McBride hit after unexpected dividend cut
Private label product maker McBride said it was positive on the upcoming year with consumers increasingly turning to 'own brand' labels.
Private label product maker McBride said it was positive on the upcoming year with consumers increasingly turning to 'own brand' labels.
However, it said it would cut the full year dividend to 5.0p per share from 6.8p the year before.
The firm said this was necessary "to maximise the cash available for investment in additional organic Private Label growth, and to ensure that dividend cover remains appropriate".
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The move took the City by surprise and investors piled out of the stock, pushing it down 10%.
The firm said trading since the end of June was in line with expectations as it unveiled full year revenues and profits that up slightly on the year before.
One analyst at Panmure Gordon wrote "the decision to rebase the dividend from 6.8p to 5.0p is likely to surprise investors given that the balance sheet remains robust and should improve from 2.0x Net debt EBITDA in full year 2012".
Revenues for the year to the end of June rose £1.5m to £813.9m, while pre-tax profits were up to £21.8m from £19.4m the previous year.
UK divisional revenue increased by 1% to £315.2m, with core and future growth product category sales growing by 5%.
Western Continental Europe divisional revenue remained flat at £405.9m, while Central and Eastern Europe divisional revenue dropped 3% to £135.6m.
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