McBride PLC Trading Update (1595F)

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RNS Number : 1595F

McBride PLC

11 July 2019

11 July 2019

McBride plc

Trading update

McBride plc (the "Group"), the leading European manufacturer and supplier of Contract Manufactured and Private Label products for the domestic Household and professional cleaning and hygiene markets, today provides a trading update for the twelve months ending 30 June 2019 and the current financial year.

Adjusted operating profit, adjusted PBT and adjusted EPS for the year ending 30 June 2019 are anticipated to be broadly in line with current market expectations.

Overall, underlying full year revenues from continuing operations at constant currency were 2.7% higher than the previous year.

Second half year trading, especially in the final quarter, was marginally weaker than expected. In Household (now including Asia), underlying second half growth at constant currency was 1.6% and full year growth ended at 3.7% year on year. Second half year revenues were 1.7% lower than the first half year, with the UK and France especially seeing weak sales activity. The East region continued to show good growth albeit at a lower rate than seen in the first half year.

Net Debt closed at circa GBP121m (30 June 2018: GBP114.3m). The Net Debt closing figure is higher than expected due to higher working capital, partly due to phasing, as well as a translation impact from weaker sterling.

The Group will announce its preliminary results for the year ended 30 June 2019 on 5 September 2019.

As the Group starts its new financial year, sales activity levels are weaker than expected. This is mostly due to slow demand levels across a number of markets in addition to the net effect of contract losses mostly attributable to the Group's pricing actions last year. As a result the Group now expects Household revenues to be flat for the 12 months to 30 June 2020 with Group earnings expected to be slightly below the year to 30 June 2019.

Directorate update

Further to the announcement of 2 May 2019, the Group advises that it has been agreed that Rik De Vos, CEO, will step down from the Board of McBride on 19 July 2019 and leave the Company on 31 August 2019.

The Board announces that Chris Smith, Chief Finance Officer, will act as Interim CEO from 22 July 2019 whilst the search for Rik's successor is completed and will revert to his current role once the new CEO is in place. During this interim period, David Rattigan, currently Group Financial Controller, will assume the role of Interim Director of Finance, responsible for the Group's finance function.

 
 For further information please contact: 
 
 McBride plc 
 Rik De Vos, Chief Executive Officer        0161 203 7570 
 Chris Smith, Chief Finance Officer         0161 203 7570 
 
 FTI Consulting                             020 3727 1017 
 Ed Bridges, Nick Hasell 
 

Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.

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July 11, 2019 02:00 ET (06:00 GMT)