McBride PLC COVID-19 Update (4611H)
25 March 2020 - 6:00PM
UK Regulatory
TIDMMCB
RNS Number : 4611H
McBride PLC
25 March 2020
25 March 2020
McBride plc
COVID-19 Update
McBride plc (the "Group"), the leading European manufacturer and
supplier of Contract Manufactured and Private Label products for
the domestic Household and professional cleaning and hygiene
markets, today provides the following update.
Since early March, the Group has seen order levels across most
regions increase for a range of products such as bleach,
anti-bacterial and disinfecting sprays and certain dish and laundry
cleaning products. At this stage, it is not clear to what extent
this demand increase is due to additional end-user consumption or
short-term consumer stockpiling.
The Group's factories remain open and operating at varying
levels of production. Our ability to operate at full production is
constrained by labour attendance, certain material supplies and,
increasingly, distribution challenges for both inbound and outbound
materials. At this time excess demand levels are being met for the
most part from a combination of inventory and choices of production
priorities.
As Europe progressively 'locks down' we may see further
restrictions on our ability to operate factories to match demand
levels. We are working on output optimisation through measures such
as recruitment of additional labour, customer prioritisation, range
simplification and haulage optionality.
Revenue improvements in the short term are likely to be tempered
by reduced factory efficiencies, although we expect to see some
benefit from lower raw material input costs in the fourth quarter,
dependent on activity levels and product mix. We are actively
limiting discretionary spend, postponing or cancelling capital
projects and closely monitoring working capital levels. At this
time, and in light of the factors outlined above, we are unable to
offer any update on guidance for the current financial year.
The Group has EUR60m of committed headroom under its RCF
arrangements, with its debt/Ebitda ratio at 2.1x at 31 December
2019 compared to a limit of 3.0x. As part of its prudent management
of cash resources, the Group is cancelling the interim payment to
shareholders of 0.8p per ordinary share, announced in the recent
interim results. The Board does not expect to provide an update on
payments to shareholders before the Group's next scheduled update
on 14 July 2020.
Our amazing teams are working tirelessly to ensure we satisfy
demand levels and we are grateful for the flexibility our customers
and suppliers are affording at this time. We remain determined to
provide our customers and consumers with quality products to
deliver hygienic home and work environments.
For further information please contact:
McBride plc
Ludwig de Mot, Chief Executive
Officer 0161 203 7570
Chris Smith, Chief Financial Officer 0161 203 7570
FTI Consulting LLP 020 3727 1017
Ed Bridges, Nick Hasell
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation which came
into effect on 3 July 2016.
-Ends-
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDKZGZFNDLGGZM
(END) Dow Jones Newswires
March 25, 2020 03:00 ET (07:00 GMT)
Mcbride (LSE:MCB)
Historical Stock Chart
From Apr 2024 to May 2024
Mcbride (LSE:MCB)
Historical Stock Chart
From May 2023 to May 2024