McBride profits surge

FULL year pre-tax profits have surged by more than 35% at McBride, the manufacturer of personal care, skincare and toiletry products for retailers.

The listed Middleton-based company saw adjusted pre-tax profits hit £29.4m (2015: £21.7m) despite a slight 3.3% dip in turnover to £680.9m (2015: £704.2m), which was largesly a result of the weak euro.

It said its performance had benefited from progress on cost saving initiatives, including the restructuring of its UK business, and a strategic purchasing initiative which had garnered £5m in benefit over the year.

The group, which has manufacturing sites in Middleton, Manchester, Barrow, Hull and Bradford, has cut around 400 jobs as part of its restructuring project that was to deliver annualised savings of £12m.

Rik De Vos, chief executive, said: “The commitment and focus of the McBride team on the execution and delivery of our “Repair” objectives has been outstanding and this remains critical for our future success.

“Trading in the first few months of the new financial year has been in line with expectations. Our margin and cost initiatives, implemented as part of our strategy, continue to deliver the expected benefits to our profitability levels.

“Despite uncertainty in raw material pricing and foreign exchange rates, we look forward to delivering further good progress in our financial performance in the current year, consistent with our three to five year ambition.”

Around 70% of McBride’s activities are in subsidiaries outside of the UK.