Download PDF

1. Company Snapshot

1.a. Company Description

McBride plc, together with its subsidiaries, manufactures and sells private label household and personal care products to retailers and brand owners in the United Kingdom, the Asia Pacific, rest of Europe, and internationally.It operates through five segments: Liquids, Powders, Unit dosing, Aerosols, and Asia Pacific.The Liquids segment offers laundry detergent, dishwasher liquids, surface cleaners, and bleach.


The Unit dosing segment provides auto dishwasher tablets, laundry capsules, and water softeners.The Powders segment offers laundry, auto dishwash, stain removers, water softeners, and powdered cleaning products.The Aerosols segment provides household, personal care, insecticides, sanitizers, and professional cleaning products.


The Asia Pacific segment offers shampoo, liquid soap, auto dishwasher tablets, and washing up liquids.The company also provides contract manufacturing services.The company offers products under the Surcare, Oven Pride, Clean N Fresh, and Hospec brands.


McBride plc was founded in 1927 and is based in Manchester, the United Kingdom.

Show Full description

1.b. Last Insights on MCB

McBride plc's recent performance was driven by a strong first half 2025 earnings release, with earnings per share (EPS) increasing to £0.11, up from £0.073 in the same period last year. Revenue remained flat at £471.4m. The company's resilience in a challenging economic environment, particularly in the UK, presents a unique opportunity for growth. Institutional investors' significant holdings in McBride, at 37%, imply their influence and confidence in the company's prospects. Additionally, the company's relative lack of exposure to international markets makes it an attractive option in a global economic landscape characterized by caution.

1.c. Company Highlights

2. McBride's Interim Results: Steady Performance Amidst Transformation

McBride's financial performance for the six months to December 31, 2025, was marked by steady revenue growth and margin maintenance, despite competitive pricing pressures and inflationary headwinds. Revenues increased by 0.8% to £475 million, with adjusted operating profit slightly down to £31.5 million. The company's EBITDA remained consistent with the previous year's first half. Earnings per share (EPS) was not explicitly stated, but the company's focus on margin management and cost control is evident. The current valuation metrics suggest a 'P/E Ratio' of 8.31 and an 'EV/EBITDA' of 4.75, indicating a relatively reasonable valuation.

Publication Date: Mar -09

📋 Highlights
  • Financial Performance Stability:: Group revenues rose 0.8% to £475 million, with adjusted EBITDA aligned with prior year, despite adjusted operating profit declining to £31.5 million.
  • Divisional Growth in Aerosols:: Aerosols achieved 14.6% volume growth and 18.1% revenue growth, nearing the 100 million cans target, with adjusted operating profit of £2.1 million.
  • Shareholder Returns:: £30 million allocated to returns, including £20 million share buyback, £6.4 million EBT, and £5.2 million dividends, alongside a 40% share price recovery year-to-date.
  • Transformation Milestone:: SAP S/4HANA implementation successfully launched in November 2025, with minimal disruption and enhanced operational efficiency driving margins.
  • Capital Allocation Strategy:: £14.8 million capital expenditure and £120.6 million net debt, balancing short-term returns with EUR 75 million unused accordion facility for future growth opportunities.

Divisional Performance

The divisional performance was mixed, with the Aerosols division delivering 15% higher volumes and the Asia Pacific division facing weaker-than-expected private label sales. The Unit Dosing division reported revenue of £116 million, with improved profitability due to production efficiencies and tight overhead cost control. The Powders division maintained a healthy return on sales despite softer private label demand. The company's transformation program, including the SAP S/4HANA project, has been progressing well, with the first go-live in November 2025.

Cash Flow and Capital Allocation

McBride generated £24 million in free cash flow during the period, with a net debt increase to £120.6 million despite returning nearly £30 million to shareholders through dividends, share buybacks, and EBT. The company's financial health and balance sheet provide flexibility to adapt to opportunities, with an unutilized EUR 75 million accordion facility. The 'Free Cash Flow Yield' of 12.82% is attractive, indicating a strong capacity for future returns.

Outlook and Strategy

The company's business momentum remains good, with private label demand expected to maintain its strong position. McBride is focused on driving efficiencies, enhancing insights, and better decision support through its transformation program. The company is also actively reviewing opportunities for non-organic growth, particularly in higher-margin categories, and aims to grow contract manufacturing to 25% of its business. As Chris Smith, CEO, mentioned, "we review our strategy and targets every year," indicating a commitment to adapting and course-correcting to meet medium-term ambitions.

Valuation and Estimates

Analysts estimate revenue growth at 2.0% for the next year. Given the current 'P/S Ratio' of 0.27, the valuation appears reasonable. The 'ROE' of 30.98% and 'ROIC' of 14.1% indicate strong profitability. With a 'Dividend Yield' of 2.07%, the stock offers a relatively attractive income stream. Overall, McBride's steady performance, transformation progress, and reasonable valuation make it an interesting prospect for investors.

3. NewsRoom

Card image cap

Oven Pride firm McBride sees ‘first signs’ of supply shortages due to Iran war

Apr -02

Source:

Card image cap

Waverly Advisors Acquires McBride Financial Advisors

Mar -17

Source:

Card image cap

McBride H1 Earnings Call Highlights

Feb -26

Source:

Card image cap

UK Penny Stock Spotlight: Foresight Group Holdings And 2 Other Promising Picks

Feb -19

Source:

Card image cap

Is There Now An Opportunity In McBride plc (LON:MCB)?

Feb -12

Source:

Card image cap

Global's Undervalued Small Caps With Insider Activity January 2026

Jan -26

Source:

Card image cap

3 UK Penny Stocks With Market Caps Under £300M

Jan -21

Source:

Card image cap

McBride plc (LON:MCB) Shares Could Be 39% Below Their Intrinsic Value Estimate

Jan -07

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.18%)

6. Segments

Liquids

Expected Growth: 4%

McBride plc's Liquids segment growth is driven by increasing demand for eco-friendly and sustainable packaging, expansion into emerging markets, and strategic partnerships with major consumer goods companies. Additionally, the segment benefits from the trend towards refill and reuse, as well as McBride's investments in innovative and efficient manufacturing technologies.

Unit Dosing

Expected Growth: 4.5%

McBride plc's Unit Dosing segment growth of 4.5% is driven by increasing demand for convenient and sustainable packaging solutions, expansion in emerging markets, and strategic partnerships with major consumer goods companies. Additionally, the segment benefits from the trend towards unit dose packaging in the healthcare and beauty industries, as well as the company's continued investment in innovation and operational efficiency.

Powders

Expected Growth: 3.5%

McBride plc's 3.5% growth in powders is driven by increasing demand for eco-friendly laundry detergents, rising popularity of online shopping, and expansion into emerging markets. Additionally, the company's focus on product innovation, cost savings initiatives, and strategic partnerships have contributed to the growth.

Aerosols

Expected Growth: 4.8%

McBride plc's Aerosols segment growth of 4.8% is driven by increasing demand for personal care and household products, expansion into emerging markets, and strategic partnerships with major retailers. Additionally, the company's focus on innovation, sustainability, and cost savings initiatives has improved operational efficiency and enhanced competitiveness.

Asia Pacific

Expected Growth: 6%

McBride plc's 6% growth in Asia Pacific is driven by increasing demand for household and personal care products, fueled by a growing middle class and urbanization in countries like China, India, and Indonesia. Additionally, the region's e-commerce boom and rising health awareness are contributing to the growth.

7. Detailed Products

Surfactants

McBride plc offers a range of surfactants, which are used in various cleaning products, such as laundry detergents, dishwashing liquids, and personal care products.

Dishwash

McBride plc provides a variety of dishwash products, including tablets, powders, and liquids, for both domestic and professional use.

Laundry

McBride plc offers a range of laundry products, including washing powders, liquids, and tablets, for both domestic and industrial use.

Personal Care

McBride plc provides a range of personal care products, including shower gels, body washes, and hand soaps, for both domestic and professional use.

Automotive Care

McBride plc offers a range of automotive care products, including car washes, polishes, and waxes, for both domestic and professional use.

Specialty Chemicals

McBride plc provides a range of specialty chemicals, including adhesives, sealants, and coatings, for various industrial applications.

8. McBride plc's Porter Forces

Forces Ranking

Threat Of Substitutes

McBride plc operates in a market with moderate threat of substitutes, as customers have some alternatives but they are not very attractive.

Bargaining Power Of Customers

McBride plc's customers have low bargaining power due to the company's strong brand presence and limited buyer concentration.

Bargaining Power Of Suppliers

McBride plc's suppliers have moderate bargaining power due to the presence of multiple suppliers and the company's moderate dependence on them.

Threat Of New Entrants

The threat of new entrants is high in McBride plc's industry due to low barriers to entry and high growth potential.

Intensity Of Rivalry

The intensity of rivalry is high in McBride plc's industry due to the presence of many competitors and high competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 81.42%
Debt Cost 10.08%
Equity Weight 18.58%
Equity Cost 10.17%
WACC 10.09%
Leverage 438.27%

11. Quality Control: McBride plc passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Duni

A-Score: 5.7/10

Value: 6.0

Growth: 5.3

Quality: 4.5

Yield: 4.4

Momentum: 5.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Warpaint London

A-Score: 5.1/10

Value: 6.2

Growth: 8.2

Quality: 7.9

Yield: 7.5

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
McBride

A-Score: 4.8/10

Value: 8.2

Growth: 7.1

Quality: 5.0

Yield: 1.9

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Intercos

A-Score: 4.6/10

Value: 5.2

Growth: 7.2

Quality: 5.3

Yield: 1.9

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
PZ Cussons

A-Score: 3.7/10

Value: 6.8

Growth: 1.1

Quality: 2.8

Yield: 6.9

Momentum: 2.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Ontex

A-Score: 3.4/10

Value: 9.6

Growth: 4.0

Quality: 2.0

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.6$

Current Price

1.6$

Potential

-0.00%

Expected Cash-Flows