Trading Statement

McBride PLC 2 June 2000 McBride's Interim results for the six months to 31 December, 1999 showed an underlying increase in sales of 5.9% and profit before taxation, goodwill amortisation and share of the joint venture, increased by 8.5%. Sales and profits in January and February were in line with expectations but, in common with many other companies in the UK grocery sector, McBride experienced a slowdown in sales towards the end of March and throughout April. In addition, the Continental European profits have been adversely affected by the further decline in the Euro. Sales across the Group have recovered to forecast levels in May and expected sales for June are also in line with forecast. Sales of private label products continue to benefit from increasing market share. As a result of the slowdown in sales and the weak Euro referred to above, profit before tax, operating exceptional items and goodwill amortisation is expected to fall short of the £30.0 million for the 1998/1999 financial year and the Board is reviewing a number of opportunities to further reduce the cost base of the business. Aerosol Products Limited, the joint venture that was formed between Robert McBride and Nichol Beauty Products has continued to encounter operational difficulties following concentration of production onto a single site at Hull. The management structure of the business has been strengthened and the situation is improving. Although the joint venture will incur a loss in the second half of the financial year, the Board is confident that the strategic objectives in setting up the joint venture remain valid. The Board of McBride intends to review the Group's strategic options in order to maximise shareholder value. Contacts: Mike Handley, McBride plc 01494 607050 Terry Monks, McBride plc 01494 607050 Andrew Dowler, Financial Dynamics 020 7831 3113


Mcbride (MCB)
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