51.3p | 12-MONTH HIGH: | 155p | LOW: 50p |
| DIVIDEND YIELD: | 6.6% | PE RATIO: | 8 | |
| NET ASSET VALUE: | 35p* | NET DEBT: | 188% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p)** |
| 2015 | 704 | 2.6 | -0.4 | 3.6 |
| 2016 | 681 | 25.8 | 9.3 | 3.6 |
| 2017 | 705 | 19.2 | 4.9 | 4.3 |
| 2018 | 690 | 26.5 | 10.4 | 4.3 |
| 2019 | 721 | 22.0 | 6.5 | 3.3 |
| % change | +5 | -17 | -38 | -23 |
| Ex-div: | 24 Oct | |||
| Payment: | 30 Nov | |||
| *Includes intangible assets of £29.5m, or 16p a share **Payments are made by way of the issue of 'B' shares in place of income distributions | ||||
