McBride lowers profits guidance
Own label goods maker McBride has reduced full year profits guidance as the rate of decline in its contract manufacturing business has accelerated.
Own label goods maker McBride has reduced full year profits guidance as the rate of decline in its contract manufacturing business has accelerated.
The firm, which last month announced an unexpected cut in its dividend last month, indicated trading profit in the year to the end of June 2013 will be about £2m lower than previously expected. This is because the group has seen a 7% year-on-year decline in revenue in constant currency terms on the second half of 2012, which, along with the faster than expected decline in the contract manufacturing business, has hit profits.
"As we indicated at the full year, our financial performance this year will be second-half weighted as some contract manufacturing business is wound down, allowing us to grow our Private Label business in the second half and beyond," Chief Executive Chris Ball told shareholders at the firm's annual general meeting (AGM).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Although our contract manufacturing business has declined more rapidly than expected in the first half, I remain very encouraged by the progress being made by the business overall," he added.
Shares in the company, which had been trading close to a 52-week high of 138.25p, fell 4.75p to 125.25p in the first hour of trading after details of the AGM statement were released.
JH
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Review: Eden Roc Cap Cana – fun, sun and golf in the Caribbean
Travel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yet
The chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry