Shares in private label household and personal care products manufacturer Mcbride (LSE: MCB) have been given a boost today by a positive set of results for the six months to 31 December 2015. The key takeaway is that Mcbride is performing ahead of expectations and therefore expects to post full-year numbers ahead of current guidance.
In the first six months of the fiscal year, Mcbride increased sales by 0.4% on a constant currency basis, with adjusted profit before tax rising by 56.3% to £13.6m. This was greatly aided by a UK restructuring project on target to deliver annualised savings of £12m by the end of the current financial year. And while dividends have been cut by 29.4% to 1.2p per share, the payout is in line with the company’s new dividend policy.
With McBride’s turnaround plan seemingly on track and its shares trading on a price-to-earnings growth (PEG) ratio of just 0.7, now seems to be a good time to buy a slice of it for the long run. Although the European economy could endure a challenging period over the medium term, with the potential for a Brexit, McBride’s risk/reward ratio seems to be highly appealing at the present time.
Too rich for your blood?
Also reporting today was wealth management company Rathbone (LSE: RAT). It has been able to grow assets under management by 7.4% in the 2015 financial year despite disappointing performance by the FTSE 100. Of course, acquisitions helped to bolster this figure and aided the company in reporting a rise in pre-tax profit of 28.2%, with it standing at £58.6m for 2015.
With Rathbone forecast to increase its bottom line by a further 7% in the current year, it offers a growth rate that’s generally in line with that of the wider index. And while it faces an uncertain future due to the high degree of volatility present in markets, it appears to be making encouraging progress with its strategic initiatives. However, with the company’s shares trading on a price-to-earnings (P/E) ratio of 18.1, they appear to be rather richly priced at the moment.
Risky but rewarding?
Meanwhile, International Personal Finance (LSE: IPF) has today reported robust numbers given a highly challenging set of trading conditions. The figures, however, haven’t been well-received by the market and IPF’s shares are currently down by 10%. That’s despite it being able to record flat pre-tax profit while making investments in its digital business, as well as negative currency movements.
In addition, IPF is also having to cope with major regulatory change in Poland and Slovakia, which it believes will materially impact on its profitability in 2016 and beyond. As such, the company is forecast to grow its bottom line by just 1% in the current financial year. But with it trading on a P/E ratio of just 6.1, IPF may be of interest to less risk-averse investors.
