McBride sees FY results ahead of market views, shares surge

Cleaning products company McBride surged on Tuesday after it said that full-year profits were set to be ahead of market expectations as it highlighted "favourable" demand levels for private label products.

In an update for the year to the end of June, the company said: "Against the backdrop of high levels of inflation, the group has remained focussed on executing its ‘Compass’ volume, revenue and cost optimisation plans.

"New business wins combined with favourable demand levels for private label products, have meant that output levels are more favourable than expected. Customer service levels have continued to improve significantly, in turn delivering better volumes and supporting opportunities for more strategic partnerships with key customers."

As a result, it now expects full-year adjusted operating profit and full-year reported pre-tax losses to be between £5m and £10m ahead of current market expectations. Consensus expectations are for adjusted operating profit of £3m and a reported pre-tax loss of £27.3m.

Net debt on 30 June is set to be £15m to £20m lower than current market expectations of £201.5m, it added.

At 0830 BST, the shares were up 21% at 34.42p.