17th Jan 2025 09:16
(Alliance News) - McBride PLC on Friday said it plans to reinstate annual dividends in response to strong trading and new long-term financing facilities.
The announcement gave a boost to shares in the Manchester, England-based private label products maker for the domestic household and professional cleaning and hygiene markets. They leapt 15% to 117.00 pence each in London on Friday morning.
McBride estimates that adjusted operating profit in the six months that ended December 31 was up 8% from a year prior, on a constant currency basis.
Full year adjusted operating profit is expected to be in line with internal expectations, the company added. In the the financial year that ended June 30, 2024, McBride reported adjusted operating profit of GBP67.1 million.
Group revenue in the financial first half was 2.9% higher than the prior-year period on a constant currency basis, with volumes up 5.9%.
Private label volumes grew by 2.4% and contract manufacturing volumes increased by 69.0%, driven mostly by the successful launch of two new multi-year contracts with large 'fast moving consumer goods' clients over the past six months.
McBride highlighted "good progress" on debt management.
Net debt at December 31 was GBP117.6 million, pared down from GBP131.5 million at June 30.
In November, McBride completed a refinancing of its banking facilities. The new financing consists of a EUR200 million revolving credit facility with four-year maturity. There is an option to extend this by up to two years.
This has allowed the "normalisation" of the group's capital allocation options, McBride said.
As a result of this and the strong trading performance, McBride said it intends to re-instate annual dividends in the current financial year.
Details will be announced at the time of the final results in September. Interim results for the six months ended December 31 will be announced on February 25.
By Jeremy Cutler, Alliance News reporter
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