McBride – up nearly 44% in five weeks, this group’s shares, now 151p, are still in the ascent, with the current momentum pushing them to 180p very soon, even then they will still be cheap

14.02.2025

In just eight ‘trading days’ time, namely Tuesday 24th February, McBride (LON:MCB) will be reporting its Interim Results for the six months to end-November 2024.

Just two years ago, on 28th February 2023, I featured the business with its shares then at 24p, stating that the group’s profit recovery could well start to get its shares moving forward again.

I returned to feature the group on 6th January this year, with its shares having more than quadrupled, and with good news expected from the private label ‘market leader’ with an Interim Trading Update being imminent.

The shares were then 105p.

The Update was published on 17th January and read very well – certainly good enough in its content to get the group’s shares moving ahead to 123.50p.

Five days later I mentioned the company again, noting that “its shares were trading on an extremely low current year multiple of less than 6 times – despite the strong price rise over the last year, having doubled, they still have a lot further to rise, with the 150p to 160p range being perhaps an early trading area.”

Last night they closed at 151p, after having peaked at 154.50p.

There is certainly a building momentum for the equity, could that shine through on or before the results due on the 25th – I think that my answer would be yes, they are still heading higher.

The Business

Established way back in 1927, this £258m-capitalised Manchester-based group is now exceptionally well embedded with its client base, manufacturing from facilities across the UK, Europe and Asia Pacific.

For over five decades McBride has been a leader in private label cleaning and laundry products.

The company supports its customers across the supply chain from sourcing and formulating, to production, packing and delivery.

The company operates through five segments: Liquids, Powders, Unit Dosing, Aerosols, and Asia Pacific.

It employs over 3,400 people across 18 locations in 13 countries.

The group develops, manufactures and distributes products for both Private Label clients in the retail segment and Contract Manufacturing for established brands.

In addition, it also has a growing portfolio of its own successful brands within the household category, including Surcare, Oven Pride, Hospec, Actiff and Clean n Fresh.

We all know this group’s household and personal care products and it sells over 1bn of them a year.

Its Liquids segment produces a range of household cleaning products sold in a bottle or pouch, including laundry detergent, dishwasher liquids and surface cleaners, this division supplies over 90% of the leading retail multiples and similar customers in Europe.

The Unit Dosing segment produces cleaning products in individually packaged single dose measures, including dishwasher tablets and laundry capsules.

The company’s Powders segment produces powdered cleaning products, primarily for laundry, but also for dishwashers.

Its Aerosols segment produces a range of household, personal care, and professional cleaning products.

Analyst’s View

Analysts at Zeus Capital, Nick Spoliar and Charlie Cullen, upgraded their estimates after the update.

They also upped their Buy rating, with a 180p a share Price Objective, while their DCF target is 192p.

For the current year to end-June 2025 they are now going for revenues of £952.1m (£934.8m), with adjusted pre-tax profits of £49.0m (£53.1m), earnings of 20.8p (21.7p) and paying a 2.5p (nil) per share dividend.

The 2026 year could see £971.1m sales, £52.4m profits, 22.2p earnings and a 2.8p dividend.

Further out the brokers go for 2027 to report some £990.6m in sales, £53.3m profits, earnings of 22.6p and a dividend of 3.0p per share.

In My View

McBride’s shares, now at 151p, have further to climb, possibly before the Interim Results, and certainly thereafter.

If they ease back on any profit-taking after such a healthy rise or on the back of general market sentiment, then canny investors will surely be nipping in to take more stock out and then rest as they await the next stage of the group’s share price ascent.