REG - McBride PLC - Final Results
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RNS Number : 5976Z McBride PLC 17 September 2025
McBride plc
('McBride' or the 'Group')
Results for the year ended 30 June 2025
Delivering another strong year: dividend reinstated reflecting sustained
higher profitability levels and normalised balance sheet, underscoring
confidence in the future.
17 September 2025
McBride, the leading European manufacturer and supplier of private label and
contract manufactured products for the domestic household and professional
cleaning/hygiene markets, announces its preliminary results for the year ended
30 June 2025.
Year ended Year ended Constant
30 June 30 June Reported currency
£m (unless otherwise stated) 2025 2024 change change((1))
Revenue 926.5 934.8 (0.9)% 0.7%
Adjusted operating profit((2)) 66.1 67.1 (1.0) 0.5
Operating profit 60.2 64.3 (4.1) (2.6)
Adjusted EBITDA((2)) 85.8 87.1 (1.3) 0.4
Adjusted profit before taxation((2)) 54.9 53.1 1.8 2.7
Profit before taxation 49.0 46.5 2.5 3.3
Adjusted basic earnings per share((3)) 22.1p 22.2p (0.1)p 0.3p
Basic earnings per share((3)) 19.5p 19.3p 0.2p 0.6p
Dividend per share 3.0p - 3.0p
Net debt((2)) 105.2 131.5 (26.3)
Adjusted return on capital employed((2)) 33.0% 33.5% (0.5)ppts
(1)Comparatives translated at financial year 2025 exchange rates.
(2)Refer to note 19 for definition.
(3)See note 8.
Chris Smith, Chief Executive Officer, commented:
"McBride has delivered another year of strong operational and financial
results, marking five consecutive half years of these materially improved
profitability levels. This sustained performance reflects the effectiveness of
our strategy and the dedication of our teams across the Group, further
strengthening our industry leadership across Europe.
We have continued to deepen our customer partnerships, secured new long-term
contracts, and reinforced our strategic focus in key markets such as Germany
and laundry. These achievements supported by a step up in service levels,
alongside disciplined cost and margin management, have enabled us to deliver
another year of profit growth and a further reduction in net debt, ahead of
our leverage target.
The reinstatement of dividends reflects our confidence in the business'
trajectory and our commitment to delivering long-term shareholder value. These
results demonstrate the strength of our core activities and our normalised
financial situation, positioning us well for continued growth and investment."
Financial highlights
● Revenue of £926.5m (2024: £934.8m), up 0.7% at constant currency((1)), with
volume growth from both private label and contract manufacturing
● Adjusted operating profit((2)) of £66.1m (2024: £67.1m); on a constant
currency basis, adjusted operating profit increased by £0.5m as a result of
good operational improvements, growth and cost and margin management
● Operating profit of £60.2m (2024: £64.3m)
● Adjusted EBITDA((2)) of £85.8m (2024: £87.1m), representing 9.3% of revenue
● Profit before tax of £49.0m (2024: £46.5m)
● Net debt((2)) at £105.2m (2024: £131.5m), representing 1.2x adjusted
EBITDA((2)), ahead of target level
Strategic and operational highlights
● Solid growth in strategic focus markets of laundry and Germany; contract
manufacturing grew significantly, now representing 13.6% of revenue
● Significant improvement in customer service levels, averaging over 94% for the
year - the highest in more than six years
● Transformation programme progressing well and on track for five-year £50m net
benefit
● Adjusted EBITDA % levels close to double digit medium-term ambition
● Strong improvement in productivity and factory performance
● Significant reduction in safety incident rate
Positive outlook
● Early months of new financial year seeing volumes in line with expectations
● Market share for private label overall holding at recent all-time high
● Good progress with customer partnerships, robust pipeline of new launches
● Continued focus on delivering customer value through smart pricing, product
engineering and product positioning insights for customers
● Operational delivery and cost efficiency to support profit progression
● Continued activities to drive value from Transformation programme
● Strong financial position to support medium-term investment opportunities and
shareholder returns
Analyst and investor presentation
A results presentation will be available on the investor relations page of the
McBride plc website from 10.00am today.
McBride plc
Chris Smith, Chief Executive Officer
Mark Strickland, Chief Financial Officer
Instinctif Partners 020 7457 2020
Hannah Scott
Galyna Kulachek
Forward-looking statements
This announcement contains forward-looking statements about financial and
operational matters. Forward-looking statements can be identified by the fact
that they do not relate strictly to historical or current facts. They
sometimes use words such as 'may', 'will', 'could', 'should', 'aim', 'expect',
'plan', 'intend', 'anticipate', 'believe', 'achieve', 'project', 'predict',
'seek', 'estimate', 'objective', 'goal', 'target' or other words of similar
meaning. These statements are based on the current views, expectations,
assumptions and intentions of management, and are based on information
available to management as at the date of this announcement. Because they
relate to future events and are subject to future circumstances, these
forward-looking statements are subject to risks, uncertainties and other
factors which may not have been in contemplation as at the date of the
announcement and/or which are beyond McBride plc's ability to control or
precisely estimate, including (but not limited to) those set out in this
announcement and the economic and business circumstances occurring from time
to time in the countries, sectors and markets in which McBride plc operates.
As a result, actual financial results, operational performance and other
future developments could differ materially from those envisaged by the
forward-looking statements. No assurance can be given that any particular
expectation will be met, and undue reliance should not be placed on any
forward-looking statements. Additional factors that may affect future results
are contained in the 'Principal risks and uncertainties' section of McBride
plc's most recent Annual Report and Accounts.
Any forward-looking statements contained in this announcement speak only as of
the date they are made. Neither McBride plc nor any of its affiliates
undertake any obligation to update or revise any forward-looking statements,
whether as a result of new information, future developments or otherwise,
except to the extent required by applicable law or regulation.
This announcement does not constitute an offer or invitation to underwrite,
subscribe for, or otherwise acquire or dispose of any McBride plc shares or
other securities, or of any of the businesses or assets described in the
announcement, nor shall it (or any part of it) or the fact of its distribution
form the basis of, or be relied upon in connection with, any contract
therefore.
Overall business performance
McBride has delivered another year of strong operational and financial
performance and has now posted five consecutive half years operating at these
materially improved profit levels, marking a sustained recovery from the
challenges faced three to four years ago. The Group has successfully restored
operational stability, strengthened its overall financial position, and now
has the flexibility to invest for growth, efficiency and long-term stability.
This progress was underpinned by continued improvements across many aspects of
business activity, including health and safety, customer service levels and
quality, alongside the efficiencies delivered through the Transformation
programme. Particularly pleasing is the continued progress towards the Group's
strategic imperative of a safe working environment, with the lost time
incident frequency rate almost halving in the year. Customer service levels
stepped up to new recent highs, delivering increased volumes and supporting
further opportunities for strategic partnerships with key customers.
The Group made further progress in its strategic markets and geographies,
driven by strengthening customer partnerships. Total sales volumes grew 4.3%
year on year, with private label volumes up 1.4% and contract manufacturing
volumes substantially up by 48.9%. The latter reflects the full-year impact of
a new significant long-term contract manufacturing agreement, which launched
in the fourth quarter of the previous financial year, along with two new
multi-year contracts secured with large FMCG clients in the first half of this
year.
McBride further strengthened its position in its core strategic focus areas of
Germany and laundry. It reinforced its commitment to Germany by opening a new
office in Bonn, and delivered growth in laundry detergents despite a fierce
competitive backdrop from both branded offers and other private label
producers.
The Group built on the significant improvement in financial performance
achieved in recent years, delivering a further underlying increase on a
constant currency basis in adjusted operating profit to £66.1 million (2024:
£65.6m((1))), driven by a combination of strong price and margin management,
improved operational performance and disciplined cost control.
Private label demand remains strong with overall market share holding at
current, all-time high levels. Promotional activity from branded competitors
was particularly elevated during the year, impacting private label volumes,
although this eased towards the end of the financial year, while retailers
increased their emphasis on value for consumers in light of ongoing
cost-of-living pressures.
Input costs for materials increased marginally in certain categories, in
particular for natural-based products, while materials costs in general
remained stable. Inflation in labour and services remains elevated, adding
cost pressures to both overheads and direct labour. The Group is working
closely with its customers to ensure it retains its competitive position by
identifying opportunities for cost reduction and efficiency. The ability to
maintain service levels and quality while managing costs has been a critical
differentiator, and McBride remains focused on protecting margins through
disciplined pricing, product engineering, operational efficiency and supply
chain agility.
The Group's financial position was further strengthened by a £26.3 million
reduction in net debt to £105.2 million at 30 June 2025 (2024: £131.5m). As
a result, it has beaten its target of net debt/adjusted EBITDA below 1.5x,
closing the year at 1.2x. This represents a significant milestone in McBride's
journey to restore financial resilience and flexibility.
Key to this important development was the successful refinancing of the
Group's debt facilities in November 2024, completed with significantly
improved terms. The new, long-term financing facilities reflect the confidence
of McBride's banking partners in its strategy and performance, enhancing the
Group's ability to support the 'Core Plus' and 'Buy and Build' strategic
ambitions, whilst continuing to strengthen the operational platform and
normalise capital allocation options. As a result of this, and the solid
trading performance, the Board is reinstating the annual dividend,
recommending a final dividend of 3.0 pence per share for the year ended 30
June 2025, subject to approval by shareholders at the Company's 2025 AGM.
(1)Comparatives translated at financial year 2025 exchange rates.
Strategic progress
McBride's Transformation agenda continued to progress well and remains on
track to deliver £50 million net benefits over the five years to 2028. This
year saw the deployment of the Commercial Excellence programme, while the
Service Excellence and SAP S/4HANA programmes continued at pace. The
programmes in delivery provided a net benefit of £5.0 million during the
year, while customer service levels improved dramatically, with several of our
factories increasing output to record levels. These operational gains were
instrumental in supporting our customers and enhancing our reputation as a
reliable partner.
The Group made important progress on the SAP S/4HANA ERP system upgrade
programme. Final user acceptance testing launched in August 2025 and the first
wave of the programme is expected to go live in the autumn of 2025, subject to
the results of this final user testing. This will mark a major step forward in
McBride's digital transformation journey. The programme will support better
data analytics, standardised processes, improved planning and enhanced
customer service across the Group.
Execution of the 'Core Plus' expansion plans commenced, with a significant
capital investment approval for expanding UK operations. This marks the start
of a broader programme to expand capacity, improve efficiency and support
future growth, as outlined at the Capital Markets Day in March 2024.
Sustainability
McBride built on its sustainability agenda over the year, notably through its
commitment to the Science Based Targets initiative (SBTi) as part of a wider
environmental strategy. The Group made great progress towards its 2025
targets, set in 2019, and will now replace them with the new SBTi targets. The
team is working closely with ClimatePartner® to advance carbon reduction
efforts by tracking progress and providing quality metrics and insight. These
efforts are embedded across all divisions and support the Group's long-term
climate objectives, and it is encouraging to see the progress made in reducing
carbon emissions for the last year, with an absolute reduction of 3.1% and an
intensity level reduction of 7.6%.
Current trading and outlook
McBride enters the 2026 financial year from a position of strength. The Group
has now delivered five consecutive half years at these profit levels, and its
financial and operational foundations are stable.
Demand for private label products continues to be strong, growing in the last
twelve months overall, with private label market share holding at the most
recent all-time high levels. McBride expects to achieve volume growth in the
coming period as a result of successful contract wins, both for private label
and contract manufacturing.
The inflationary backdrop continues to shape retailer behaviour, with many
seeking value-led propositions and cost-reduction initiatives. McBride is well
positioned to respond to these dynamics, leveraging its scale, efficiency and
customer partnerships to deliver competitively priced and high-quality
products.
McBride's focus on excellence, supported by the Transformation programme, will
secure its ability to deliver sustainable growth and long-term value for
customers, shareholders and wider stakeholders.
Divisional performance review
Year ended Year ended
30 June 30 June Constant
2025 2024 Reported currency
Revenue £m £m change change
Liquids 529.6 532.8 (0.6)% 0.9%
Unit Dosing 228.9 233.6 (2.0)% (0.3)%
Powders 85.5 92.8 (7.9)% (6.0)%
Aerosols 58.9 50.9 15.7% 18.3%
Asia Pacific 23.6 24.7 (4.5)% (5.6)%
Group 926.5 934.8 (0.9)% 0.7%
Year ended Year ended Constant
30 June 30 June Reported currency
2025 2024 change change
Adjusted operating profit/(loss) £m £m £m £m
Liquids 41.0 45.6 (4.6) (3.8)
Unit Dosing 22.5 19.4 3.1 3.4
Powders 6.8 6.0 0.8 1.0
Aerosols 3.1 2.1 1.0 1.1
Asia Pacific 1.1 1.4 (0.3) (0.3)
Corporate (8.4) (7.4) (1.0) (0.9)
Group 66.1 67.1 (1.0) 0.5
Liquids performance review
The Liquids division delivered revenue of £529.6 million (2024: £532.8m),
representing a 0.9% increase on a constant currency basis. Adjusted operating
profit was £41.0 million (2024: £45.6m), resulting in an adjusted operating
profit margin of 7.7% (2024: 8.6%). Adjusted ROCE increased to 40.5% (2024:
37.8%).
Sales volumes rose 3.5%, driven primarily by the successful onboarding of a
major new long-term contract manufacturing agreement. Private label volumes
remained broadly flat, as gains from new contracts were offset by the impact
of branded promotions, which affected private label market share in the second
half of the year.
Adjusted operating profit declined due to an increased mix in favour of
lower-value products, small rises in raw material costs in certain categories
and continued inflationary pressure in labour and services. These challenges
were partially offset by Transformation initiatives, cost reduction efforts
and operational efficiency improvements.
Regionally, the division delivered improved performance in Germany and France,
with slightly weaker performance in the UK as a result of lower volumes. Italy
had a challenging year, mostly as a result of suboptimal customer service
levels in the prior year and certain contract losses, with a more positive
outcome for this region expected in the coming year.
The division maintained a sharp focus on safety, achieving a 60% year-on-year
reduction in accidents as all teams advanced their zero lost time incident
strategies. Customer service and quality levels also saw significant
improvements over the past twelve months.
Innovation remained a key priority, with initiatives particularly focused on
building a sustainable innovative product portfolio. Product launches were
targeted at reducing CO₂e emissions through material reformulation,
increased concentration of products and the development of alternatives to
plastic packaging. Additionally, the division undertook capital investment in
automation, specifically the implementation of mixed case packing lines, which
was completed in the second half of the year and is expected to deliver
further benefits in 2026.
Unit Dosing performance review
The Unit Dosing division delivered revenue of £228.9 million (2024:
£233.6m), representing a (0.3)% decline on a constant currency basis.
Adjusted operating profit increased to £22.5 million (2024: £19.4m), with
the adjusted operating margin increasing to 9.8% (2024: 8.3%). Adjusted ROCE
increased to 35.4% (2024: 32.8%).
The division successfully expanded its margin through operational efficiencies
supported by the Transformation programme, tight control of overhead costs and
significantly improved customer service. In addition, the division achieved
improvements in safety performance over the year.
Despite a 5.0% contraction in the broader Unit Dosing market, largely due to
declining branded product volumes, the division outperformed the sector. The
division's overall volumes grew by 0.9% in terms of number of packs, while
there was growth of 2.4% in individual dose formats, reflecting a steady
market shift toward larger pack sizes. Volumes rose 7.3% in contract
manufacturing, mostly driven by successful new product launches, with private
label volumes broadly flat.
The division continued to invest in the capabilities that matter most to its
customers. New capacity expansions, commissioned primarily in the latter half
of the year, strengthened the operational platform and positioned the business
for sustained growth in the years ahead.
In addition to expanding production capabilities, the division sustained
strong momentum in its innovation agenda, with a continued focus on enhancing
sustainability across products, raw materials and packaging. Significant
efforts were made to optimise product weight and efficiency, ensuring that
performance remains in line with the high standards expected by customers.
Unit Dosing launched two major contract manufacturing agreements in 2025,
further expanding its capabilities and product portfolio in this key growth
area. These partnerships reflect a strategic shift towards innovation-led
growth, sustainability and leadership in dishwash, reinforced by McBride's
long-term Transformation agenda.
Powders performance review
The Powders division delivered revenue of £85.5 million (2024: £92.8m),
representing a (6.0)% decline on a constant currency basis. Adjusted operating
profit increased to £6.8 million (2024: £6.0m), resulting in an adjusted
operating profit margin of 8.0% (2024: 6.5%) and an adjusted ROCE of 30.0%
(2024: 21.5%).
Following a strong year of business wins in 2024, the division shifted focus
to improving operational delivery in 2025. Revenue decreased due to delays in
contract launches, changes in product mix and a decline in UK demand. Despite
these challenges, the division maintained resilience through cost control,
operational efficiency and margin management.
Sales volumes decreased by 4.4% year on year, impacted by delayed product
launches and certain contracts ending. Private label volumes declined by 4.6%
while contract manufacturing volumes, which now make up c.30% of the
division's total volumes, decreased by 5.0%.
The division continued innovating, focusing on sustainable formulations and
packaging, especially for the German retail market, and compact formats.
Strategic initiatives drove operational changes to enhance sustainability,
including Overall Equipment Effectiveness (OEE) monitoring to boost capacity,
investments to cut energy use and emissions, and mono-material packaging to
support recycling.
Aligned with the strategic priorities set in 2021, the division continued
delivering award-winning products, driven by R&D in compaction and
sustainability. Operational excellence remained a focus, improving efficiency
and customer service as the division secured new customer wins and extended
its private label presence into new markets.
Aerosols performance review
Revenue grew to £58.9 million (2024: £50.9m), an 18.3% increase on a
constant currency basis, generating an adjusted operating profit of £3.1
million (2024: £2.1m) and an adjusted operating profit margin of 5.3% (2024:
4.1%). Adjusted ROCE increased to 23.1% (2024: 17.7%).
The division's performance was primarily driven by significant contract wins
aligned with the division's targeted geographical expansion strategy. Revenue
growth was led by private label contracts, with sales volumes increasing 26.2%
and the division maintaining strong positions in France and Portugal while
achieving significant growth in Germany. Gains were also made in contract
manufacturing, with sales volumes growing 18.3%.
Revenue in Aerosols continued to be predominantly private label-based,
reflecting its capability to produce niche products, while contract
manufacturing remained a stable and moderately growing part of the portfolio.
Innovation remained a key focus, with the successful rollout of sustainable
packaging solutions such as tin-plate cans and cardboard caps. The division
further advanced cleaner formulations and continued efforts to reduce its
environmental impact, particularly in the use of virgin plastic.
Strategically, Aerosols made major capital investments to expand both filling
and mixing capacity in personal care. The division also broadened its product
range to strengthen category leadership and enhance relevance in the market,
particularly in insecticides and air fresheners.
Asia Pacific performance review
The Asia Pacific division delivered revenue of £23.6 million (2024: £24.7m),
representing a (5.6)% decline on a constant currency basis. Adjusted operating
profit was £1.1 million (2024: £1.4m), resulting in an adjusted operating
profit margin of 4.7% (2024: 5.7%) and an adjusted ROCE of 15.1% (2024:
15.9%).
Performance was impacted by delays to contract launches in Australia, subdued
private label demand in Malaysia and Vietnam, and adverse foreign exchange
effects. Despite these challenges, the division effectively managed costs to
mitigate the impact on margins.
Sales volumes grew 6.3%, driven by a significant rise in contract
manufacturing volumes in Vietnam, and new product launches in the second half
of the year. Private label sales in Malaysia declined slightly due to reduced
demand and a key customer's strategic exit from the segment.
The division gained traction in Australia's private label market, especially
in personal care and, more recently, in household categories. Pricing remained
highly sensitive across the region, with intensified competition as more
players shifted focus to Asia amid rising geopolitical tensions, adding
pressure on margins.
Sustainability efforts continued in collaboration with customers, focusing on
greener packaging and more natural formulations.
Group results
Adjusted operating profit decreased by £1.0 million to £66.1 million (2024:
£67.1m) but increased by £0.5 million at constant exchange rates. Operating
profit of £60.2 million was lower than the prior year (2024: £64.3m). The
Group reported adjusted EBITDA of £85.8 million (2024: £87.1m), which had
increased by £0.4 million at constant exchange rates and resulted in an
adjusted EBITDA margin of 9.3%, in line with the prior year.
The underlying increase in adjusted operating profit on a constant currency
basis was achieved through a combination of price and margin management,
enhanced operational performance and tight cost control.
Adjusted profit before taxation increased 3.4% to £54.9 million (2024:
£53.1m). Reported profit before taxation was £49.0 million (2024: £46.5m).
Exceptional items
Exceptional items of £4.0 million were recorded during the year
(2024: £4.6m). The charge comprised the following:
· £0.4 million costs relating to the re-evaluation of the
environmental remediation provision;
· £1.5 million employee severance costs in relation to organisational
changes aimed at enhancing long-term operational efficiency and capability in
line with the Group's strategy; and
· £2.1 million costs relating to a Group-wide strategic review of
growth options.
Finance costs
At £11.2 million, adjusted finance costs were £2.8 million lower than the
prior year (2024: £14.0m), driven by decreases in overall market interest
rates and from the lower levels of debt within the Group. Total finance costs
of £11.2 million (2024: £17.8m) included exceptional finance costs of £nil
(2024: £3.8m).
Taxation
The tax charge on adjusted profit before tax for the year was £17.3 million
(2024: £14.8m) and the effective tax rate was 32% (2024: 28%).
The Group operates across a number of jurisdictions and tax risk can arise in
relation to the pricing of cross‑border transactions. Associated provisions
for uncertain tax positions were reduced in the year, mainly due to expiries
in the statute of limitations.
Earnings per share
On an adjusted basis, diluted earnings per share was 21.1 pence (2024: 21.7p).
Total adjusted basic earnings per share decreased to 22.1 pence (2024: 22.2p),
with basic earnings per share at 19.5 pence (2024: 19.3p).
Payments to shareholders
As a result of the refinancing of the revolving credit facility (RCF), the
block on shareholder distributions has now been removed, permitting the
Company to restore the payment of dividends and consider share buy-backs. The
Board is recommending a final dividend of 3.0 pence per ordinary share for the
year ended 30 June 2025, subject to approval by shareholders at the Company's
2025 AGM. If approved, the recommended final dividend will be paid as a cash
dividend on 28 November 2025 to all holders of ordinary shares who are on the
register of members at 5.00pm on 31 October 2025. The ordinary shares will be
marked as ex-dividend at 5.00pm on 30 October 2025.
Cash flow and balance sheet
Year ended Year ended
30 June 30 June
2025 2024
£m £m
Adjusted EBITDA((1)) 85.8 87.1
Working capital excluding provisions and pensions 13.7 (4.6)
Share-based payments 1.6 1.6
Loss on disposal of property, plant and equipment 0.4 1.4
(Reversal of impairment)/impairment of fixed assets (0.6) 0.2
Pension deficit reduction contributions (7.0) (4.0)
Free cash flow((1)) 93.9 81.7
Exceptional items (3.2) (1.0)
Interest on borrowings and lease liabilities less interest receivable (7.9) (10.9)
Refinancing costs paid (1.8) (5.5)
Tax paid (17.9) (5.1)
Net cash generated from operating activities 63.1 59.2
Net capital expenditure((2)) (30.4) (19.6)
Repayment of lease liabilities (4.2) (4.5)
Debt financing activities (2.2) (25.9)
Settlement of derivatives 0.4 1.1
Free cash flow to equity((3)) 26.7 10.3
Purchase of own shares (2.4) (2.8)
Net increase in cash and cash equivalents 24.3 7.5
Free cash flow was £93.9 million (2024: £81.7m) in the year to 30 June 2025,
mostly attributable to the strong performance in adjusted EBITDA and a focus
on achieving significantly improved working capital inflows.
Refinancing costs of £1.8 million (2024: £5.5m) reflected the renegotiation
of the Group's RCF during the year. The significant increase in tax paid to
£17.9 million (2024: £5.1m) resulted from the return to taxable profit
across the tax jurisdictions in which the Group operates.
During the year, net capital expenditure was £30.4 million (2024: £19.6m) in
cash terms. The Group continues to prioritise capital expenditure to support
divisional growth objectives and the SAP S/4HANA programme.
The Group's net assets increased to £94.3 million (2024: £63.4m).
Gearing((4)) decreased to 53.3% (2024: 66.0%) as net debt levels decreased by
£26.3 million. Adjusted ROCE((1)) of 33.0% was slightly below the prior year
(2024: 33.5%), impacted by marginally reduced profit levels coupled with
significant increases in capital expenditure, particularly relating to the SAP
S/4HANA programme, which is expected to go live in the coming months.
(1)Refer to note 19 for definition.
(2)Net capital expenditure is capital expenditure less proceeds from sale of
fixed assets.
(3)Free cash flow to equity excludes cash flows relating to transactions with
shareholders.
(4)Gearing represents net debt divided by the average of opening and closing
capital, being total equity plus net debt.
Bank facilities and net debt
Net debt at 30 June 2025 was £26.3 million lower than the prior year end at
£105.2 million (2024: £131.5m).
During the year, the Group renegotiated its €175 million multi-currency,
sustainability-linked RCF, increasing the facility to €200 million and
securing a four-year term to November 2028 with an option to extend by up to
two years. Additionally, an uncommitted €75 million accordion feature,
available in previous agreements, has been reinstated. The overall facility
has reverted to more traditional covenant requirements, and ensures that the
Group continues to have significant levels of liquidity headroom and funds for
expansion.
At 30 June 2025, liquidity((1)), which is no longer a covenant requirement of
the RCF agreement, was £141.4 million (2024: £98.3m).
At 30 June 2025, the net debt cover ratio((1)) under the RCF funding
arrangements was 0.4x (2024: 0.8x) and the interest cover ratio((1)) was 8.5x
(2024: 6.8x). The amount undrawn on the facility was £107.2 million (2024:
£82.9m). Under the new RCF agreement, net debt cover and interest cover
covenants testing restarted with effect from 31 December 2024.
The RCF, which is aligned with the Loan Market Association's 'Sustainability
Linked Loan Principles', now incorporates two sustainability performance
targets which are central to McBride's commitment to maintaining a responsible
business and contributing actively to a more sustainable future:
1. Greenhouse gas emissions (GHGs): the percentage reduction in Scope 1
and Scope 2 greenhouse gas emissions of the Group, including emissions from
consumption of gas, electricity and oil and other direct emissions such as
refrigerants and vehicle fleets as against the baseline. During the year, the
Group achieved a reduction of 42.9% (2024: 35.8%), surpassing the loan
agreement target of 40.21% by 30 June 2025.
2. Supplier engagement: percentage of GHG emissions attributed to
suppliers of the Group, for purchased goods and services with a science-based
target that has been validated by the Science Based Targets initiative or
otherwise assessed by a third party. During the year, engagement equivalent to
21.6% (2024: 16.2%) was achieved, exceeding the loan agreement target of
20.0%.
Successful achievement of both annual targets results in a reduction of 0.05%
of the margin of the facility.
At 30 June 2025, the Group had a number of facilities whereby it could borrow
against certain of its trade receivables. In the UK, the Group had a £20
million facility, committed until May 2026. In Spain, France and Belgium, the
Group had an unlimited facility committed until May 2026. In Germany and
Denmark, the Group had a €45 million facility, committed until May 2026. In
Italy, the Group had a €23 million facility, committed until April 2028. The
Group can borrow from the provider of the relevant facility up to the lower of
the facility limit and the value of the respective receivables.
(1)Refer to note 19 for definition.
Pensions
In the UK, the Group operates a defined benefit pension scheme, which is
closed to new members and to future accrual.
At 30 June 2025, the Group recognised a deficit in the scheme of £23.0
million (2024: £27.5m). The decrease in deficit is due to deficit reduction
contributions paid by the Group, an increase in discount rate placing a lower
value on the liabilities, and lower-than-expected inflation. These were offset
to some extent by interest on the deficit, a decrease in asset values mostly
due to liability-matching assets that the Fund invests in, and allowance for
the 31 March 2024 triennial valuation, which is the difference between the
estimated and actual experience in the Fund over the inter-valuation period.
Following the triennial valuation as at 31 March 2024, McBride and the Trustee
agreed a new deficit reduction plan based on the scheme funding deficit of
£32.3 million. A total amount of £7.0 million was paid in the year ended 30
June 2025, being a £5.3 million annual deficit reduction contribution, plus a
£1.7 million 'one-off' payment for the removal of the Trustee's dividend
matching mechanism. It was agreed that, from 1 July 2025, £5.7 million per
annum is payable until 30 June 2028 and, from 1 July 2028, deficit reduction
contributions revert to the previous agreement of 1 October 2024, with £4.0
million payable per annum, plus up to £1.7 million per annum in conditional
profit-related contributions, which are determined as follows:
· If adjusted operating profit exceeds £35.0 million, additional
annual deficit contributions of £1.7 million will be due over the following
year.
· If adjusted operating profit is below £30.0 million then no
profit-related contributions will be due the following year.
· If adjusted operating profit is between £30.0 million and £35.0
million, a proportion of the £1.7 million contribution will be due the
following year, with incremental increases of £0.34 million of additional
contributions for each whole £1.0 million of adjusted operating profit in
excess of £30.0 million.
As previously disclosed in the Annual Report and Accounts 2024, the NTL vs
Virgin Media case could have implications for the Company. Following the Court
of Appeal upholding the 2023 High Court ruling on 25 July 2024, the Trustee
initiated the process of investigating any potential impact for the Fund.
In June 2025, the Department for Work and Pensions (DWP) confirmed that the
Government will introduce legislation to give affected pension schemes the
ability to retrospectively obtain written actuarial confirmation that
historical benefit changes met the necessary standards. Further detail on the
approach and process for this retrospective confirmation is expected to follow
in due course.
The Company is therefore disclosing this issue as a potential contingent
liability at 30 June 2025 and will review again based on the findings of the
detailed investigation and further legislation updates.
Following the DWP's announcement, the Group and the Trustee do not expect the
Virgin Media ruling to give rise to any additional liabilities.
The Group has other post-employment benefit obligations outside the UK that
amounted to £1.9 million (2024: £1.9m).
Principal risks and uncertainties
The Group is subject to both internal and external risk factors to its
business and has a well-established set of risk management procedures. The
following risks and uncertainties are those that the Directors believe could
have the most significant impact on the Group's business:
· Changing market, customer and consumer dynamics;
· Disruption to systems and processes;
· Financing risk;
· Safe and high-quality products;
· Health and safety;
· Climate change and environmental concerns;
· Challenges in attracting and retaining talent;
· Increased regulation;
· Economic, political and macro environment instability; and
· Business transformation challenges.
Consolidated Income Statement
Year ended 30 June 2025
2025 2024
Adjusting items Adjusting items
Adjusted Total Adjusted Total
Note £m £m £m £m £m £m
Revenue 3 926.5 - 926.5 934.8 - 934.8
Cost of sales (584.4) - (584.4) (586.9) - (586.9)
Gross profit 342.1 - 342.1 347.9 - 347.9
Distribution costs (85.5) - (85.5) (81.3) - (81.3)
Administrative costs (191.1) (5.9) (197.0) (199.3) (2.8) (202.1)
Reversal of impairment/(impairment) of property, plant and equipment
0.6 - 0.6 (0.2) - (0.2)
Operating profit/(loss) 66.1 (5.9) 60.2 67.1 (2.8) 64.3
Finance costs 6 (11.2) - (11.2) (14.0) (3.8) (17.8)
Profit/(loss) before taxation 54.9 (5.9) 49.0 53.1 (6.6) 46.5
Taxation 7 (17.3) 1.5 (15.8) (14.8) 1.6 (13.2)
Profit/(loss) for the year 37.6 (4.4) 33.2 38.3 (5.0) 33.3
Earnings per ordinary share attributable to the owners of the parent during 8
the year
Basic earnings per share 19.5p 19.3p
Diluted earnings per share 18.6p 18.8p
Consolidated Statement of Comprehensive Income
Year ended 30 June 2025
2025 2024
£m £m
Profit for the year 33.2 33.3
Other comprehensive income/(expense)
Items that may be reclassified to profit or loss:
Currency translation differences of foreign subsidiaries 0.8 0.1
Gain on net investment hedges 0.1 0.8
Loss on cash flow hedges in the year (0.6) (1.3)
Cash flow hedges transferred to profit or loss (0.6) (1.6)
Taxation relating to the items above (0.2) (0.6)
(0.5) (2.6)
Items that will not be reclassified to profit or loss:
Net actuarial loss on post‑employment benefits (1.2) (5.6)
Taxation relating to the items above 0.3 1.3
(0.9) (4.3)
Total other comprehensive expense (1.4) (6.9)
Total comprehensive income 31.8 26.4
Consolidated Balance Sheet
At 30 June 2025
2025 2024
Note £m £m
Non-current assets
Goodwill 10 19.8 19.7
Other intangible assets 10 18.3 9.8
Property, plant and equipment 10 120.3 114.4
Derivative financial instruments 11 0.3 1.7
Right-of-use assets 10 7.9 8.1
Deferred tax assets 38.2 42.8
204.8 196.5
Current assets
Inventories 123.4 119.6
Trade and other receivables 139.1 148.8
Current tax assets 3.6 2.1
Derivative financial instruments 11 0.2 0.3
Cash and cash equivalents 12 34.2 9.3
300.5 280.1
Total assets 505.3 476.6
Current liabilities
Trade and other payables 228.0 220.1
Borrowings 11 69.8 67.4
Lease liabilities 11 3.7 3.1
Derivative financial instruments 11 0.4 0.4
Current tax liabilities 7.2 12.9
Provisions 14 2.7 2.2
311.8 306.1
Non-current liabilities
Borrowings 11 61.3 65.0
Lease liabilities 11 4.6 5.3
Derivative financial instruments 11 0.1 -
Pensions and other post-employment benefits 13 24.9 29.4
Provisions 14 1.6 1.4
Deferred tax liabilities 6.7 6.0
99.2 107.1
Total liabilities 411.0 413.2
Net assets 94.3 63.4
Equity
Issued share capital 16 17.4 17.4
Share premium account 68.6 68.6
Other reserves 75.8 76.3
Accumulated losses (67.5) (98.9)
Total equity 94.3 63.4
Consolidated Cash Flow Statement
Year ended 30 June 2025
2025 2024
Note £m £m
Operating activities
Profit before tax 49.0 46.5
Finance costs 11.2 17.8
Exceptional items excluding finance costs 4 4.0 0.8
Share-based payments charge 1.6 1.6
Depreciation of property, plant and equipment 10 15.8 16.3
Depreciation of right-of-use assets 10 3.9 3.7
Loss on disposal of property, plant and equipment 0.4 1.4
Amortisation of intangible assets 10 1.9 2.0
(Reversal of impairment)/impairment of property, plant and equipment (0.6) 0.2
Operating cash flow before changes in working capital and exceptional items 87.2 90.3
Decrease/(increase) in receivables 9.9 (5.2)
(Increase)/decrease in inventories (2.4) 0.6
Increase in payables 6.2 -
Operating cash flow after changes in working capital before exceptional items 100.9 85.7
Additional cash funding of pension scheme (7.0) (4.0)
Cash generated from operations before exceptional items 93.9 81.7
Cash outflow in respect of exceptional items (3.2) (1.0)
Cash generated from operations 90.7 80.7
Interest paid (7.9) (10.9)
Refinancing costs paid (1.8) (5.5)
Taxation paid (17.9) (5.1)
Net cash generated from operating activities 63.1 59.2
Investing activities
Purchase of property, plant and equipment (20.0) (14.3)
Purchase of intangible assets (10.4) (5.3)
Settlement of derivatives used in net investment hedges 0.4 1.1
Net cash used in investing activities (30.0) (18.5)
Financing activities
(Repayment)/drawdown of overdrafts 12 (9.8) 11.2
Drawdown of other loans 12 11.5 7.4
Repayment of bank loans 12 (65.0) (44.5)
Drawdown of bank loans 12 61.1 -
Repayment of IFRS 16 lease obligations 12 (4.2) (4.5)
Purchase of own shares (2.4) (2.8)
Net cash used in financing activities (8.8) (33.2)
Increase in net cash and cash equivalents 24.3 7.5
Net cash and cash equivalents at the start of the year 9.3 1.6
Currency translation differences 0.6 0.2
Net cash and cash equivalents at the end of the year 34.2 9.3
Consolidated Statement of Changes in Equity
Year ended 30 June 2025
Other reserves
Issued Share Cash flow Currency Capital Accumulated Total
share premium hedge translation redemption losses equity
capital account reserve reserve reserve £m £m
£m £m £m £m £m
At 1 July 2024 17.4 68.6 0.2 (1.1) 77.2 (98.9) 63.4
Profit for the year - - - - - 33.2 33.2
Other comprehensive income/(expense)
Items that may be reclassified to profit or loss:
Currency translation differences of foreign subsidiaries
- - - 0.8 - - 0.8
Gain on net investment hedges - - - 0.1 - - 0.1
Loss on cash flow hedges in the year - - (0.6) - - - (0.6)
Cash flow hedges transferred to profit or loss - - (0.6) - - - (0.6)
Taxation relating to the items above - - (0.2) - - - (0.2)
- - (1.4) 0.9 - - (0.5)
Items that will not be reclassified to profit or loss:
Net actuarial loss on post‑employment benefits - - - - - (1.2) (1.2)
Taxation relating to the items above - - - - - 0.3 0.3
- - - - - (0.9) (0.9)
Total other comprehensive (expense)/income - - (1.4) 0.9 - (0.9) (1.4)
Total comprehensive (expense)/income - - (1.4) 0.9 - 32.3 31.8
Transactions with owners of the parent
Purchase of own shares - - - - - (2.4) (2.4)
Share-based payments - - - - - 1.6 1.6
Taxation relating to the items above - - - - - (0.1) (0.1)
At 30 June 2025 17.4 68.6 (1.2) (0.2) 77.2 (67.5) 94.3
Other reserves
Issued Share Cash flow Currency Capital Accumulated Total
share premium hedge translation redemption losses equity
capital account reserve reserve reserve £m £m
£m £m £m £m £m
At 1 July 2023 17.4 68.6 3.7 (2.0) 77.2 (127.8) 37.1
Profit for the year - - - - - 33.3 33.3
Other comprehensive income/(expense)
Items that may be reclassified to profit or loss:
Currency translation differences of foreign subsidiaries
- - - 0.1 - - 0.1
Gain on net investment hedges - - - 0.8 - - 0.8
Loss on cash flow hedges in the year - - (1.3) - - - (1.3)
Cash flow hedges transferred to profit or loss - - (1.6) - - - (1.6)
Taxation relating to the items above - - (0.6) - - - (0.6)
- - (3.5) 0.9 - - (2.6)
Items that will not be reclassified to profit or loss:
Net actuarial loss on post‑employment benefits - - - - - (5.6) (5.6)
Taxation relating to the items above - - - - - 1.3 1.3
- - - - - (4.3) (4.3)
Total other comprehensive (expense)/income - - (3.5) 0.9 - (4.3) (6.9)
Total comprehensive (expense)/income - - (3.5) 0.9 - 29.0 26.4
Transactions with owners of the parent
Purchase of own shares - - - - - (2.8) (2.8)
Share-based payments - - - - - 1.6 1.6
Taxation relating to the items above - - - - - 1.1 1.1
At 30 June 2024 17.4 68.6 0.2 (1.1) 77.2 (98.9) 63.4
At 30 June 2025, the accumulated losses include a deduction of £4.2 million
(2024: £3.2m) for the cost of own shares held in relation to employee share
schemes.
Notes to the Consolidated Financial Information
1. Corporate information
McBride plc (the 'Company') is a public company limited by shares incorporated
and domiciled in the United Kingdom and registered in England and Wales. The
Company's ordinary shares are listed on the London Stock Exchange. The
registered office of the Company is Middleton Way, Middleton, Manchester M24
4DP. For the purposes of DTR 6.4.2R, the Home State of McBride plc is the
United Kingdom.
The Company and its subsidiaries (together, the 'Group') is Europe's leading
manufacturer and supplier of private label and contract manufactured products
for the domestic household and professional cleaning/hygiene markets. The
Company develops and manufactures products for retailers and brand owners in
Europe and the Asia-Pacific region.
2. Material accounting policies
Basis of preparation
The financial information does not constitute statutory accounts of the Group
for the years ended 30 June 2025 and 2024 within the meaning of sections
434(3) and 435(3) of the Companies Act 2006 or contain sufficient information
to comply with the disclosure requirements of IFRS. The financial information
for 2024 is derived from the statutory accounts for 2024 which have been
delivered to the Registrar of Companies.
The statutory accounts for the year ended 30 June 2025 have been reported on
by the Company's auditors, PricewaterhouseCoopers LLP, and will be delivered
to the Registrar of Companies in due course. The auditors have reported on
those statutory accounts; their report was (i) unqualified, (ii) did not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying their report and (iii) did not contain a
statement under Section 498 (2) or (3) of the Companies Act 2006.
The financial information has been prepared on the going concern basis in
accordance with UK-adopted International Financial Reporting Standards and
with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards. The financial statements have been prepared
under the historical cost convention, modified in respect of the revaluation
to fair value of financial assets and liabilities (derivative financial
instruments) at fair value through profit or loss, assets held for sale and
defined benefit pension scheme assets. The financial information has been
prepared applying accounting policies that were applied in the preparation of
the Company's published consolidated financial statements for the year ended
30 June 2024.
Going concern
The Group's base case forecasts are based on the Board-approved budget and
three-year plan. They indicate sufficient liquidity, debt cover and interest
cover throughout the going concern review period to ensure compliance with
current banking covenants. The Group's base case scenario assumes:
· average revenue growth of c.4% per annum, driven predominantly by
volume increases;
· raw material input costs growing at levels consistent with expected
revenue growth;
· interest rates reducing in line with current market expectations; and
· a Sterling to Euro exchange rate of £1:€1.20.
The Directors have considered the Group's principal risks with the highest
likelihood of occurrence or the severest impact, and the adverse effect this
would have on the Group's financial forecasts. Changing market, customer and
consumer dynamics could adversely impact revenue growth. Lack of supply chain
resilience influences raw material and packaging input costs. Economic,
political and macro environment instability potentially affects both revenue
growth and input costs, in addition to market interest rates and foreign
exchange rates. Considering these risks, a severe but plausible downside
scenario to stress test the Group's financial forecasts has been modelled,
with the following assumptions:
· a 5% year-on-year reduction in revenue in 2026;
· revenue growth reducing to 1% in 2027 and 2028, being half of the
Group's long-term target of 2%;
· an increase in raw material and packaging input costs compared to
latest forecasts;
· interest rates increasing by 100 basis points; and
· Sterling appreciating significantly against the Euro to £1:€1.25.
In the event that such a severe but plausible downside risk scenario occurs,
the Group would remain compliant with current banking covenants.
After reviewing the current liquidity position and financial forecasts, stress
testing for potential risks and considering the uncertainties described above,
and based on the currently committed funding facilities, the Directors have a
reasonable expectation that the Group has sufficient resources to continue in
operational existence and without significant curtailment of operations for
the foreseeable future. For these reasons the Directors continue to adopt the
going concern basis of accounting in preparing the Group financial statements.
Viability statement
In accordance with the requirements of the UK Corporate Governance Code 2018,
the Directors have performed a robust assessment of the principal risks facing
the Group, including those that would threaten its business model, future
performance, solvency or liquidity. The Board has determined that a three-year
period to 30 June 2028 constitutes an appropriate period over which to provide
its viability statement. The strategic plan under our Compass strategy is
based on detailed action plans developed by the Group with specific
initiatives and accountabilities; there is inherently less certainty in the
projections for years four and five.
The Group has a €200 million multi‑currency, sustainability-linked RCF,
with a tenor to November 2028, as well as an uncommitted €75 million
accordion feature and a number of facilities whereby it could borrow against
certain of its trade receivables: in the UK, a £20 million facility,
committed until May 2026; in Spain, France and Belgium, an unlimited facility
committed until May 2026; in Germany and Denmark, a €45 million facility,
committed until May 2026; and in Italy, a €23 million facility, committed
until April 2028. The Group can borrow from the provider of the relevant
facility up to the lower of the facility limit and the value of the qualifying
receivables.
The Group's strategic plan assumes that financing facilities will be available
on an appropriate basis and as required to meet the Group's capital investment
and growth strategies for the entire viability period.
In assessing the Group's viability, the Directors have considered the current
financial position of the Group and its principal risks and uncertainties. The
analysis considers a severe but plausible downside scenario, featuring the
principal risks from a financial and operational perspective, with the
resulting impact on key metrics, such as liquidity headroom and covenants. The
downside risk scenario assumes sensitivity around exchange rates and interest
rates, along with significant reductions in revenue and cash flow over the
three-year period. The Group's global footprint, product diversification and
access to external financing all provide resilience against these factors and
the other principal risks to which the Group is exposed.
Whilst the Group ends the year with net current liabilities of £11.3 million
(2024: £26.0m), the Directors conclude that the Group has access to
sufficient financing facilities in order to support this position.
After conducting their viability review, the Directors confirm that they have
a reasonable expectation that the Group will be able to continue in operation
and meet its liabilities as they fall due over the three‑year period of
their assessment to 30 June 2028.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of the consolidated financial statements from which this
preliminary announcement is derived requires management to make judgements,
estimates and assumptions that affect the application of accounting policies
and the reported assets, liabilities, income and expenses. Actual results may
differ from these estimates. The significant judgements made by management in
applying the Group's accounting policies and the key sources of estimation
uncertainty were the same as those applied to the consolidated financial
statements for the year ended 30 June 2024.
3. Segment information
Segmental reporting
Financial information is presented to the Board by business division for the
purposes of allocating resources within the Group and assessing the
performance of the Group. There are five separately managed and accountable
business divisions. The European business is managed as four divisions based
on product technology and the Asia Pacific division is based on geography:
· Liquids;
· Unit Dosing;
· Powders;
· Aerosols; and
· Asia Pacific.
Intra-group revenue from the sale of products is agreed between the relevant
customer-facing units and eliminated in the segmental presentation that is
presented to the Board and therefore excluded from the reported figures. Most
overhead costs are directly attributed within the respective divisions' income
statements. Central overheads are allocated to a reportable segment
proportionally using an appropriate cost driver and include costs of certain
Group functions (mostly associated with financial disciplines such as
treasury). Corporate costs include the costs associated with the Board and the
Executive Leadership Team, governance and being a listed company. Exceptional
items are detailed in note 4 and are not allocated to the reportable segments
as this reflects how they are reported to the Board. Finance expense and
income are not allocated to the reportable segments, as the Group Treasury
function manages this activity, together with the overall net debt position of
the Group.
The Board uses adjusted operating profit to measure the profitability of the
Group's businesses. Adjusted operating profit is, therefore, the measure of
segment profit presented in the Group's segment disclosures. Adjusted
operating profit represents operating profit before specific items that are
considered to hinder comparison of the trading performance of the Group's
businesses either year on year or with other businesses. During the years
under review, the items excluded from operating profit in arriving at adjusted
operating profit were the amortisation of intangible assets and exceptional
items.
Liquids Unit Dosing Powders Aerosols Asia Pacific Corporate Group
Year ended 30 June 2025 £m £m £m £m £m £m £m
Revenue 529.6 228.9 85.5 58.9 23.6 - 926.5
Adjusted operating profit/(loss) 41.0 22.5 6.8 3.1 1.1 (8.4) 66.1
Amortisation of intangible assets (1.9)
Exceptional items (note 4) (4.0)
Operating profit 60.2
Finance costs (note 6) (11.2)
Profit before taxation 49.0
Inventories 58.0 37.5 13.6 11.6 2.7 - 123.4
Capital expenditure 14.6 10.8 1.9 2.6 0.8 - 30.7
Amortisation and depreciation 11.4 7.0 1.3 0.5 1.4 - 21.6
Liquids Unit Dosing Powders Aerosols Asia Pacific Corporate Group
Year ended 30 June 2024 £m £m £m £m £m £m £m
Revenue 532.8 233.6 92.8 50.9 24.7 - 934.8
Adjusted operating profit/(loss) 45.6 19.4 6.0 2.1 1.4 (7.4) 67.1
Amortisation of intangible assets (2.0)
Exceptional items (note 4) (0.8)
Operating profit 64.3
Finance costs (note 6) (17.8)
Profit before taxation 46.5
Inventories 61.2 31.3 14.1 10.3 2.7 - 119.6
Capital expenditure 10.3 7.7 2.0 0.6 0.3 - 20.9
Amortisation and depreciation 12.8 5.8 1.4 0.6 1.4 - 22.0
Geographical information
Revenue Non-current assets
2025 2024 2025 2024
£m £m £m £m
United Kingdom 179.8 194.4 47.5 36.8
Germany 217.2 212.4 - -
France 203.7 201.5 10.9 9.8
Italy 74.1 78.4 14.8 14.4
Spain 44.7 41.2 9.8 9.5
Other Europe 180.1 177.5 80.2 77.6
Asia Pacific 24.7 25.4 3.1 3.9
Rest of the World 2.2 4.0 - -
Total 926.5 934.8 166.3 152.0
The geographical revenue information above is based on the location of the
customer.
Non-current assets for this purpose consists of goodwill, other intangible
assets, property, plant and equipment and right-of-use assets.
Revenue by major customer
In 2025 and 2024, no individual customer provided more than 10% of the Group's
revenue. During 2025, the top ten customers accounted for 53% of total Group
revenue (2024: 52%).
4. Exceptional items
Analysis of exceptional items
2025 2024
£m £m
Environmental remediation 0.4 0.8
Organisation changes 1.5 -
Group-wide strategic review 2.1 -
Total charged to operating profit 4.0 0.8
Group refinancing:
Independent business review and refinancing costs - 3.8
Total charged to finance costs - 3.8
Total exceptional items before tax 4.0 4.6
Total exceptional items of £4.0 million were recorded during the year (2024:
£4.6m). The charge comprised the following:
· £0.4 million costs relating to the re-evaluation of the environmental
remediation provision;
· £1.5 million employee severance costs in relation to organisational
changes aimed at enhancing long-term operational efficiency and capability in
line with the Group's strategy; and
· £2.1 million costs relating to a Group-wide strategic review of growth
options.
5. Operating profit
Operating profit is stated after charging/(crediting):
2025 2024
£m £m
Cost of inventories (included in cost of sales)* 515.2 519.9
Employee costs 162.8 157.2
Amortisation of intangible assets (note 10) 1.9 2.0
Depreciation of property, plant and equipment (note 10) 15.8 16.3
Depreciation of right-of-use assets (note 10) 3.9 3.7
Loss on disposal of property, plant and equipment 0.4 1.4
(Reversal of impairment)/impairment:
Property, plant and equipment (note 10) (0.6) 0.2
Inventories 2.4 8.9
Trade receivables 0.4 1.6
Expense relating to short-term leases 0.2 0.2
Expense relating to low-value leases 0.1 0.1
Research and development costs not capitalised 9.8 10.0
Net foreign exchange (gain)/loss (0.1) 0.5
(*)Direct material costs only.
6. Finance costs
2025 2024
£m £m
Finance costs
Interest on bank loans and overdrafts 8.3 10.5
Interest on lease liabilities 0.4 0.3
Net foreign exchange (gain)/loss (0.4) 0.7
Amortisation of facility fees 1.0 0.5
Non-utilisation and other fees 0.7 0.8
Adjusted finance costs excluding net interest cost on defined benefit 10.0 12.8
obligation
Post-employment benefits:
Net interest cost on defined benefit obligation (note 13) 1.2 1.2
Adjusted finance costs 11.2 14.0
Costs associated with independent business review and refinancing (note 4) - 3.8
Total finance costs 11.2 17.8
Interest rate caps are used to manage the interest rate profile of the Group's
borrowings. Accordingly, interest income from interest rate caps of £0.2
million (2024: £1.6m) is included in interest on bank loans and overdrafts.
No interest costs were capitalised in the current year (2024: £nil).
7. Taxation
Income tax expense
2025 2024
Total attributable to ordinary UK Overseas Total UK Overseas Total
shareholders £m £m £m £m £m £m
Current tax expense/(credit)
Current year 0.4 10.2 10.6 0.4 12.0 12.4
Adjustment for prior years - (0.1) (0.1) - (0.8) (0.8)
0.4 10.1 10.5 0.4 11.2 11.6
Deferred tax expense/(credit)
Origination and reversal of temporary differences
1.4 1.1 2.5 1.0 (0.3) 0.7
Adjustment for prior years 2.2 0.6 2.8 0.7 0.2 0.9
3.6 1.7 5.3 1.7 (0.1) 1.6
Income tax expense 4.0 11.8 15.8 2.1 11.1 13.2
Included in the current tax adjustment for the prior year is £nil (2024:
£0.5m charge) and £0.5 million credit (2024: £0.2m credit) relating to the
release of provisions for uncertain tax treatments due to expiries in the
statute of limitations.
Reconciliation to UK statutory tax rate
The total tax charge on the Group's profit before tax for the year is higher
(2024: higher) than the amount that would be charged at the UK standard rate
of corporation tax for the following reasons:
2025 2024
Total attributable to ordinary shareholders £m £m
Profit before tax 49.0 46.5
Profit before tax multiplied by the UK corporation tax rate of 25.0% (2024: 12.3 11.6
25.0%)
Effect of tax rates in foreign jurisdictions 0.5 0.3
Non-deductible expenses 0.2 0.5
Other differences 0.1 0.7
Adjustment for prior years 2.7 0.1
Total tax charge in profit or loss 15.8 13.2
Exclude adjusting items (note 19) 1.5 1.6
Total tax charge in profit or loss before adjusting items 17.3 14.8
The taxation is provided at current rates on the profits earned for the year.
There have been no changes in applicable tax rates that have impacted the
current year tax charge.
The main rate of UK corporation tax applicable for the financial year is 25.0%
(2024: 25.0%).
8. Earnings per ordinary share
Basic earnings per ordinary share is calculated by dividing the profit for the
year attributable to owners of the Company by the weighted average number of
the Company's ordinary shares in issue during the financial year.
The weighted average number of the Company's ordinary shares in issue
excludes 3,587,465 shares (2024: 1,372,779 shares), being the weighted average
number of own shares held during the year in relation to employee share
schemes.
Reference 2025 2024
Weighted average number of ordinary shares in issue (million) a 170.5 172.7
Effect of dilutive share options (million) 8.0 4.2
Weighted average number of ordinary shares for calculating diluted earnings b 178.5 176.9
per share (million)
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue assuming the conversion of all potentially
dilutive ordinary shares. Where potentially dilutive ordinary shares would
cause an increase in earnings per share, or a decrease in loss per share, the
diluted loss per share is considered equal to the basic loss per share.
During the year, the Company had equity-settled awards with a nil exercise
price that are potentially dilutive ordinary shares.
Adjusted earnings per share measures are calculated based on profit for the
year attributable to owners of the Company before adjusting items as follows:
2025 2024
Reference £m £m
Profit for calculating basic and diluted earnings per share c 33.2 33.3
Adjusted for:
Amortisation of intangible assets (note 10) 1.9 2.0
Exceptional items (note 4) 4.0 4.6
Taxation relating to the items above (1.5) (1.6)
Profit for calculating adjusted earnings per share d 37.6 38.3
2025 2024
Reference pence pence
Basic earnings per share c/a 19.5 19.3
Diluted earnings per share c/b 18.6 18.8
Adjusted basic earnings per share d/a 22.1 22.2
Adjusted diluted earnings per share d/b 21.1 21.7
9. Payments to shareholders
Dividends paid and received are included in the Company financial statements
in the year in which the related dividends are actually paid or received or,
in respect of the Company's final dividend for the year, approved by
shareholders.
It is the Board's intention that any future dividends will be final dividends
paid annually in cash, not by the allotment and issue of B Shares.
Consequently, the Board is not seeking shareholder approval at the 2025 AGM to
capitalise reserves for the purposes of issuing B Shares or to grant Directors
the authority to allot such shares. Existing B Shares will continue to be
redeemable but limited to one redemption date in November of each year.
Further details of how to redeem existing B Shares in November 2025 will be
announced in due course. B Shares issued but not redeemed are classified as
current liabilities.
As outlined in the RNS dated 29 November 2024, as a result of the refinancing
of the Company's RCF the block on shareholder distributions has now been
removed, permitting the Company to restore the payment of dividends and
consider share buy-backs. The Board is recommending a final dividend of 3.0
pence per ordinary share for the year ended 30 June 2025. This is subject to
approval by shareholders at the Company's 2025 AGM and has therefore not been
recognised in these financial statements. If approved, the recommended final
dividend will be paid as a cash dividend on 28 November 2025 to all holders of
ordinary shares who are on the register of members at 5.00pm on 31 October
2025. The ordinary shares will be marked as ex-dividend at 5.00pm on 30
October 2025.
Other than the final dividend proposed above, no payments to ordinary
shareholders were made or proposed in respect of this year or the prior year.
During the year to 30 June 2025, the Directors became aware that certain
dividends paid in November 2022 to November 2024 to holders of B Shares
totalling £47,710.90 had been made, and certain loans paid in November 2023
to October 2024 to Apex Group Fiduciary Services Limited, in its capacity as
trustee of the McBride plc Employee Benefit Trust (the 'Trustee'), totalling
£5,100,339.38 may have been made, in each case otherwise than in accordance
with the Companies Act 2006 in so far as they were made without the Company
holding sufficient distributable reserves and without interim accounts having
been filed at Companies House prior to payment and/or, in the case of such,
where they resulted in a negative reduction on the Company's net assets. A
resolution to release the holders of B Shares, the Trustee and the Directors
and relevant former Directors of the Company in relation to such dividends and
loans will be put to shareholders for approval at the 2025 AGM. Full details
of the resolution are included in the Notice of AGM.
In April 2025, the Company received a dividend of £40.0 million from a
subsidiary, thereby increasing the Company's distributable reserves to
sufficient levels to support the Company's anticipated future distributions in
the course of the 2025 calendar year. Further procedures have been put in
place to ensure the Company's reserves are sufficient for relevant dividends
to be paid and loans to be made in the future. These include reviewing the
Company's anticipated upcoming distributable reserve requirements,
establishing a process for paying dividends up to the Company to ensure the
Company has sufficient distributable reserves for its requirements, checking
the Company has sufficient distributable reserves before paying a dividend or
making a loan, and updating the Audit and Risk Committee on the Company's
distributable reserves at set intervals.
Movements in the number of B Shares outstanding were as follows:
Nominal
Number value
000 £'000
Issued and fully paid
At 1 July 2023, 30 June 2024 and 30 June 2025 665,888 666
B Shares carry no rights to attend, speak or vote at Company meetings, except
on a resolution relating to the winding up of the Company.
10. Intangible assets, property, plant and equipment and right-of-use assets
Goodwill
and other Property,
intangible plant and Right-of-use
assets equipment assets
£m £m £m
Net book value at 1 July 2024 29.5 114.4 8.1
Currency translation differences 0.1 1.2 0.1
Additions 10.4 20.3 3.6
Disposal of assets - (0.4) -
Reversal of impairment - 0.6 -
Depreciation charge - (15.8) (3.9)
Amortisation charge (1.9) - -
Net book value at 30 June 2025 38.1 120.3 7.9
Included within goodwill and other intangible assets is goodwill of £19.8
million (2024: £19.7m), computer software of £2.9 million (2024: £3.5m*)
and customer relationships of £0.1 million (2024: £0.5m*).
Capital commitments at 30 June 2025 amounted to £3.6 million (2024: £5.7m).
At 30 June 2025, the Group was committed to future minimum lease payments of
£0.5 million (2024: £0.3m) in respect of leases which have not yet commenced
and for which no lease liability has been recognised.
(*)Prior years restated to eliminate historical adjustments no longer required
and to transfer assets to correct asset category.
11. Financial risk management
The Group's activities expose it to a variety of financial risks: market risk
(including currency risk, fair value interest rate risk, cash flow interest
rate risk and price risk), credit risk and liquidity risk.
There have been no material changes in the Group's risk management policies in
either the 30 June 2025 or 30 June 2024 financial years.
The table below analyses financial instruments carried at fair value, by
valuation method. The different levels have been defined as follows:
· Level 1 - unadjusted quoted prices in active markets for identical
assets or liabilities
· Level 2 - inputs other than Level 1 that are observable for the asset
or liability, either directly (prices) or indirectly (derived from prices);
and
· Level 3 - inputs that are not based on observable market data
(unobservable inputs).
At At
30 June 30 June
2025 2024
£m £m
Level 2 assets
Derivative financial instruments
Forward currency contracts 0.2 -
Interest rate caps 0.3 2.0
Total financial assets 0.5 2.0
Level 2 liabilities
Derivative financial instruments
Forward currency contracts (0.4) (0.4)
Interest rate collars (0.1) -
Total financial liabilities (0.5) (0.4)
Total - 1.6
Derivative financial instruments
Derivative financial instruments comprise the foreign currency derivatives and
interest rate derivatives that are held by the Group in designated hedging
relationships.
Foreign currency forward contracts are measured by reference to prevailing
forward exchange rates. Foreign currency options are measured using a variant
of the Monte Carlo valuation model. Interest rate caps are measured by
discounting the related cash flows using yield curves derived from prevailing
market interest rates.
Valuation levels and techniques
There were no transfers between levels during the year and no changes in
valuation techniques.
Financial assets and liabilities measured at amortised cost
The fair value of borrowings (including overdrafts and lease liabilities) are
as follows:
At At
30 June 30 June
2025 2024
£m £m
Current 73.5 70.5
Non-current 65.9 70.3
Total borrowings 139.4 140.8
The fair value of the following financial assets and liabilities approximate
to their carrying amount:
· trade and other receivables;
· other current financial assets;
· cash and cash equivalents; and
· trade and other payables.
12. Net debt
Movements in net debt were as follows:
IFRS 16 Currency
At 1 July non-cash Cash translation At 30 June
2024 movements((1)) flows differences 2025
£m £m £m £m £m
Overdrafts (11.8) - 9.8 - (2.0)
Bank loans (65.0) - 3.9 (0.2) (61.3)
Other loans (55.6) - (11.5) (0.7) (67.8)
Lease liabilities (8.4) (4.0) 4.2 (0.1) (8.3)
Financial liabilities (140.8) (4.0) 6.4 (1.0) (139.4)
Cash and cash equivalents 9.3 - 24.3 0.6 34.2
Net debt (131.5) (4.0) 30.7 (0.4) (105.2)
(1)IFRS 16 non-cash movements includes additions of £3.6 million, disposals
of £nil and interest charged of £0.4 million.
13. Pensions and other post-employment benefits
The Group provides a number of post-employment benefit arrangements. In the
UK, the Group operates a closed defined benefit pension scheme and a defined
contribution pension scheme. Elsewhere in Europe, the Group has a number of
smaller post-employment benefit arrangements that are structured to accord
with local conditions and practices in the countries concerned. The Group also
recognises the assets and liabilities for all members of the defined
contribution scheme in Belgium, accounting for the whole defined contribution
section as a defined benefit scheme under IAS 19, 'Employee Benefits', as
there is a risk the underpin will require the Group to pay further
contributions to the scheme.
At 30 June 2025, the Group recognised a deficit on its UK defined benefit
pension scheme of £23.0 million (2024: £27.5m). The Group's net
post-employment benefit obligations outside the UK amounted to £1.9 million
(2024: £1.9m).
Non-governmental collected post-employment benefits had the following effect
on the Group's results and financial position:
2025 2024
£m £m
Profit or loss
Operating profit
Defined contribution schemes
Contributions payable (3.4) (3.0)
Defined benefit schemes
Service cost and administration expenses (net of employee contribution) (0.3) (0.6)
Net charge to operating profit (3.7) (3.6)
Finance costs
Net interest cost on defined benefit obligation (1.2) (1.2)
Net charge to profit before taxation (4.9) (4.8)
Other comprehensive income/(expense)
Defined benefit schemes
Net actuarial loss (1.2) (5.6)
2025 2024
£m £m
Balance sheet
Defined benefit obligations
UK - funded (97.8) (101.6)
Other - unfunded (11.0) (12.0)
(108.8) (113.6)
Fair value of scheme assets
UK - funded 74.8 74.1
Other - unfunded 9.1 10.1
Deficit on the schemes (24.9) (29.4)
For accounting purposes, the UK scheme's benefit obligation as at 30 June 2025
has been calculated based on data gathered for the 2024 triennial actuarial
valuation and by applying assumptions made by the Company on the advice of an
independent actuary in accordance with IAS 19, 'Employee Benefits', which
differ in certain respects from the assumptions made by the Trustee for the
purpose of the actuarial valuation.
Impact of NTL vs Virgin Media case, 25 July 2024
In June 2023, the High Court judged that amendments made to the Virgin Media
scheme were invalid because the scheme's actuary did not provide the
associated Section 37 certificate. The High Court's decision has wide-ranging
implications, affecting other schemes that were contracted out on a
salary-related basis and made amendments between April 1997 and April 2016.
The Fund was contracted out until 29 February 2016 and amendments were made
during the relevant period. As such, the ruling could have implications for
the Company. Following the Court of Appeal upholding the 2023 High Court
ruling on 25 July 2024, the Trustee initiated the process of investigating any
potential impact for the Fund.
In June 2025, the Department for Work and Pensions (DWP) confirmed that the
Government will introduce legislation to give affected pension schemes the
ability to retrospectively obtain written actuarial confirmation that
historical benefit changes met the necessary standards. Further detail on the
approach and process for this retrospective confirmation is expected to follow
in due course. The Company is therefore disclosing this issue as a potential
contingent liability at 30 June 2025 and will review again based on the
findings of the detailed investigation and further legislation updates.
Following the DWP's announcement, the Group and the Trustee do not expect the
Virgin Media ruling to give rise to any additional liabilities.
14. Provisions
Reorganisation Independent
and Leasehold Environmental business
restructuring dilapidations remediation review Claims Total
£m £m £m £m £m £m
At 1 July 2023 0.3 1.9 3.0 0.1 - 5.3
(Released)/charged to profit or loss - (0.1) 0.8 3.8 - 4.5
Currency translation differences - - (0.2) - - (0.2)
Utilisation - (1.3) (0.8) (3.9) - (6.0)
At 30 June 2024 0.3 0.5 2.8 - - 3.6
Transfer from other payables* - - - - 0.6 0.6
Charged/(released) to profit or loss 0.2 (0.1) 0.4 - 0.2 0.7
Currency translation differences (0.1) - - - - (0.1)
Utilisation - (0.1) (0.4) - - (0.5)
At 30 June 2025 0.4 0.3 2.8 - 0.8 4.3
Analysis of provisions:
2025 2024
£m £m
Current 2.7 2.2
Non-current 1.6 1.4
Total 4.3 3.6
(*)Transfer of claims held in other payables to provisions.
The closing provision for reorganisation and restructuring relates to the
Group's logistics Transformation programme and strategic organisational
changes, aimed at enhancing long-term operational efficiency and capability
led by the Human Resources department. The provision is expected to be fully
utilised within twelve months of the balance sheet date.
The leasehold dilapidations provision relates to costs expected to be incurred
to restore leased properties to their original condition at the end of the
respective lease terms. A provision has been recognised for the present value
of the estimated expenditure required to undertake restoration works. Amounts
will be utilised as the respective leases end and restoration works are
carried out, within a period of approximately twelve months.
The environmental remediation provision relates to historical environmental
contamination at a site in Belgium. The additional costs in the year of £0.4
million relate to a re-evaluation of the cost of environmental remediation.
The closing provision is expected to be utilised as the land is restored
within a period of approximately nine years, with £1.8 million expected to be
utilised within twelve months.
The independent business review provision related to the amendment of the
Group's revolving credit facility and banking covenants. The provision for
consultancy support for the independent business review programme was utilised
in the prior year.
The claims provision relates to expected costs associated with outstanding
legal and regulatory claims. The closing balance is expected to be utilised
within twelve months.
The amount and timing of all cash flows related to the provisions are
reasonably certain.
15. Exchange rates
The principal exchange rates used to translate the results, assets and
liabilities and cash flows of the Group's foreign operations into Sterling
were as follows:
Average rate Closing rate
2025 2024 2025 2024
Euro 1.19 1.16 1.17 1.18
US Dollar 1.29 1.26 1.37 1.26
Danish Krone 8.88 8.68 8.72 8.81
Polish Zloty 5.07 5.11 4.96 5.09
Czech Koruna 29.88 28.72 28.93 29.57
Hungarian Forint 479.05 449.75 467.33 466.81
Malaysian Ringgit 5.70 5.91 5.77 5.97
Australian Dollar 2.00 1.92 2.10 1.90
16. Share capital
Authorised, allotted and fully paid
Number £m
Ordinary shares of 10 pence each
At 1 July 2023, 30 June 2024 and 30 June 2025 174,057,328 17.4
Ordinary shares carry full voting rights and ordinary shareholders are
entitled to attend Company meetings and to receive payments to shareholders.
The above figure includes 42,041 treasury shares.
17. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties of the Company, have been eliminated on consolidation and therefore
are not required to be disclosed in these financial statements. Details of
transactions between the Group and other related parties are disclosed below.
Post-employment benefit plans
Contributions amounting to £10.4 million (2024: £7.0m) were payable by the
Group to pension schemes established for the benefit of its employees. At 30
June 2025, £0.6 million (2024: £0.5m) in respect of contributions due was
included in other payables.
Compensation of key management personnel
For the purposes of these disclosures, the Group regards its key management
personnel as the Directors and certain members of the senior executive team.
Compensation relating to key management personnel in respect of their services
to the Group was as follows:
2025 2024
£m £m
Short-term employee benefits 3.1 3.8
Post-employment benefits 0.1 0.1
Share-based payments 1.0 1.2
Total 4.2 5.1
18. Key performance indicators (KPIs)
Management uses a number of KPIs to measure the Group's performance and
progress against its strategic objectives. The most important of these are
noted and defined below:
Financial:
· Revenue: Revenue from contracts with customers from the sale of goods
is measured at the invoiced amount, net of sales rebates, discounts, value
added tax and other sales taxes.
· Adjusted operating profit: Adjusted operating profit is operating
profit excluding amortisation of intangible assets and exceptional items.
· Adjusted EBITDA margin: The calculation of adjusted EBITDA, which when
divided by revenue gives this EBITDA margin, is defined in note 19.
· Free cash flow increase: Free cash flow is defined as cash generated
before exceptional items.
· Adjusted ROCE: Total adjusted operating profit divided by the average
of opening and closing capital employed. Capital employed is defined as the
total of goodwill and other intangible assets, property, plant and equipment,
right-of-use assets, inventories, and trade and other receivables, less trade
and other payables.
· Transformation benefits: Net profit benefit achieved from the
implementation of the Transformation programmes.
Non-financial:
· Lost time incident frequency rate: The number of lost time incidents x
100,000 divided by total number of person-hours worked.
· Customer service level: The volume of products delivered in the correct
volumes and within requested timescales, as a percentage of total volumes
ordered by customers.
19. Alternative performance measures (APMs)
Introduction
The performance of the Group is assessed using a variety of adjusted measures
that are not defined under IFRS and are therefore termed non-GAAP measures.
The non-GAAP measures used are adjusted operating profit, adjusted EBITDA,
adjusted finance costs, adjusted profit before tax, adjusted profit for the
year, adjusted earnings per share, free cash flow and cash conversion %,
adjusted ROCE, liquidity, net debt, net debt cover ratio (banking basis) and
interest cover ratio (banking basis). The rationale for using these measures,
along with a reconciliation from the nearest measures prepared in accordance
with IFRS, are presented below. The alternative performance measures we use
may not be directly comparable with similarly titled measures used by other
companies.
Adjusted measures
Adjusted measures exclude specific items that are considered to hinder
comparison of the trading performance of the Group's businesses either year on
year or with other businesses. This presentation is consistent with the way
that financial performance is measured by management and reported to the Board
and Executive Committee, and is used for internal performance analysis and in
relation to employee incentive arrangements. The Directors present these
adjusted measures in the financial statements in order to assist investors in
their assessment of the trading performance of the Group. Directors do not
regard these measures as a substitute for, or superior to, the equivalent
measures calculated and presented in accordance with IFRS.
During the years under review, the items excluded from operating profit in
arriving at adjusted operating profit were the amortisation of intangible
assets and exceptional items. Exceptional items and amortisation are excluded
from adjusted operating profit because they are not considered to be
representative of the trading performance of the Group's businesses during the
year.
A reconciliation for each non-GAAP measure to the most directly comparable
IFRS measure is set out below.
Adjusted operating profit and adjusted EBITDA
Adjusted EBITDA means adjusted operating profit before depreciation. A
reconciliation between adjusted operating profit, adjusted EBITDA and the
Group's reported statutory operating profit is shown below:
2025 2024
£m £m
Operating profit 60.2 64.3
Exceptional items in operating profit (note 4) 4.0 0.8
Amortisation of intangibles (note 10) 1.9 2.0
Adjusted operating profit 66.1 67.1
Depreciation of property, plant and equipment (note 10) 15.8 16.3
Depreciation of right-of-use assets (note 10) 3.9 3.7
Adjusted EBITDA 85.8 87.1
Adjusted profit before tax and adjusted profit for the year
Adjusted profit before tax is based on adjusted operating profit less adjusted
finance costs. Adjusted profit for the year is based on adjusted profit before
tax less taxation relating to non-adjusting items. The table below reconciles
adjusted profit before tax to the Group's reported profit before tax.
2025 2024
£m £m
Profit before tax 49.0 46.5
Exceptional items (note 4) 4.0 4.6
Amortisation of intangibles (note 10) 1.9 2.0
Adjusted profit before tax 54.9 53.1
Taxation (note 7) (17.3) (14.8)
Adjusted profit for the year 37.6 38.3
Adjusted earnings per share
Adjusted earnings per share is based on the Group's profit for the year
adjusted for the items excluded from operating profit in arriving at adjusted
operating profit, and the tax relating to those items.
Free cash flow and cash conversion %
Free cash flow is one of the Group's KPIs by which our financial performance
is measured. It is primarily a liquidity measure; however free cash flow and
cash conversion % are also important indicators of overall operational
performance as they reflect the cash generated from operations. Free cash flow
is defined as cash generated before exceptional items. Cash conversion % is
defined as free cash flow as a percentage of adjusted EBITDA (applicable only
when adjusted EBITDA is positive). A reconciliation from net cash generated
from operating activities, the most directly comparable IFRS measure to free
cash flow, is set out as follows:
2025 2024
£m £m
Net cash generated from operating activities 63.1 59.2
Add back:
Taxation paid 17.9 5.1
Interest paid 7.9 10.9
Refinancing costs paid 1.8 3.8
Cash outflow in respect of exceptional items 3.2 2.7
Free cash flow 93.9 81.7
Adjusted EBITDA 85.8 87.1
Cash conversion % 109% 94%
Adjusted return on capital employed (ROCE)
Adjusted ROCE serves as an indicator of how efficiently we generate returns
from the capital invested in the business. It is a Group KPI that allows
management to evaluate the outcome of investment decisions. Adjusted ROCE is
defined as total adjusted operating profit divided by the average of opening
and closing capital employed. Capital employed is defined as the total of
goodwill and other intangible assets, property, plant and equipment,
right-of-use assets, inventories, trade and other receivables less trade and
other payables. There is no equivalent statutory measure within IFRS. Adjusted
ROCE is calculated as follows:
2025 2024 2023
£m £m £m
Goodwill (note 10) 19.8 19.7 19.7
Other intangible assets (note 10) 18.3 9.8 6.5
Property, plant and equipment (note 10) 120.3 114.4 117.8
Right-of-use assets (note 10) 7.9 8.1 8.5
Inventories 123.4 119.6 121.5
Trade and other receivables 139.1 148.8 145.7
Trade and other payables (228.0) (220.1) (219.6)
Capital employed 200.8 200.3 200.1
Average of opening and closing capital employed 200.6 200.2 209.4
Adjusted operating profit 66.1 67.1 13.5
Adjusted ROCE % 33.0% 33.5% 6.4%
Liquidity
Liquidity means, at any time, without double counting, the aggregate of:
(a) cash;
(b) cash equivalents;
(c) the available facility at that time, which comprises the headroom
available in the RCF and other committed facilities; and
(d) the aggregate amount available for drawing under uncommitted facilities.
The Company uses this measure to manage cash flow.
2025 2024
£m £m
Cash and cash equivalents 34.2 9.3
RCF headroom 107.2 82.9
Uncommitted facilities - 6.1
Liquidity 141.4 98.3
Net debt
Net debt consists of cash and cash equivalents, overdrafts, bank and other
loans and lease liabilities.
Net debt is a key indicator used by management to assess the Group's
indebtedness and overall balance sheet strength.
Net debt is an alternative performance measure as it is not defined in IFRS. A
reconciliation from loans and other borrowings, lease liabilities and cash and
cash equivalents, the most directly comparable IFRS measures to net debt is
set out below:
2025 2024
£m £m
Current assets
Cash and cash equivalents 34.2 9.3
Current liabilities
Borrowings (69.8) (67.4)
Lease liabilities (3.7) (3.1)
(73.5) (70.5)
Non-current liabilities
Borrowings (61.3) (65.0)
Lease liabilities (4.6) (5.3)
(65.9) (70.3)
Net debt (105.2) (131.5)
Net debt cover ratio (banking basis)
The net debt cover ratio (banking basis) is an indicator of the Company's
ability to repay its debts. Under the RCF, it is calculated as net debt (as
defined in the RCF agreement) divided by EBITDA (as defined in the RCF
agreement). The Company uses the ratio to ensure compliance with the RCF
financial covenants that will be tested half-yearly from December 2024.
2025 2024
£m £m
Net debt (as defined above) (105.2) (131.5)
Invoice discounting facilities 67.8 55.6
B Shares (note 9) (0.7) (0.7)
Lease liabilities 8.3 8.4
Adjustment for average exchange rates (0.8) (0.9)
Net debt banking basis (as defined in the RCF agreement) (30.6) (69.1)
Adjusted EBITDA 85.8 87.1
Net interest cost on defined benefit obligation (note 6) (1.2) (1.2)
Loss on disposal of property, plant and equipment (note 10) 0.4 1.4
Lease payments n/a* 4.5
EBITDA banking basis (as defined in the RCF agreement) 85.0 91.8
Net debt cover ratio (banking basis) 0.4x 0.8x
(*)Lease payments are no longer part of the definition following the
refinancing of the RCF in November 2024.
Interest cover ratio (banking basis)
The interest cover ratio (banking basis) is a measure of the Company's ability
to pay the interest on its outstanding debts. Under the RCF, it is calculated
as EBITDA (as defined in the RCF agreement) divided by adjusted finance costs
(excluding net interest cost on defined benefit obligation). The Company uses
the ratio to ensure compliance with the RCF financial covenants that will be
tested half-yearly from December 2024.
2025 2024
£m £m
EBITDA banking basis (as defined in the RCF agreement) 85.0 91.8
Lease payments n/a* (4.5)
EBITDA banking basis (as defined in the RCF agreement) 85.0 87.3
Adjusted finance costs excluding net interest cost on defined benefit 10.0 12.8
obligation (note 6)
Interest cover ratio (banking basis) 8.5x 6.8x
(*)Lease payments are no longer part of the definition following the
refinancing of the RCF in November 2024.
20. Additional information
Annual General Meeting
The Annual General Meeting will be held on 20 November 2025.
Annual Report and Accounts
The Annual Report and Accounts will be published on the McBride plc website by
no later than 10 October 2025. Reflecting McBride's commitment to the
environment, a small number of printed copies will be sent to shareholders in
October 2025, on a 'by request only' basis.
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