‘Slow demand’ results in weaker sales for listed manufacturing firm

The listed manufacturer McBride has today announced a rise in revenues but weaker than expected trading.

The group, which makes and supplies Private Label products for the domestic household and professional cleaning and hygiene markets, also confirmed its Chief Executive Officer, Rik De Vos, will step down from its Board on 19 July 2019 and will leave the company on 31 August 2019.

The business, which has manufacturing sites in Middleton, Manchester and Barrow, sold its loss making liquids division in Bradford last year and closed its Hull site in the second half of the current financial year – with the loss of 117 jobs.

It has released a trading update for the twelve months ending 30 June 2019 and the current financial year.

It said its adjusted operating profit was expected to be in line with market expectations, while underlying full year revenues from continuing operations at constant currency were 2.7% higher than the previous year.

But McBride added: “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.

“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.”

Chris Smith, Chief Finance Officer, will act as Interim CEO from 22 July 2019 whilst the search for De Vos’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.

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