Cleaning products group confident as markets start to normalise
McBride, the Manchester-based household cleaning products firm, enjoyed a strong second half to its year, it revealed in unaudited results for the period to June 30.
And the business heralded a new strategy aimed at significantly boosting annual revenues over the next five years.
Overall annual revenues declined from £721.3m last year to £706.2m, and pre-tax profits of £11.2m compared with £22m in 2019.
The full year dividend was reduced from 3.3p per share to 1.1p per share.
However, chief executive Chris Smith said: “The group has delivered a solid FY20 performance overall.
“Following a tough first half year, demand for many of our cleaning products rose strongly as a result of COVID-19.
“I am very proud of the way the McBride team has responded to the numerous challenges and opportunities that have arisen from the pandemic and the improved second half financial performance.”
And he revealed: “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 €1bn 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.”
During the year the group achieved a strong profit performance in its last four months of the year driven by increased demand for cleaning, dishwash and aerosol products.
There was no significant production or business disruption from COVID-19, the business said.
It also revealed that a new Malaysian factory to support further growth should be operational from December 2020.
Looking ahead, McBride said trading conditions are starting to normalise as consumer behaviour returns to pre-COVID-19 patterns.
Volumes in laundry products have not recovered, although demand for other cleaning products continues to show some year-on-year growth.
It said it anticipates modest revenue growth in the coming year following contract gains which, combined with increased efficiency, should see a modest improvement in year-on-year profitability.
