McBride fails to clean up as profits drop

McBride, Europe's biggest maker of retailer own-brand cleaning products, said its first-half trading profit would be down on last year, hit by the cost of restructuring its supply chain, despite a pick-up in sales.

The British group, which supplies companies such as Tesco and Carrefour with goods ranging from dishwasher tablets to deodorant, today said revenues grew two percent in the six months to the end of December 2011 with all three of its European divisions delivering growth.

However, it added that it would be hit by an exceptional charge of around £7 million after the execution of its cost-cutting programme.

"Our first half performance has been satisfactory, with revenue growth achieved in the current challenging environment," Chief executive Chris Bull said in a statement.

"Raw material prices have been stable since mid-2011 and we have completed our cost recovery plans. The consumer will increasingly look for value in these difficult times and our strategic initiatives remain fully on track."

McBride posted a 42 percent drop in annual profit last year, hit by a lag in recovering higher raw material costs, and said the short-term outlook remained tough.

Shares in McBride, which have shed a third of their value in the last year, closed at 115 pence yesterday, valuing the company at around £206 million.