During the past year, McBride (MCB) sold its skincare business in the Czech Republic and, on 3 July 2018, it agreed to dispose of its lossmaking European Personal Care Liquids business for £12.5m. Thus, McBride’s 'continuing' figures – which ignore offloaded assets – actually paint a better picture of the ongoing investment case.
Continuing revenues rose 9 per cent to £690m, buoyed by a £48.4m, nine-month contribution from Danlind – a Danish auto-dishwash and laundry product supplier. But this acquisition also drove the escalation in net debt from £75.7m to £114m.
Segmentally, household enjoyed 11 per cent sales growth to £617m – with improved growth in the second half stemming from momentum in the UK and Germany, thanks to various contract wins. Still, there was some volume weakness in France against a difficult market backdrop. Overall, household’s adjusted operating margin declined from 8.8 to 7.5 per cent, after raw material, labour and transportation costs.
Meanwhile, excluding the aforementioned disposals, revenues for personal care and aerosols (PCA) fell 5.9 per cent to £72.7m. And the division swung to a £1.5m adjusted operating loss from a £1.3m profit, partly dampened by volume and raw material price challenges.
Investec forecasts adjusted pre-tax profit of £38.5m for the year to June 2019, with EPS of 14.9p (from £32.8m and 12.5p in FY2018).
| MCBRIDE (MCB) | ||||
| ORD PRICE: | 130.4p | MARKET VALUE: | £238m | |
| TOUCH: | 130.2-132p | 12-MONTH HIGH: | 233p | LOW: 109p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 69 | |
| NET ASSET VALUE: | 37p* | NET DEBT: | 169% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p)** |
| 2014 | 744 | -21.3 | -10.5 | 5.0 |
| 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 | 755 | 7.8 | 1.9 | 4.3 |
| % change | +7 | -59 | -61 | - |
| Ex-div: | 25 Oct | |||
| Payment: | 30 Nov | |||
*Includes intangible assets of £29.9m, or 16p a share **Payments are made by way of the issue of 'B' shares in place of income distributions. | ||||
