StockMarketWire.com - European maker of manufactured and private label products McBride said full-year adjusted operating profit, pre-tax profit and earnings per share were anticipated to be "broadly in line" with expectations despite weaker-than-expected trading in the second half.

Underlying full-year revenues for the 12 months to 30 June 2019 from continuing operations at constant currency were 2.7% higher than the previous year.

In the company's Household business, which now included Asia, underlying second-half growth at constant currency was 1.6% and full-year growth ended at 3.7% year on year. Second-half year revenues were 1.7% lower than the first half year, with the UK and France especially seeing weak sales activity. The East region continued to show good growth albeit at a lower rate than seen in the first half year, the company said.

Net debt closed at around £121m, up from £114.3m a year earlier. The company said the figure was higher than expected due to higher working capital, partly due to phasing, as well as a translation impact from weaker sterling.

The weaker-than-expected trading continued into the start of the company's new financial year, with sales largely impacted by slow demand levels across a number of markets, in addition to the net effect of contract losses, mostly attributable to pricing actions taken last year. As a result, the company said it now expected revenues for its Household business to be flat for the 12 months to 30 June 2020 with Group earnings expected to be slightly below the year to 30 June 2019.

Further to the announcement of 2 May 2019, the company said it had been agreed that Rik De Vos, CEO, would step down from the board on 19 July 2019 and leave the company on 31 August 2019.

Chris Smith, Chief Finance Officer, would act as Interim CEO from 22 July 2019 whilst the search for De Vos's successor is completed and would revert to his current role once the new CEO is in place. During this interim period, David Rattigan, currently Group Financial Controller, would assume the role of Interim Director of Finance, responsible for the Group's finance function.

The company would announce its full-year results on 5 September 2019.

At 8:51am: [LON:MCB] McBride PLC share price was -7.2p at 70p



Story provided by StockMarketWire.com