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(Sharecast News) - Private-label and contract-manufactured cleaning and hygiene products maker McBride reported progress in revenue growth, profitability improvement and debt reduction in a trading update on Friday, confirming that it expected full-year performance to align with internal expectations.
The London-listed firm said that for the first half, adjusted operating profit was anticipated to be about 8% higher than the same period last year on a constant currency basis.
Revenue increased by 2.9% year-on-year, driven by a 5.9% rise in volumes.
Private label volumes grew 2.4%, while contract manufacturing volumes surged 69%, largely due to the successful launch of two multi-year contracts with major FMCG clients during the period.
McBride said it had made further strides in improving customer service levels, which supported the increased volumes and opened new opportunities for strategic partnerships with key customers.
Additionally, the group said it continued to strengthen its financial position.
Net debt fell to £117.6m at the end of the period, compared to £131.5m as of 30 June, while net debt cover, measured on a 12-month trailing EBITDA basis, improved to approximately 1.3x from 1.5x.
Supported by strong trading performance and new long-term financing facilities, the board announced plans to reinstate annual dividends for the current financial year, with further details to be disclosed alongside final results in September.
Interim results would meanwhile be released on 25 February.
At 0825 GMT, shares in McBride were up 16.06% at 117.8p.
Reporting by Josh White for Sharecast.com.
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