Restructuring pays off for McBride
FULL year profits will be slightly ahead of expectations for McBride, the manufacturer of personal care, skincare and toiletry products for retailers.
The Middleton company said full year performance had benefited from progress on cost saving initiatives, including the restructuring of its UK business.
The group, which has manufacturing sites in Middleton, Manchester, Barrow, Hull and Bradford, cut around 400 jobs as part of its restructuring project that was to deliver annualised savings of £12m to the end of June.
It added that a decision to reduce its range of products and customers had resulted in purchase driven savings, which also helped the bottom line.
“The simplification programme to reduce the number of small customers served by the group remains on track with full year sales lower by approximately £6m as a result of this action,” it said in a statement to the stock market.
But McBride warned that revenues continued to be affected by ongoing price pressures in a number of markets, especially in the UK, which meant that revenues for the year ended 30 June 2016 were 1.9% lower than the prior year.
Around 70% of McBride’s activities are in subsidiaries outside of the UK. The company noted that the EU referendum outcome had no effect on the group’s day-to-day operations thus far.
