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McBride (MCB) said this morning that its profits for the full year will be ahead of expectations thanks to its cost saving programme.

However, sales are 1.9% lower for the 12 months to 30 June than for the previous year as the manufacturer of private label products for the household and personal care markets reduced the number of small customers it serves.

The simplification programme has cost the group £6m in revenues, with ongoing price pressures in a number of key markets, especially in the UK, also hurting the top line.

McBride said in the trading update that adjusted operating profits would be “slightly ahead” of previous expectations.

“The group’s full-year performance has benefited from better-than-anticipated progress on cost saving initiatives, including the final year impact of the UK business restructuring project,” the statement added.

“Purchasing-driven savings, in part a result of the decision to reduce the group’s range of products and customers, have additionally contributed to the result.”

There had been no impact to date on the group’s day-to-day operations from the outcome of the EU referendum, McBride said.

“It remains too early to determine the longer-term effects on McBride’s activities, of which approximately 70% are in subsidiaries based outside the UK,” the group added.

Shares in the manufacturer opened strongly this morning, up almost 2% to 155.7p so far.

Morning update

Majestic WINE (WINE) has won High Street Chain of the Year at the International Wine Challenge Merchant Awards 2016. John Colley, managing director of Majestic Retail, said in a short statement to the London Stock Exchange: “Winning the IWC High Street Chain of the Year award is an incredible achievement and is especially important as it reflects all the work that has been done this year as part of our transformation plan. We are making brilliant steps in becoming a customer focused business with the best people in the trade and I’d like to not only thank the IWC for recognising how far we have come in this short period of time but also all our people at Majestic for their efforts in putting the customer back at the heart of what we do.”

Shares in the wine retailer have climbed 1% today to 382.2p.

There is little else to report as the markets get off to a quiet start. The FTSE 100 has kept up recent momentum, rising 0.7% to 6,633.29 points. Poundland (PLND) has soared 6% to 194.3p as the City waits expectedly for a takeover bid from Steinhoff ahead of Wednesday’s deadline. Most other stocks have also made gains so far today, including B&M Bargains (BME), Britivc (BVIC), Sainsbury’s (SBRY), Tesco (TSCO) and Booker (BOK), up 1.2% to 249.2p, 1% to 610.5p, 1% to 226.1p, 0.9% to 164.7p and 0.8% to 163.9p respectively.

This week in the City

Tomorrow mornings brings the latest BRC-KPMG Retail Sales survey for June, which is likely to show more pain on the high street.

Steinhoff will have to put up or shut up before Wednesday if it wants to make an improved bid for Poundland ahead of the Takeover Panel deadline.

In wider retail, ASOS reports its Q3 on Tuesday, Burberry updates on the first quarter on Wednesday and Thursday sees SuperGroup report its finals and Mothercare and Halfords their Q1s.

Marks & Spencer also holds its AGM on Wednesday.