City round-up: McBride; Victorian Plumbing

Full year profit expectations have been significantly raised at McBride, the Manchester-based cleaning products manufacturer, after strong interim results that saw a £37.4m turnround in half year pre-tax profit levels.

The group said its strong six month performance has led to a 10-15% uplift in full year adjusted operating profit forecasts.

In the six months to December 31, 2023, the group grew revenues from £426.3m at the same point last year, to £468m, while a pre-tax loss of £20m was transformed into a £17.4m pre-tax profit.

Net debt dropped by £23.7m to £145.7m.

McBride said the ongoing consumer and retailer shift to high quality private label products supported further growth across the group as all of its five divisions – liquids, unit dosing, powders, aerosols and Asia Pacific – delivered profitable performances.

The group reported that demand levels in the early months of 2024 are in line with the first half, while favourable trends for private label markets are expected to continue throughout 2024. New contract wins are expected to start deliveries in the second half of 2024.

However, it warned that inflationary pressures remain, especially relating to employment, general supplies, financing costs and energy, and geopolitical tensions create further inflationary and supply chain risks.

Chief executive, Chris Smith, said: “McBride has continued with its positive momentum in the first half of this financial year.

“It is pleasing to see all five divisions continuing to grow on a constant currency basis, supporting our customers with high quality products to meet the consumer shift to private label.

“This strong performance is a result of the commitment across all the business teams to provide our customers with highest quality, best value products and the strongest innovation options in the sector.”

He added: Our focus on operational delivery will see our second half year deliver ahead of our plan with full year adjusted operating profit now expected to be 10-15% ahead of previous internal expectations.”

“As we progress our Transformation programme, with specific initiatives to enhance McBride’s capabilities and tools for the future, we remain focused on performance delivery today.

“This focus, together with our continued drive to reduce debt levels, will ensure McBride is well positioned to achieve further progress in the near and medium term and we look to the future with confidence.”

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Victorian Plumbing

Skelmersdale-based online bathroom retailer, Victorian Plumbing, said it has seen a one per cent increase in year-to-date revenues.

In a trading update for the first 21 weeks of its 2024 fiscal year, ahead of its annual general meeting this morning, the group said it has experienced a three per cent reduction in average order value (AOV) year-over-year as consumers purchase more own brand products.

However, the group has continued to make market share gains, with year-over-year order volume up four per cent, more than offsetting the reduction in AOV.

The increase in own brand product sales continues to improve the group’s gross margin and, together with stable marketing spend efficiency, enables it to remain confident in delivering full year adjusted EBITDA in line with market expectations.

The group is making significant progress towards the opening of its new distribution centre, which will address current capacity constraints, unlock growth potential and create efficiencies. One-third of the warehouse fit-out is now complete, with the expectation that it will be fully operational in the second half of 2024, on schedule and within budget.

Interim results for the six months to March 31, will be published on May 28.