Profits fall by £8.8m at cleaning products manufacturer

McBride

Profits have fallen by £8.8m at a manufacturer of cleaning and hygiene products.

Manchester based McBride said it is weathering tough trading conditions in its full year results.

Reported revenues increased by 4.6% to £721.3m over the last 12 months.

The Middleton based firm said it experienced a third year of significant direct cost and logistics inflation.

As a result adjusted operating profit fell by £8.8m to £28.9m.

Adjusted profits before tax fell from £33.2m to £24.5m.

The fall in profits comes 12 months after the firm issued a profits warning and announced a series of cost cutting proposals.

During the year the firm completed the sale of the European Personal Care Liquids business following the disposal of its skincare business in the Czech Republic the previous year.

The company also consolidated its aerosols operations to single site and closed its Hull site during fourth quarter.

Chris Smith, Interim Chief Executive Officer, said: “As previously announced, the past year has seen a shortfall in profit performance versus our core ambitions. The actions taken over the past three years have enabled the Group to improve its competitive advantage and market share in most product ranges, despite difficult trading conditions.

“Our teams have completed a number of key actions towards our strategic plan, including the integration of Danlind, the disposal of our loss-making Personal Care Liquids business and downsizing of Aerosol operations. This now allows us to focus on our core Household activities in Europe, together with realising our ambitions for our Asian business.

“The margin environment remains challenging and whilst we see certain input costs stabilising we will continue to be vigilant on overhead costs and continue to pursue growth opportunities in line with our strategic plans.

“The board’s expectations for the full year remain in line with our July trading update, with Household revenues expected to be flat for the 12 months to 30 June 2020 and earnings to be slightly below the year to 30 June 2019”

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