Cleaning and detergent products manufacturer McBride (LON: MCB) is benefiting from consumers saving money and switching from brands to lower priced own brands. The fourth quarter was particularly strong and full year figures will be ahead of expectations. McBride is the best performing fully listed company today with a 19.8% increase to 31.15p.
Peel Hunt has upgraded its forecast from a loss of £2.8m to breakeven. The forecast had already been upgraded in April. The previous year’s underlying loss was £29.6m. Margins are expected to continue to improve.
There was 13% growth in volumes in the fourth quarter and the figure for the year to June 2023 was 5.4%. New contracts and higher demand from existing clients has boosted sales.
Net debt was £166.5m at the end of June 2023, which was also better than expected. Working capital was reduced. Debt should come down steadily. No dividends are likely in the short-term.
The full year results will be reported on 19 September. The 2023-24 pre-tax profit forecast has been upgraded from £9.5m to £12m. The shares are currently trading on less than seven times prospective 2023-24 earnings.
