Hygiene group expects 10% improvement on pre-tax profits
Manchester hygiene group McBride has updated its trading update from last week.
The maker and supplier of contract manufactured and private label products for the domestic household and professional cleaning/hygiene markets, said it now believes its profits before tax will be better than previously indicated.
It said: “Our recent AGM statement indicated that our full year earnings were expected to be weighted to the first half of the year, partly reflecting weak comparatives in the prior period.”
In 2019, the group experienced a weak November and December trading period. But it said this year, these months are now expected to trade very favourably ahead of last year with the result that the board now expects first half sales growth of approximately two per cent.
This improved revenue performance, combined with continued factory efficiencies, limited operational impact from COVID-19, lower than expected operating costs and input costs for certain raw material and packaging items, will see a material year-on-year improvement in first half earnings.
Today’s statement said: “Consequently, the board’s current outlook for the year ending 30 June 2021, is that profit before tax is expected to be at least 10% ahead of the current market consensus of £25.2m, albeit the board remains mindful of the continued economic uncertainty created by Brexit and COVID-19, together with expected increases in certain input costs in the second half.”
The group said its next scheduled update will be its half year results on February 23, 2021, and will be followed by a separate presentation providing an update on Programme Compass, McBride’s new strategic initiative, along with details on its new product-led divisional strategies.
