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Comment: McBride cleans up
John Marshall
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Upbeat full-year statement augurs well for the future
Household goods group McBrides interim results were very encouraging. Sales were usefully ahead while pre-tax profits were up by 44%.
Net debt was down by £18.3m to £76.6m. Earnings were up 42% at 4.7p and the interim dividend was increased by 14%. The groups rose 3.7% to 70p on release of the figures.
The group specialises in own label detergents. Although there is little growth in the UK there is substantial growth in Continental markets. Sales on the Continent grew by just over 7% in the first half and these are.
Continental sales are marginally greater than sales in the UK. The group believes that it should be able to reduce debt by a further £20m over the next 18 months. It will then either increase the dividend significantly or do a share buyback.
In the longer term the commitment to Central and Eastern Europe could be interesting. As Western retailers are now dominating these markets the company is in a strong position to grow sales.
Trading has improved during each of the past four half years and the group is confident about its prospects going forward.
There will only be few analysts at the results meeting as the results coincide with Unilever's. However we believe that the company's optimism could be infectious.
The writer holds shares in this company.
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