McBride: FY10 Revenue To Be Flat, Starts Further UK Restructuring

24th Jun 2010 07:44

LONDON (Dow Jones)--McBride PLC (MCB.LN), a provider of private label household and personal care products, reported Thursday it expects revenue growth for the year ended June 30, on a constant currency basis, to be flat and said it has initiated a further restructuring project in U.K. MAIN FACTS: -Fourth quarter revenue growth expected to be 3% lower than prior year; Full year revenue projection reflects ongoing branded promotional activity in U.K. combined with weak retail sales across Europe. -Restructuring project in U.K. expected to deliver annualized cost savings of GBP4 million with cash expenditure of GBP4 million; Cost of the restructuring project to be treated as an exceptional item, resulting in a total exceptional charge for 2009/10 in the region of GBP14 million. -Anticipates operating profit to be in line with its expectations. -Sees prices for key raw materials increasing by 4% by the end of June compared with December 2009; Believes its markets will remain volatile and sees a significant risk that its material costs will rise by a further 4%-6% during the next financial year. -Year-end net debt is expected to be in line with company's expectations reflecting continued strong cash flows. -Concludes a new five-year EUR175 million revolving credit facility agreement. -Shares on Wednesday closed at 179.2 pence, valuing the company at GBP323 million. -By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, [email protected] (END) Dow Jones Newswires June 24, 2010 02:44 ET (06:44 GMT)