Updates

McBride -Net debt now <1.6x vs 2x expectation

June 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Having said operating profit is to be c.10-15% above previous guidance at the H1 stage, McBride has continued to trade strongly and will exceed even those upgraded expectations by 10%. Overall volume growth was 6.5% in the first nine months. Its private label volume growth was 9.7% and although input costs on chemicals have held steady, there has been a bit of inflation on sustainable packaging and on employment. But with the wind in its sails, net debt/EBITDA has fallen and is said to be “close to 1.6x,” an improvement on previous guidance of “below 2x.” In the light of the statement, Investec has upgraded its FY24 pretax profit forecast to £54.5m for eps of 22.5p, a PE of 5.3. As the broker notes, the shares were trading at PE c ...

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