Shares of Manchester-based household cleaning products firm McBride plc rose about 7% on Friday after it published a trading update saying it expects profit before tax “to be at least 10% ahead of the current market consensus” for the year ending June 30, 2021.
McBride’s biggest shareholder is activist hedge fund Teleios Capital Partners with 23.71%. Duke University Management Company (DUMAC) owns 16.80% and Zama Capital Advisors own 10.34%.
The company is one of Europe’s largest makers of retailer own brand household goods.
“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,” said McBride.
“In 2019, the group experienced a weak November and December trading period, however in 2020, 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 2%.
“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.
“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 …”