Broker snap: Panmure confirms hold rating on McBride

6th Sep 2011 12:45

While McBride reported in-line full-year results, Panmure Gordon has kept its hold rating on the own label goods maker, saying that it remains cautious in regards to the following year.The firm - which manufactures household and personal products for retailers to sell under their own names - registered flat revenues of £812.4m, but the gross profit margin fell by 390 basis points to 32.6%. Adjusted operating profit dropped from £50m to £29m, due to higher input costs."As we move through FY 2012E, we anticipate the rate of input cost inflation to moderate further, allowing the company to recover costs and increase margins, but we expect this more in H2 2012E," the broker said.The target price is left at 130p.Shares were 4.51% lower at 127p by 12:32.BC