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The last time we looked at McBride, we decided to sell, reasoning that its stock was likely to be pressured by the combination of rising raw materials costs and the ongoing consumer squeeze, particularly in the UK. There was nothing in yesterday's trading update to suggest that input prices had softened, nor was there much encouragement on the retail environment, which the group characterised as "weak". This is hardly surprising, giving activity on the commodity markets and increasing signs of turmoil on the high street. We look forward to the release of its full-year results, which may well prove to be a catalyst for gains. But until then, we think the backdrop remains far too uncertain, according to the Independent, which recommends to sell.
Mcbrides also say in their Trading Statement..."The Group's initiatives to reduce Supply Chain costs are progressing according to plan. We continue to expect the cost of these initiatives to be around £20m of which around £11m will be taken as an exceptional charge in the current financial year with no change to the timing of annualised benefits" Sounds like they are making big redundancies maybe the Henkel contract loss?
McBride to stop selling unprofitable products Date: Thursday 07 Jul 2011 LONDON (ShareCast) - McBride, the maker of household and personal products for supermarkets to sell under their own names, is to stop selling products that are now unprofitable due to rising raw material costs. McBride said in April that escalation in commodity prices was likely to push up costs in the following months. It said today that raw material costs have since “evolved as expected”, despite volatility in the quarter to June 30. “Our initiatives to recover these increases are continuing, but where this is not possible in the current weak trading environment, we are exiting non-profitable business,” the firm said. “A further update will be provided at the time of the group's preliminary results announcement.” McBride, whose products include Tesco shaving gel and Asda dishwasher tablets, expects to post a profit in line with expectations for the year to 30 June. Revenues are expected to be up by 1% from the previous year “driven by growth in Central and Eastern Europe, and by acquisitions, which have offset the impact of difficult trading conditions in UK.”
McBride suffer massive contract loss? Does anyone know if the announcement by Henkel “We have decided to transfer detergent tablet production of machine dishwashing applications back to our plant in Dusseldorf- Holthausen http://www.henkel.com/com/content_data/209101_2011.02.24_FY_2010_annualreport_en.pdfHenkel Is the contract McBride won of £39.3million? http://www.thegrocer.co.uk/articles.aspx?page=articles&ID=117486 If it is what’s this going to do to the share price? Anybody heard anything?
Not sure your research relates to this MCB. This company is the UK's leading supplier of Private Label Household and Personal Care products - soap powder and shampoo etc. ATB.
hope the CONDEMS have a plan for the cost of raw materials. Supermarket own brands may forced upon many but even they will not cheap at this rate, Thanks to that nutty b@llock in his sand pit a lot of good manufacturers are going to find it very difficult this year. Already they are talking about ano 5p a litre on petrol and he has not even been destroyed yet....Why do so many though follow such a muppet...Will sit this out now for while and look in once a week....
Seems to be recovering, you may not get your 120p buy-in price.
120p target for entry is sensible.
Outlook: Looking ahead, raw material price volatility and a weak retail environment are the key challenges for our business, particularly in the short term. The most recent market commodity price increases are already feeding into our material costs with the potential that material costs in the second half could increase by around £7m. The conclusions of the "Refresh" strategy review are being communicated today, including our intention to carry out further supply chain re-structuring. This is likely to lead to an exceptional charge this year of around £20m with annualised benefits of around £11m. Longer term, we believe our strategy will ensure that the Company will emerge well placed to benefit as the more challenging economic conditions accelerate the switch to private label.
Chris Bull, Chief Executive, commented: "We have delivered good results in a challenging environment of increasing raw material costs in all geographies, and weak retail markets particularly in the UK. We have delivered growth in Central and Eastern Europe, and our recent acquisitions in Czech Republic and Malaysia have performed in line with expectations. The restructuring programmes, announced in 2010, are delivering in line with plan. Our strategy review has identified significant opportunities to deliver shareholder value through focusing investment on growth categories, strengthening our relationships with key customers and improving our cost efficiency. We believe that the economic environment will cause consumers to be ever more price sensitive, and, by investing in improving our competitiveness, we expect to be able to continue to offer excellent products and value for money."
· 2% revenue growth at constant currency driven by Central and Eastern Europe · Reduction in operating profit driven by increasing raw material costs and time lag in recovery through selling price increases · Net cash generated from operations in line with expectations at £27.2m · Net debt of 1.1x annualised EBITDA · Recovery of 2010 material cost increases continues to be implemented, but more recent commodity market price increases are already feeding into our material costs
Ahead of interims next week, Panmure Gordon maintained its "hold" recommendation on household product supplier McBride (MCB) with a 190p target price. The broker notes that the shares have declined 17% since its trading update at the start of January, reflecting concerns over potential further cost increases and the ongoing challenging promotional environment in certain key categories. That said, although shares are beginning to look better value, Panmure expects margin pressure from rising input costs to limit share price performance in the absence of other news. McBride shares moved down 4.4p to 149.7p.
watched and held this share of and on for two years. McBride is a strong company and moving ahead. It has been blown back down before but only a matter of time and we will see this at the top of the highest riser board again. DYOR and you will see the pattern...
Revenue up 2%, expected profit around £20mill, at lower end of estimates. McBride also announced its intention to implement a "B Share" scheme as a mechanism for remitting dividends. The scheme will create cash flow benefits and the Group's dividend policy remains un-changed. The Group intends to announce its interim results for the six months ending 31 December 2010 on 8th February 2011.
is very cheap and they have announced a good dividend...
RNS Number : 3788O McBride PLC 28 June 2010  McBride plc Share Transactions Dealing by a person discharging managerial responsibility On 28 June 2010 the Company was advised that on 25 June 2010 Iain Napier purchased 10,000 ordinary shares of 10p each at an average price of 118.09 pence each. Following this purchase Iain now holds 44,807 ordinary shares (0.02% of current issued share capital). Dealing by a person discharging managerial responsibility On 28 June 2010 the Company was advised that on 28 June 2010 Chris Bull purchased 50,000 ordinary shares of 10p each at an average price of 112.97 pence each. Following this purchase Chris now holds 250,000 ordinary shares (0.14% of current issued share capital). Dealing by a person discharging managerial responsibility On 28 June 2010 the Company was advised that on 28 June 2010 Richard Armitage purchased 20,000 ordinary shares of 10p each at an average price of 112.97 pence each. Following this purchase Richard now holds 20,000 ordinary shares (0.01% of current issued share capital) and has interests in 61,922 LTIPs. Dealing by a person connected with a person discharging managerial responsibility On 28 June 2010 the Company was advised that on 28 June 2010 Lisa McIntyre (a person connected with Colin McIntyre) purchased 5,000 ordinary shares of 10p each at an average price of 112.97 pence each. This information is provided by RNS The company news service from the London Stock Exchange END RDSMMGZVVRVGGZM
dont go anywhere near bp thy will drop to less than £2.00 at this rate just got burnt.
RKH? or if you want a constant one way share, BPs the way to go lol, but this is probably just an over reaction.
27% down in last 24 hours! If this was an AIM share could understand that but its not. Tell me something that is not volatile at the mo?
right found it, 'The Group anticipates reporting full-year revenue growth, on a constant currency basis, to be flat following a fourth quarter that is expected to be 3% lower than prior year. This reflects ongoing branded promotional activity in UK combined with weak retail sales across Europe. The Group is seeing prices for key raw materials increasing by 4% by the end of June compared with December 2009. We believe our markets will remain volatile and there remains a significant risk that our material costs will rise by a further 4-6% during the next financial year. Our business model is designed to manage raw material increases effectively, although inevitably there will be a delay before recovery from customers.' The share price has fallen because of average results and poor prospects, then again im no expert with this share, but still looks like a tough time ahead, note the wording 'volatile'
i cant find it, thanks. As for the drop its only 7% down from what i can see
What the hell is going on......is there a burst pipe somewhere? Year end June 2009 profit £22.2m up 48% 2010 forcast profit £32.8m Rns......yesterday profit in line with expectations. SP now down 27% (?)
The fall has been well over done. This will bounce.