McBride, a manufacturer of cleaning products, has announced significant financial challenges and is seeking shareholder support. Below are the key points from their recent update.
- Shares of McBride have dropped significantly, now trading at 16.7p, down from 87.4p last year.
- The company’s borrowings have exceeded limits due to macroeconomic impacts.
- Shareholder approval is being sought to increase the company’s borrowing limit.
- McBride has seen inflation and supply chain issues, partly offset by price increases.
- The board has secured commitments from major shareholders to support the proposed borrowing limit increase.
McBride, a Manchester-based company specialising in private label and contract-manufactured cleaning products, is navigating considerable financial turbulence. The company has highlighted that macroeconomic factors have led to a significant increase in its borrowings, surpassing its current borrowing limits. McBride is now urging its shareholders to approve an increase in these limits.
Shares in McBride have experienced a steep decline. Currently trading at 16.7p each, they have fallen from 87.4p just a year ago. This sharp drop underscores the extent of the economic challenges the firm faces.
The company’s financial challenges stem from several factors. According to a recent statement, McBride has faced exceptional input cost inflation and supply chain disruptions, exacerbated by the ongoing Ukraine conflict. These issues have resulted in increased borrowings and reduced the value of the company’s adjusted capital and reserves.
Despite these challenges, McBride has managed to grow its revenue by 2.9% over the past year, primarily through pricing actions. This revenue growth, however, has not been enough to counterbalance the overall economic pressures on the company.
To address this, McBride’s board has sought shareholder approval to raise the borrowing limit. They have secured commitments from shareholders representing 58.4% of the company’s shares to vote in favour of this resolution. The directors unanimously recommend this course of action, considering it in the best interest of the company and its shareholders.
McBride is taking essential steps to navigate its financial challenges, seeking shareholder support to secure its future.