old_punter
08 Jan 2018
Trading Update Down c20% today on this to 180p which looks like a support level to me so perhaps a bounce from this level given this should be a blip, ptp now to be about the same as previous year, and the stock seems to be liked and recommended. I read 60% of trades are now made by computers so one would expect more overshoot both ways so bought a few. DYOR of course and WDIK.
m4hmr
27 Dec 2017
Six share tips for 2018 [link] tipped in iii.With the pound so low against the Euro this stock is also ripe for a takeover by a European rival or Private Equity player.Buy now or regret at your leisure.
II Editor
08 Sep 2017
NEW ARTICLE: Stockwatch: A classic 'recovery to growth' play "Is FTSE SmallCap household and personal care products group LSE:MCB:McBride genuinely moving into a growth phase? In 2015, it embarked on a new strategy under a new management team, to fully exploit market-leading positions and harness growth ..."[link]
r21442
06 Jun 2017
Citywire [link] A-rated value veteran Alex Savvides has upped his stake in own-brand household staples manufacturer McBride (MCB) as its shares dip from a recent record high on a round of profit taking. Savvides increased his investment in the business from 8.7 million share to 9.2 million 5.1% worth £17.5 million at a share price of 189p, having briefly broken above 200p in the middle of May. The shares are held in his £539 million JOHCM UK Dynamic fund.McBride produces a range of cleaning and bathroom products marketed under retailers’ own names. Analysts have turned sharply bullish on the stock since half-year numbers in February reporting a 30% increase in adjusted operating profits, or 9.6% excluding the gain from a devalued sterling. The company lifted its dividend 16.7% to 1.4p per share. Numis lifted its recommendation to a buy and its price target from 205p to 211p, while Investec lifted its target from 215p to 230p.
oldjoe1
01 Mar 2017
MCB way undervalued and Momentum HOT. MCB MCBRIDE broken through the downtrend channel and moving up strongly since broker upgrades a few days back........[link] RAISES MCBRIDE PRICE TARGET TO 225 PENCE - BUY.<b><u>Company</u></b>McBride Plc engages in the manufacture and supply of co-manufactured private label products for the household and personal care markets through selected channels and markets.It offers Surcare, Clean and Fresh, McBride Direct, Limelite, and Overpride as its products.<b><u>Valuation 2017e 2018e</u></b>P/E ratio (Price / EPS) 15,5x 12,4xCapitalization / Revenue 0,48x 0,47xEV / Revenue 0,60x 0,53xEV / EBITDA 6,93x 5,79xYield (DPS / Price) 2,30% 2,74%Price to book (Price / BVPS) 4,15x 3,46x
r21442
10 Nov 2016
Tip of the week in tomorrow's IC [link] often pin a lot of hope on a new management team when it is hired to spearhead a company's recovery. In the case of cleaning and personal care product manufacturer McBride (MCB), such faith looks well-placed.The first stage of new management's turnaround strategy put a rocket under the share price, which is up by almost one-and-a-half times since we tipped the company a little under two years ago, and we believe there's more to come as chief executive Rik De Vos and chief financial officer Chris Smith get stuck into the next two stages of the company's overhaul.The initial self-help 'repair' phase of the turnaround has seen the group cut 75 per cent of its customers, which only accounted for 3 per cent of sales. The expected £20m impact on revenue is more than being made up for in profit terms by the opportunity to cut £12m a year in costs. Meanwhile, the sharper focus helped the group drive harder bargains when buying inputs, which saved a total of £5m in the 2016 financial year.Thanks to these efforts, underlying margins rose from 4 per cent to 5.3 per cent last year, towards a medium-term target of 7.5 per cent. This helped send operating profit, excluding nearly £18m of restructuring costs, up more than a quarter to £36.2m. And return on capital employed (ROCE) increased from 18.8 per cent to 23.4 per cent, getting close to the three- to five-year target of 25-30 per cent set in 2015.Management has started the second 'prepare' stage of its three-step plan, which involves increasing capital expenditure to ready McBride for the 'growth' stage of the plan. So, following a fall in capital expenditure from £21.9m to £12.8m last year, spending is expected to jump to £20m-£25m annually as £100m is ploughed into the business over four years. The wait between investment and anticipated returns could slow the upward march of ROCE temporarily, but upgrading and increasing capacity at five key sites is a sensible step towards fully rejuvenating the business. Despite the plan to increase spending, debt levels are expected to remain broadly stable. While debt is on the high side at £91m, especially factoring in the group's £31m pension deficit, the decision to cut the dividend last year, coupled with improving cover, means McBride's payout looks fairly secure. What's more, broker Numis is forecasting that profit growth will support raising the dividend to 5.9p come 2019, which represents a prospective 3 per cent yield.While the recovery story looks promising, progress is being made against a tough backdrop. Customers, mostly supermarkets, are being hit by deflation, although a move in the UK towards 'every day low prices' has reduced the competitive threat of promotions by branded rivals. The group has also hedged its euro purchasing costs, meaning the weak pound is not an issue for now. Rising oil prices ccould also put upward pressure on input costs, which would need to pass on. However, with the shares priced at just 13 times forecast 2018 earnings, the potential for further turnaround progress more than offsets these risks. Buy.
r21442
06 Oct 2016
Latest IC comment today Buy based on director buys....The show of faith by McBride's(MCB) management can be seen in light of the turnaround that is under way at the group. The appointment in 2014 of turnaround specialist Rik De Vos saw the own-label personal and household goods manufacturer set out a plan to revive its ailing fortunes. Initially the focus has been on reviving operating margins with an ultimate aim of getting them to 7.5 per cent by 2020, or possibly sooner. In the year to the end of June 2016 there was good progress on this front, with the profitability measure increasing from 4 per cent to 5.4 per cent. Among the initiatives the company has undertaken is a cull of three-quarters of its customers who together accounted for just 3 per cent of sales. The reduced complexity has helped McBride focus on improving efficiency and cutting £12m of costs. The company, which has a huge annual bill for input costs, has also been attempting to use its scale to improve its buying. With the first phase of the turnaround now drawing to a close, the focus is switching to investing in the company's operations to make it more efficient and to put it in a better position to bid for new work while maintaining profitability. Management's goal is that efficiency improvements along with the margin gains will result in a sustainable return on capital employed of 25-30 per cent.The post-referendum weakness of sterling is an issue for McBride because it has a lot of dollar and euro-based costs but generates a third of its household sales in the UK (the company does not give a geographic breakdown of personal care sales, which account for just over a fifth of the total). It also has considerable sales exposure to Europe, which means concerns about the economic ramifications of Brexit are a cause for uncertainty. Debts are also on the high side, especially considering the £31m defined-benefit pension scheme deficit. That said, management reckons borrowings will continue to fall even while the company makes about £100m of investment in the business over four years. What's more, the turnaround plan is going well and there should still be plenty of scope for sales and profits to improve as a result of a recovery. Importantly, the shares' relatively modest rating suggests there should be plenty of upside if the turnaround plan continues to deliver, as the company does not command the type of bumper 'recovery' multiple investors are used to paying for the market's most popular comeback stories - think of Tesco priced at 22 times next 12-month consensus forecast earnings, for example (last IC view: Buy, 171p, 8 Sep 2016).
r21442
12 Jul 2016
Citywire / peel hunt Household products maker McBride (MCB) is just ahead of target after its year end update and Brexit could help boost it further. Peel Hunt analyst Charles Hall retained his ‘add’ recommendation and target price of 170p on the shares, which rose 3.6% to 158.5p yesterday. ‘Profits are slightly ahead of last year as cost savings came through ahead of expectations and interest charges are lower than we expected,’ he said. ‘The company is well on track with its simplification programme and target to improve margins to 7.5%. We see Brexit/ currency movements as slightly positive for McBride.’He added that management had made ‘good progress on cultural change to focus on margins rather than sales’.‘This should make the business more resilient as well as improving profits and cash,’ said Hall. ‘This should more than offset the impact of a competitive environment, which is likely to remain difficult with the major brands competing for shelf space and other private label players likely to look to take share.’
II Editor
24 Feb 2016
NEW ARTICLE: McBride rally could have another 20% "As part of a major strategy review, LSE:MCB:McBride will parachute in a new management team to revive an underperforming division. That should at least underpin forecast-beating profit growth this year and prove a turnaround at the maker of ..."[link]
oldjoe1
22 Jan 2016
MCB, Broker Updates........ MCB.....McBride broker viewsDate Broker Recommendation Price Old target price New target price Notes21 Jan Liberum Capital Buy 151.38 200.00 200.00 Retains19 Jan Investec Buy 151.38 204.00 204.00 Reiterates
Ripley94
12 Sep 2015
Re: Time to exit? lambrini bang off with this one.Took profit here yest.
mcescher
30 Jul 2015
Interesting infographic report on MCB Analysts expect lot of growth left in MCB, 52% next year. Not without risk. [link] What is the opinion here?
LoadsaDosh2
29 Jan 2015
Time to Buy COst savings at home, QE to help Europe, and turnover 5% up, and trading 'in line', must have turned the corner now.
II Editor
05 Jan 2015
NEW ARTICLE: Is McBride about to turn higher? "Weakness in Europe is set to hit own-label household products maker LSE:MCB:McBride, but with restructuring set to save £12 million by 2016 and further business growth expected, the City is feeling positive, especially with a new CEO confirmed a ..."[link]
