Shares in the maker of brands such as Oven Pride have jumped to their highest value in almost a year after it revealed its losses and net debt will be lower than previously expected.
Manchester-based McBride, which makes and supplies private label and contract manufactured products for the domestic household and professional cleaning and hygiene markets, has said "new business wins combined with favourable demand levels for private label products, have meant that output levels are more favourable than expected".
It added that customer service levels have "continued to improve significantly, in turn delivering better volumes and supporting opportunities for more strategic partnerships with key customers".
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As a result, the business said it now expects its adjusted operating profit and full year reported loss before tax to be ahead of market expectations by between £5m and £10m for the 12 months to June 30, 2023.
It is also forecasting its net debt to be between £15m and £20m lower than current market expectations.
Current market expectations as for McBride's sales revenue to be £874m for the year and its reported pre-tax losses to be £27.3m. Its net debt was also forecast to be £201.5m.
Following the trading update, which was issued to the London Stock Exchange, shares in McBride jumped by almost 20% to 34p each.
It is the highest the shares have been since towards the end of May last year.
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