McBride exceeds expectations

SHAMPOO-to-washing powder maker McBride said today that trading in the first four months of the year had exceeded expectations.

The group, which last September axed around 100 of its 700-strong workforce at sites in Manchester and Warrington, said revenues increased by 12% in the four months to April 29.

Revenue growth has been particularly strong in France and Italy, where the group has increased its private label market share.

In the UK tougher competition has meant revenues grew “modestly”. In the year to April sales increased by 13%, including 10% from currency movements.

McBride said it had won new contracts in the UK and continental Europe and it will continue to strip out costs through restructuring and a focus on operational efficiencies.

“Cash flow has been strong reflecting a continuing focus and tight control on working capital and capital expenditure,” said the statement. “As a result of this and reducing interest rates, financing costs have been lower than expected.”

In February the group said higher raw material costs and the squeeze on consumer spending had created a “difficult environment”. In the six months to December 31 pre-tax profit fell 55% to £5m, while revenue was up 14% to £392.2m.