8th Sep 2020 13:19
(Alliance News) - McBride PLC on Tuesday said profit halved in its most recent financial year thanks to costs and its exit from the aerosols business in the UK.
The Manchester-based domestic household and professional cleaning and hygiene products firm posted an GBP11.2 million pretax profit for its financial year ended June 30, around half its GBP22.0 million financial 2019 profit.
Revenue fell by 2.1% to GBP706.2 million from GBP721.3 million, primarily due to a 26% decline in Personal Care & Aerosols revenue to GBP35.2 million from GBP47.7 million after McBride's decision to exit UK Aerosol manufacture in the fourth quarter of its previous financial year.
Moreover, distribution costs increased to GBP57.3 million from GBP56.6 million and administrative costs rose to GBP168.3 million from GBP158.7 million.
McBride recommended a final dividend payment of 1.1 pence per share, having paid out 1.8p per share the year before. McBride had cancelled its interim dividend, so 1.1p is its full-year payout, down from 3.3p in financial 2019 and 4.3p in financial 2018.
Chief Executive Chris Smith said: "Today McBride is announcing the initial findings of a thorough business review and the initial phase of its new 'Compass' strategy that targets annual revenues of EUR1 billion over the next five years. From January 2021, we will establish separately managed divisions, each with their own focused strategies, and I am confident that the new McBride teams will deliver on our new ambitions."
This will involve restructuring its European Household business into three separately managed and accountable business divisions: Liquids, Unit Dosing, and Powders.
Shares in McBride were down 2.2% at 64.38p in London in midday trading on Tuesday.
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Mcbride