Shares of Manchester-based household products firm McBride plc rose as much as 10% after it announced that its banking group has waived June 2022 covenant tests until September 30, 2022.

McBride is one of Europe’s largest manufacturers and suppliers of private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets.

“In reaching the agreement of the waiver, the group has agreed to maintain in effect the restrictions announced on 22 December 2021,” said McBride.

“These are that the group will continue to maintain liquidity (cash plus facility headroom) of at least £40 million, and will not pay dividends until the group evidences compliance with its existing covenants.

“McBride had c.£75m of available liquidity as at 28 June 2022.

“The group continues to explore and assess all avenues to maintain liquidity and create additional funding for the benefit of all stakeholders.

“We are fully appreciative of the ongoing support that the banking group have and are continuing to give the group through this period of uncertainty caused by macroeconomic factors which have resulted in rapid and unprecedented rises in input costs and ongoing global supply chain challenges.

“The group continues to perform in line with market expectations and will provide a fuller trading update after the close of its current financial year ending 30 June 2022.”