Private label household goods manufacturer McBride have risen by almost 6% this morning after a reassuring update on first half trading.
Group revenues increased by 0.4% (constant currency) in the six months to 31 December 2015 compared to the corresponding period last year.
McBride also said that profits are “benefiting from actions associated with business simplification, streamlining and cost initiatives”.
“As a consequence, first half year underlying trading results will show further overall progress, in particular when compared to the first half of last financial year,” McBride said.
Shares rose 5.8% to 158.5p in morning trading – negating the damage done yesterday when the shares dropped 5.7% to 149.8p.
McBride has had a strong share price run over the past year, doubling in value over the past twelve months and up 35% since early September 2015.
Analysts at Liberum retained their buy recommendation on the stock with a 200p target price and said this morning: “McBride remains a recovery play, offers value over the medium and more importantly reassures that the new strategy is on track.”
Its 0.5% constant currency revenue rise was comfortably above Liberum’s forecast of a decline of 4.1% which reflects forex movements and the second half weighting of customer rationalisation and SKU count reduction.
The group will announce its interim results for the six months ended 31 December 2015 on 24 February 2016