McBride maintains profit expectations despite tough conditions

The London-listed contract manufacturer, which also owns brands including Surcare and Oven Pride, said those impacts had been mostly offset through pricing actions in the 12 months ended 30 June.

As a result, following first-half revenue declines of 6.6% on a constant currency basis, revenue grew 13.4% in the second half to produce group revenue growth of 2.9% at constant currency for the full year.

The board said it expected adjusted operating profit would be in line with current market consensus.

Net debt, including IFRS 16 leases, closed at around £168m, widening from £118.4m a year earlier.

The group's liquidity at year-end was about £70m - £30m higher than the minimum liquidity requirement of £40m applicable under its financing arrangements.

McBride said the increase in debt was driven by working capital increases directly resulting from the effects of inflation rolled up in net working capital, and in-year losses.

“The group continues to explore and assess all avenues to maintain liquidity and create additional funding for the benefit of all stakeholders,” McBride said in its statement.

“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.”

McBride said it would announce its results for the year ended 30 June on 29 September.

At 0836 BST, shares in McBride were up 0.3% at 16.65p.

Reporting by Josh White at Sharecast.com.