Annual financial statement
Page 1
RNS Number : 7268UMcBride PLC15 September 2026 McBride plc ('McBride' or the 'Group') Results for the year ended 30 June 2026 Resilient overall performance, increased shareholder returnsPost year-end Eurotab acquisition and Vestacy agreement providing transformational future growth 15 September 2026 McBride, the leading European manufacturer and supplier of private label and contract manufacturedproducts for the domestic household and professional cleaning and hygiene markets, announces itspreliminary results for the year ended 30 June 2026. YearendedYear ended Constant30 June 30 June Reported currency £m (unless otherwise stated) 2026 2025 change change(1) Revenue 934.2 926.5 0.8% (1.8)% Adjusted operating profit(2) 59.0 66.1 (7.1) (9.4) Operating profit 50.1 60.2 (10.1) (12.3) Adjusted EBITDA(2) 80.0 85.8 (5.8) (8.8) Adjusted profit before taxation(2) 48.8 54.9 (6.1) (7.6) Profit before taxation 39.9 49.0 (9.1) (10.5) Adjusted basic earnings per share(3) 21.6p 22.1p (0.5)p (1.1)p Basic earnings per share(3) 17.7p 19.5p (1.8)p (2.4)pDividend per share 3.1p 3.0p 0.1p Net debt(2) 122.8 105.2 17.6 Adjusted return on capital employed(2) 27.3% 33.0% (5.7)ppts 1Comparatives translated at financial year 2026 exchange rates. 2Refer to note 19 for definition. 3See note 8. Chris Smith, Chief Executive Officer, commented:"It is pleasing to report results which demonstrate the fundamentally more agile and capable businessthat McBride is today. While the geopolitical crisis in the Middle East created major macroeconomicvolatility and significant immediate raw material and logistics cost pressures in the second half, weremained firmly in control with prompt actions to mitigate the material cost impact we faced. We expectfurther input cost uncertainty as we start the new financial year, and we continue to monitor and beready to respond to possible further rises. "Despite these headwinds, we have not paused our strategic momentum. Our private label offeringcontinues to resonate powerfully with our retail customers and value-conscious consumers, with theprospects for market growth as strong as ever against the backdrop of rising household inflation. TheTransformation programme is successfully embedding structural efficiencies across the Group. Ourgrowth prospects are further enhanced with the recently completed acquisition of Eurotab and theannouncement of a new strategic contract manufacturing partnership with Vestacy. Both of these growthprojects broaden our category capabilities, drive further scale and bring significant revenue and profitgrowth, supporting progress toward our 10% adjusted EBITDA margin ambition. "We enter 2027 with a strong balance sheet, an agile commercial model and a deep confidence in ourability to deliver sustainable growth and enhanced returns for our shareholders." Financial highlights· Revenue of £934.2m (2025: £926.5m), with 0.4% volume growth from private label · Adjusted EBITDA(2) of £80.0m (2025: £85.8m), representing 8.6% of revenue (2025: 9.3%)· Reduced profit levels mostly a result of Q4 margin recovery lag following the Middle East crisisdriving inflationary pressures and necessary price increases from customers· Adjusted basic EPS of 21.6p (2025: 22.1p)· Significant return to shareholders of £18.0m comprising dividend payments of £5.2m, a sharebuyback programme of £6.4m, together with £6.4m direct share purchases by the Employee BenefitTrust (EBT) reducing future equity dilution on incentive awards
Page 2
· Net debt(2) at £122.8m (2025: £105.2m), representing 1.5x adjusted EBITDA(2) (2025: 1.2x) Strategic and operational highlights· Total sales volumes remained broadly stable, with private label growth (+0.4%) offsetting softerdemand in contract manufacturing· Transformation programme delivered £15.3m in cumulative net benefits, keeping the Group firmly ontrack for its £50m benefits target by June 2028· Successful implementation of Wave 1 of the SAP S/4HANA ERP in the UK, with the next wave ofimplementations at two of the Group's European sites expected to go live in the next financial year· Net capital expenditure levels of £31.2m, with strong focus on automation, operational upgrades,efficiency and multi-year SAP modernisation· Completed the acquisition of Eurotab Group post-period, adding solid-format cleaning technologyand expanding the European footprint; accretive to EPS from completion· Transformational multi-year contract manufacturing agreement with Vestacy announced in August2026, increasing Group revenue and earnings by 15% at maturity in early 2028 Outlook· Volumes in the early part of the new financial year in line with internal expectations, with somepossible early signs of stronger market growth in certain regions· Cost environment difficult to predict given ongoing geopolitical tensions, further price risesincreasingly likely· First-quarter margin lag as expected, improving during second quarter, subject to materials pricingdevelopments· Integration activities for Eurotab acquisition have started well· Early work already started for transition requirements and capital deployment in relation to the newlong term Vestacy partnership Analyst and investor presentationA results presentation will be available on the investor relations page of the McBride plc website from10.00am today. McBride plc via TEAM LEWISChris Smith, Chief Executive OfficerMark Strickland, Chief Financial Officer Team Lewis mcbride@teamlewis.comGalyna KulachekJustine Warren +44 20 7802 2664+44 20 7802 2617 Forward-looking statementsThis announcement contains forward-looking statements about financial and operational matters. Forward-looking statements can be identified by the fact that theydo not relate strictly to historical or current facts. They sometimes use words such as "may", "will", "could", "should", "aim", "expect", "plan", "intend", "anticipate","believe", "achieve", "project", "predict", "seek", "estimate", "objective", "goal", "target" or other words of similar meaning. These statements are based on thecurrent views, expectations, assumptions and intentions of management and are based on information available to management as at the date of thisannouncement. Because they relate to future events and are subject to future circumstances, these forward-looking statements are subject to risks, uncertaintiesand other factors which may not have been in contemplation as at the date of the announcement and/or which are beyond McBride plc's ability to control orprecisely estimate, including (but not limited to) those set out in this announcement and the economic and business circumstances occurring from time to time in thecountries, sectors and markets in which McBride plc operates. As a result, actual financial results, operational performance and other future developments coulddiffer materially from those envisaged by the forward-looking statements. No assurance can be given that any particular expectation will be met and undue relianceshould not be placed on any forward-looking statements. Additional factors that may affect future results are contained in the "Principal risks and uncertainties"section of McBride plc's most recent Annual Report and Accounts. Any forward-looking statements contained in this announcement speak only as of the date they are made. Neither McBride plc nor any of its affiliates undertake anyobligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except to the extentrequired by applicable law or regulation. This announcement does not constitute an offer or invitation to underwrite, subscribe for, or otherwise acquire or dispose of any McBride plc shares or othersecurities, or of any of the businesses or assets described in the announcement, nor shall it (or any part of it) or the fact of its distribution form the basis of, or berelied upon in connection with, any contract therefore. Overall business performance McBride has delivered a year of resilient performance amid external cost pressures against a backdropof macroeconomic volatility and geopolitical tensions, particularly in the second half of the financial year.While the external environment weighed on financial performance, the Group retained firm controloperationally and in cost level management. Commercially, McBride's position developed well during theyear, underpinned by a positive win rate, new product introductions in laundry and dishwash categories,a range of contract launches and further development of key customer partnerships. The Group faced significant headwinds in the second half of the year, driven by the geopolitical crisis inthe Middle East, which resulted in sustained cost increases across petrochemical-derived materials,energy, packaging and haulage. The Group's price recovery actions, tied to its disciplined three-monthpricing approach, progressed rapidly, through early and detailed discussions with its customers tosecure offsetting price increases. Due to the standard time lag between rising input costs and priceimplementation, the financial impact is concentrated within the fourth quarter of 2026 and, subject to thedirection of the Middle East crisis, into the early part of the new financial year. The Group currentlyexpects margins to normalise from the second quarter of the 2027 financial year. The private label market continues to offer real value to consumers navigating a challenging cost-of-living environment. As has been the case in previous periods of rapid inflation, demand for private labelcleaning products has remained resilient, reflecting the compelling value for money that these products
Page 3
offer households facing affordability pressures. McBride expects this trend to continue and for privatelabel penetration to expand across most markets in Europe. Total sales volumes for the year remained broadly flat year on year despite inflationary pressuresimpacting fourth-quarter revenue. Private label volumes were marginally up by 0.4%, partially offsettingsofter demand in contract manufacturing and McBride brands. There was a shortfall against expectedsecond-half volumes, in part due to customers delaying or postponing product launches amid pricingdiscussions. These volumes are expected to be realised in the 2027 financial year. At the same time,strengthening momentum in the contract manufacturing pipeline presents a clear medium‑term growthtrajectory for the Group. Financial performance Adjusted operating profit for the year was £59.0 million (2025: £66.1m), reflecting the cost headwindsset out above, partially offset by the Group's pricing and margin management actions and continuedoperational and cost discipline. Despite the 10.7% lower adjusted operating profit, adjusted basic EPSonly reduced by 2.3% as a result of disciplined capital and cash management. Net debt at 30 June 2026 was £122.8 million (2025: £105.2m), representing net debt/adjusted EBITDAof 1.5x (2025: 1.2x). In November 2025, the Group exercised the extension option on its revolving creditfacility (RCF), maintaining its four-year term to November 2029, with a further option to extend by oneadditional year. This continues to provide the Group with significant liquidity headroom and reflects theongoing confidence of its banking partners in McBride's strategy and performance. The Group's financial position and capital allocation strategy remain focused on a balanced approach,continuing to modernise its operational footprint through a robust capital investment programme, whilemaintaining cash generation and returns to shareholders. Health, safety and wellbeing The Group made strong progress this year, underpinned by continued improvements across its corebusiness activities, including an unwavering commitment to health and safety. The mental and physicalwellbeing of the workforce remains a primary focus, supported by the introduction of a daily 'QRP' checkbooklet to further embed safety protocols. Reflecting this strategic imperative, on 2 June 2026 the Group temporarily paused operations at itsfactory in Poland to hold a dedicated Safety Day, allowing teams to focus entirely on health, safety andwellbeing. This hands-on initiative demonstrates the Group's practical focus on embedding site-levelsafety across its operational footprint. The Group recorded a lost time injury frequency rate (accidents per 100,000 hours worked) in 2026 of0.34 (2025: 0.48), an impressive 29.2% improvement, as it continued its zero loss journey. Sustainability McBride built on its sustainability agenda over the year, ensuring its environmental strategy deliverstangible progress aligned with the Group's commitment to the Science Based Targets initiative (SBTi). Through targeted energy efficiency initiatives, and an increase in renewable electricity to 90.0%, theGroup has reduced its Scope 1 and 2 emissions by 26.0%, saving 3,867 tonnes of CO2e. At a product level, it has continued to compact formulations across its divisions, achieving 29.7% post-consumerrecycled (PCR) weight across all plastic product packaging. To ensure climate objectives are deeply embedded within the Group culture, McBride has been rollingout a comprehensive Carbon Literacy® employee training programme across the business. Lookingahead, the Group is actively targeting Scope 3 carbon hotspots within its raw material supply chain,ensuring all operational divisions drive meaningful progress towards the long-term transition goals. Transformation and innovation McBride's Transformation programme continues to deliver strong structural progress, keeping the Groupfirmly on track to achieve its ambition of £50 million in cumulative net benefits by 2028. In2026, the Group secured £15.3 million in cumulative net benefits, as multiple core workstreamssuccessfully concluded and transitioned into everyday operations. A major milestone was achieved in November 2025 with the successful UK go-live of the OperatingSystems Excellence (SAP S/4HANA) programme, which validated the majority of the Group's 'GlobalTemplate' design. The team captured valuable early lessons from this deployment and Wave 2 isalready in the 'build' phase, with the target of bringing two large sites in Europe online in the thirdquarter of the new financial year. Meanwhile, the Service Excellence programme concluded in September 2025, securing robustcustomer service levels of 92.0% for the year and setting the stage for improved planning, in part fromreduced demand volatility. The Commercial Excellence workstream concluded in December 2025,contributing £3.8 million in net benefits for 2026, with additional initiatives to drive further value indevelopment. In addition, the Productivity Excellence stream secured £6.5 million in net benefits, through targetedresource efficiency and Overall Equipment Effectiveness (OEE) gains slightly in excess of the Group's2ppts per annum improvement target. Innovation remains central to McBride's strategic direction. Within the Unit Dosing division, the Groupsuccessfully developed and launched its next-generation 'classic tab'. By engineering a smaller, highly
Page 4
concentrated, new product format, McBride has improved transport efficiency and reduced packaginglevels, thereby substantially reducing the environmental impact. The Liquids team launched the 'quickwash' laundry liquid towards the end of the financial year. These are just two examples of the Group'sconstant attention to innovation as a clear market leader, supporting customer partners in constantlyrefreshing their ranges and improving the private label offering for consumers. Enhancing shareholder returns Supported by this resilient operational foundation, the Board increased its capital allocation toshareholder returns, deploying £18.0 million towards total shareholder returns in 2026, up from £2.4million in 2025. This balanced, proactive approach is designed to optimise value across three distinctavenues. Firstly, the Group distributed £5.2 million in dividend payments, reflecting the final 2025dividend of 3.0 pence per ordinary share. Secondly, it initiated a broader share buyback programme ofup to £20 million, deploying £6.4 million in the year recognising the Board's view of the compelling valueof McBride's shares. Thirdly, the Group allocated £6.4 million to the Employee Benefit Trust (EBT) tofund direct share purchases, thereby preventing future equity dilution on incentive awards. This disciplined allocation of capital reflects the Board's ongoing confidence in the Group's cashgeneration and strategic delivery. Strategic ambition: acquisition of Eurotab The Group completed a key strategic acquisition shortly after the end of the financial year. Reinforcingthe Unit Dosing division's position as a leading European producer of tablet-format detergent products,the acquisition of Eurotab Group adds a leading specialist in the design and manufacture of solid-formatcleaning and hygiene solutions. Eurotab produces a diverse tablet-format product range, includingautomatic dishwasher tablets and two new categories for McBride, in moisture-absorbing solutions anddisinfecting bleach tablets. Its two specialised manufacturing sites in France serve private label andcontract manufacturing customers across Europe, complemented by a further operation near Istanbulserving Turkey. The acquisition will deepen relationships with key retail and branded customers and opens access tonew markets. The enterprise value on completion was €35.6 million (£30.7 million). It is expected to beaccretive to earnings per share from completion, further enhanced by identified synergies and willsupport continued progress towards the Group's strategic aim of a 10% adjusted EBITDA margin. Strategic ambition: Vestacy contract manufacturing Maintaining this strategic momentum, on 28 August 2026 McBride announced a transformationalpartnership with Vestacy. Under multi-year agreements, the Group will manufacture a range ofhousehold products for Vestacy across Europe, with a primary focus on the laundry market. As part ofthe transaction, McBride is also acquiring two dedicated manufacturing facilities in Spain and Portugalfor nominal consideration. The structure is highly capital efficient, with Vestacy funding new productionequipment across McBride's European network, alongside targeted investment from the Group. Once fully operational, anticipated in calendar year 2028, the partnership is expected to deliversignificant incremental revenue of approximately £170 million at Group-average margins, lifting contractmanufacturing mix beyond the Group's 25% target and reinforcing McBride's scale and competitivepositioning across Europe. Current trading and outlook Sales volumes in the first two months of the new financial year have started in line with expectations,with some early evidence of increased demand levels in some markets, possibly as a result ofinflationary pressures on consumers. The outlook on cost levels for raw materials, packaging and fuel is difficult to forecast given the level ofgeopolitical tensions that still persist in the Middle East and Eastern Europe. The Group hassuccessfully agreed pricing changes with all of its customers but, given market volatility, further rises areincreasingly likely to be required. At this stage, the Group expects margins to recover during the secondquarter, subject to market developments of input costs. Integration activities for the Eurotab acquisition have started well, with strong engagement between thebusiness teams. Delivery of the first-year core financial results and early progress on synergyopportunities are clear priorities. Following the recent announcement of the strategic partnership withVestacy, teams from both companies are already engaging on transition activities for the sites in Spainand Portugal and on capital procurement needs. Divisional performance review Year ended Year ended30 June 30 June Constant2026 2025 Reported currencyRevenue £m £m change changeLiquids 526.0 529.6 (0.7)% (3.1)%Unit Dosing 226.3 228.9 (1.1)% (3.8)%Powders 88.7 85.5 3.7% 0.7%Aerosols 67.3 58.9 14.3% 10.5%Asia Pacific 25.9 23.6 9.7% 7.5% Group 934.2 926.5 0.8% (1.8)% Year ended Year ended Constant
Page 5
30 June 30 June Reported currency2026 2025 change changeAdjusted operating profit/(loss) £m £m £m £m Liquids 31.4 41.0 (9.6) (10.9)Unit Dosing 23.8 22.5 1.3 0.7Powders 5.7 6.8 (1.1) (1.3)Aerosols 3.6 3.1 0.5 0.3Asia Pacific 1.3 1.1 0.2 0.2Corporate (6.8) (8.4) 1.6 1.6 Group 59.0 66.1 (7.1) (9.4) Liquids performance reviewLiquids revenue decreased by 0.7% to £526.0 million (2025: £529.6m). Adjusted operating profit was£31.4 million (2025: £41.0m), resulting in an adjusted operating profit margin of 6.0% (2025: 7.7%).Adjusted ROCE decreased to 27.0% (2025: 40.5%). Sales volumes softened compared with 2025, with private label and contract manufacturing salesbroadly flat and own brand sales lower. This was mostly a result of a highly competitive market in Italyand a temporary reduction in demand from a major contract manufacturing customer. It was alsoimpacted by short-term service challenges in the UK and Italy; in the UK's case, this was partlyattributable to the in-year implementation of SAP S/4HANA. Between late 2025 and early 2026, the division secured significant additional private label business,which was expected to launch in the second half of the financial year. However, several of theselaunches were subsequently delayed into the next financial year and, as a result, the volume upliftanticipated for the fourth quarter did not materialise. The outlook for future years remains strong,supported by the commencement of the newly secured private label business and a recently signedmajor contract manufacturing agreement expected to launch in summer 2027. The lower adjusted operating profit was primarily driven by the Middle East conflict in the fourth quarter.It was also impacted by the lower sales volumes and the non-repeat of certain one-off gains realised in2025. Despite these challenges, all regions within the division contributed positively to profitability by theend of the year. The past year was notable for a strong set of new innovation launches within the division, including thesuccessful delivery of the 'quick wash' product line and the new upside-down trigger concept. Theinnovation pipeline remains robust and is well positioned to drive business development in the comingyears, alongside capital investment in new laundry production capacity and increased brand marketingin the UK. The Liquids division has boosted its focus on continuous improvement activities, especially inoperations. It achieved a 50% year-on-year reduction in workplace accidents, moving closer to itsultimate goal of zero lost time incidents. The division's capital investment allocation strategy remainsfocused on meeting strategic growth targets, frequently linked to the delivery of new sustainableproducts, alongside productivity gains and the upgrading of facilities and equipment. During the year, delays in executing specific capital expenditure initiatives deferred planned costreductions. The division has since strengthened its core engineering team to ensure the timely deliveryof investment plans and the design of optimised solutions to support growth, sustainable products andproductivity. The capital projects completed during the year, as well as those currently underway, areexpected to benefit future results. Following the end of the financial year, the Group announced a transformational strategic partnershipwith Vestacy, with most of the volumes supporting the future growth of the Liquids division. Thisagreement, focused primarily on the laundry market, will expand the division's production volumes andstrengthen its European network. The transaction adds two dedicated manufacturing facilities in Spainand Portugal, alongside partner-funded investments in new production equipment to drive capacityutilisation and long-term scale across a number of Liquids sites. Unit Dosing performance reviewUnit Dosing revenue decreased by 1.1% to £226.3 million (2025: £228.9m). However, adjustedoperating profit increased by £1.3 million to £23.8 million (2025: £22.5m), resulting in an adjustedoperating profit margin of 10.5% (2025: 9.8%). Adjusted ROCE increased to 38.0% (2025: 35.4%). Improved profitability was supported by targeted investments in the division's operational structure andproduction efficiencies, combined with disciplined cost management and a continued focus onoptimising the operational cost base. Total volumes in doses declined by 2.1% when compared to the previous year, however the division'sprivate label volumes grew by 0.7%. This was broadly in line with the total private label market, whichsaw growth of 0.5% in volume terms, or 3.2% in terms of value. However, changing consumerpreferences towards larger pack sizes resulted in a 0.8% decline in total private label packs sold.Contract manufacturing volumes declined compared to the prior year, reflecting a weak first-halfperformance as a result of the carry-over impact of a significant contract loss in the prior year. Exit ratesin the fourth quarter were positive. As a result, the division enters the new financial year with positivemomentum.
Page 6
The division saw improved operational performance across the three sites, with encouraging trends inproductivity and efficiency as a result of the delivery of a number of important capital projects. Thedivision launched its new 'Fusion' range early in the financial year, achieving promising commercial take-up that accelerated throughout the period. This remains a strategic area of investment, with new capsuleproduction lines scheduled to become operational in early 2027, strengthening the division's capacity tosupport future demand. The conflict in the Middle East caused some supply chain disruption and elevated raw material inputcosts from early April. The division responded promptly by entering into discussions with its strategicpartners to adjust pricing. As expected, the business saw a timing lag occur between the onset of thesecost increases and their recovery, however margins are projected to recover during the first half of thenew financial year. Following the end of the financial year, the Group completed the strategic acquisition of Eurotab, aspecialist in solid‑format cleaning and hygiene solutions, including dishwasher tablets,moisture‑absorbing products and disinfecting bleach tablets, of which the latter two categories are newto McBride's product range offering. This transaction materially strengthens the Unit Dosing division'sposition as a leading European producer of tablet‑format detergent products. Additionally, it opensaccess to new markets across Europe and Turkey. Powders performance reviewPowders revenue increased by 3.7% to £88.7 million (2025: £85.5m). Adjusted operating profitdecreased by £1.1 million to £5.7 million (2025: £6.8m), resulting in an adjusted operating profit marginof 6.4% (2025: 8.0%). Adjusted ROCE decreased to 28.6% (2025: 30.0%). Overall sales volume in tonnes grew by 2.0% compared to last year, with the majority of the growthachieved in the second half, despite a challenging broader market. The European laundry powders category remains in long‑term structural decline, with traditional powder formats facing sustainedvolume pressure across all major markets. Within this challenging market context, private label offerings have increasingly become the primarymechanism for growth and consumer relevance. Private label volumes were up 5.3% year on year, asthese products continue to capture market share through competitive retail pricing, premium productquality and rising consumer trust. Contract manufacturing activities remained stable year on year,representing 42.6% of divisional revenue. In addition to the broader long-term context, the division's improved revenue was also achieved whileactively managing several short-term operational challenges, including temporary supply chaindisruptions during retail price negotiations and delayed product rollouts at major retailers. The division'sresilience stems from having the customer, operational and regulatory foundations required to supportlong-term growth. Manufacturing excellence remained a central priority, with a continued focus on safety, efficiencyimprovements and the modernisation of the production site in Holstebro. Strategic activity at Holstebroincluded structural changes to streamline overhead management and targeted initiatives to minimise thesite's environmental footprint. Cost-saving initiatives supported the division's overall performanceagenda, helping to offset inflationary and operational pressures, while reinforcing a disciplined approachto efficiency and margin protection. Sustainability metrics remain embedded across all operational and commercial workflows, with a continuous focus on carbon footprint reduction and energy‑efficient manufacturing processes. Thedivision also maintains strict alignment with the evolving environmental expectations of retail andcontract manufacturing customers. In addition, it progressed several key product launches andregulatory compliance activities, supporting business continuity and the pipeline of future customerpropositions. Aerosols performance reviewAerosols revenue increased by 14.3% to £67.3 million (2025: £58.9m). Adjusted operating profit was£3.6 million (2025: £3.1m), resulting in an adjusted operating profit margin of 5.3% (2025: 5.3%).Adjusted ROCE decreased to 21.4% (2025: 23.1%). Significant new contract wins, centred predominantly within the German market, drove the division'sstrong revenue performance and aligned directly with the division's long-term geographic expansionstrategy. The product leadership strategy, which leverages its specialised capabilities in manufacturingniche product formats, extends across both private label and branded customers. In the year, themajority of the volume gains were achieved within the private label segment, up 13.0% year on year,alongside a 10.4% increase in contract manufacturing. The expansion into Germany resulted in a minormargin erosion due to local market pricing dynamics, however the additional volumes contributedpositively to overall profitability. Private label remains the structural core of the Aerosols division, accounting for 82.4% of divisionalrevenue and generating the majority of its annual growth. More broadly, private label continues toexpand its market share across the wider European aerosol category. Contract manufacturingnevertheless remains a stable and reliable component of the overall portfolio. In the fourth quarter, the Middle East conflict significantly impacted raw material pricing, affecting profitmargins. Ongoing price recovery agreements with customers are projected to minimise this impactgoing into the early part of the new financial year. Moving forward, broader inflationary cost pressures
Page 7
are expected to be recovered through a combination of revised commercial pricing and internaloperational efficiencies. The division continues to pioneer sustainable packaging and formulation solutions across its productportfolio, with packaging initiatives launched in 2024 being successfully rolled out to a significantly widercustomer base during the period, and sustainable tin-plate cans and lightweight cardboard capsintroduced commercially for the first time. An operational focus on cleaner chemical formulations,specifically excluding PFAS, PEG and PEG derivatives, and a focus on improving the division's overallcarbon footprint through a targeted reduction in virgin plastic usage, cements the division's market-leading credentials. During the year, the division fully completed a major capital expenditure investment to expand bothfilling and mixing capacity within the personal care segment. This enables the production of over 100million cans per annum, confirming the operational success of the strategic expansion and supportingsustained growth across both the household and personal care categories. Asia Pacific performance reviewAsia Pacific revenue grew by 9.7% to £25.9 million (2025: £23.6m), generating an adjusted operatingprofit of £1.3 million (2025: £1.1m), which represents an operating profit growth of 18.2% versus theprior year. Adjusted operating profit margin was 5.0% (2025: 4.7%) and adjusted ROCE increased to15.3% (2025: 15.1%). Overall sales volumes declined 4.0%, primarily driven by lower demand for contract manufacturing inVietnam and a rebalancing of customer inventory levels in Australia. Despite this overall volumeperformance, the division continued to expand its commercial presence in the Malaysian private labelmarket. It also made further positive progress in the private label segment in Australia, from its personalcare product offering, and with breakthrough new private label contract wins in the household category,which are set to launch in the first quarter of the 2027 financial year. In addition, the division managed its cost base efficiently to protect profitability, despite the supply chainand logistical challenges faced due to geopolitical tensions in the fourth quarter. Cost recovery efforts are currently underway across the region to mitigate rising material prices causedby the Middle East conflict. However, commercial pricing remains highly sensitive across the Asia-Pacific region. The division is accelerating the deployment of automation capabilities across both itsMalaysia and Vietnam production sites to drive long-term productivity and labour efficiency. The Asia Pacific division has made substantial progress in enhancing internal quality systems with newinternational accreditations. The Vietnam manufacturing site successfully achieved ISO 9001certification during the financial year, and formal BRC accreditation for the Malaysian facility is set to begranted in October 2026. Group resultsRevenue increased £7.7 million in 2026 to £934.2 million (2025: £926.5m), however adjusted operatingprofit decreased by £7.1 million to £59.0 million (2025: £66.1m) and operating profit of £50.1 million wasalso lower than the prior year (2025: £60.2m). The Group reported adjusted EBITDA of £80.0 million(2025: £85.8m), resulting in an adjusted EBITDA margin of 8.6% (2025: 9.3%). The decrease in adjusted operating profit, despite increased revenue, was driven primarily by the impactof the Middle East conflict on freight, raw material and packaging input costs in the fourth quarter of theyear. Without this impact, the Group estimates that underlying adjusted operating profit would havebeen c.£65 million. The Group has taken balanced, decisive and proactive price recovery actions tomitigate these cumulative cost impacts, however short‑term margin timing lags have temporarilyaffected the full-year financial outcomes. In the event of a prolonged conflict, the Group will continue toimplement appropriate operational and commercial responses to protect its business and support thedelivery of its long-term strategy. Adjusted profit before taxation decreased £6.1 million to £48.8 million (2025: £54.9m). Reported profitbefore taxation was £39.9 million (2025: £49.0m). Exceptional itemsTotal exceptional items of £7.6 million were recorded during the year (2025: £4.0m). The chargecomprised the following:· £1.6 million costs associated with the strategic partnership with Vestacy;· £2.1 million costs relating to due diligence and acquisition costs associated with the acquisitionof Eurotab;· £2.2 million costs relating to the disruption, integration and assurance costs of the SAPS/4HANA implementation;· £1.0 million (2025: £0.4m) costs relating to the re-evaluation of the long-term environmentalremediation provision at Estaimpuis;· £0.7 million (2025: £2.1m) costs relating to a Group-wide strategic review of growth options;and· £nil (2025: £1.5m) employee severance costs in relation to organisational changes aimed atenhancing long-term operational efficiency and capability in line with the Group's strategy. Finance costs At £10.2 million, total finance costs were £1.0 million lower than in the prior year (2025: £11.2m), as aresult both of the Group's lower average debt levels in 2026 versus 2025, and a stabilising of globalinterest rates.
Page 8
TaxationThe tax charge on adjusted profit before tax for the year was £12.1 million (2025: £17.3m) and theeffective tax rate was 25% (2025: 32%). The Group operates across a number of jurisdictions and tax risk can arise in relation to the pricing ofcross‑border transactions. Associated provisions for uncertain tax positions were reduced in the year,mainly due to expiries in the statute of limitations. Earnings per shareOn an adjusted basis, diluted earnings per share was 20.6 pence (2025: 21.1p). Total adjusted basicearnings per share decreased to 21.6 pence (2025: 22.1p), with basic earnings per share at 17.7 pence(2025: 19.5p). Shareholder returns The Board confirmed its intention to reinstate annual dividends in February 2025. A final dividend for theyear ended 30 June 2025 of 3.0 pence per ordinary share, costing approximately £5.2 million, inaggregate, was approved at the Annual General Meeting (AGM) and paid in the period to 31 December2025. The Board is recommending a final dividend of 3.1 pence per ordinary share for the year ended 30 June2026, subject to approval by shareholders at the Company's 2026 AGM. If approved, the recommendedfinal dividend will be paid as a cash dividend on 27 November 2026 to all holders of ordinary shareswho are on the register of members on 30 October 2026. The ordinary shares will be marked as ex‑dividend on 29 October 2026. On 1 December 2025, the Company commenced a share buyback programme of up to £20 million inMcBride plc ordinary shares. The maximum number of ordinary shares that may be repurchased by theCompany under the programme is 17,401,528. Ordinary shares repurchased under the share buybackprogramme will be cancelled. During the period to 30 June 2026, the Company repurchased 4,479,384 ordinary shares, representing2.5% of the issued ordinary share capital as at 30 June 2026. The shares were acquired at an averageprice of 142.6 pence per share, with prices ranging from 119.6 pence per share to 160 pence per share.The total cost of £6.4 million, excluding transaction costs, was deducted from equity. At 30 June 2026,all repurchased shares had been cancelled, with the exception of 228,894 shares which were cancelledacross 1 and 2 July 2026. Since the period end, the Company has repurchased and cancelled furtherordinary shares under the share buyback programme. During the period to 30 June 2026, the EBT purchased 5,282,881 ordinary shares. The Companyprovided £6.4 million of funding to the EBT for these purchases, which will reduce equity dilution in theCompany on future vesting of incentive awards. Additionally, the EBT increased its holding through asubscription of new shares at par value (4,502,575 ordinary shares), totalling £0.4 million. Cash flow and balance sheet Year ended30 June2026 Year ended30 June2025£m £m Adjusted EBITDA(1) 80.0 85.8 Working capital excluding provisions and pensions (19.7) 13.7Share-based payments 1.6 1.6Loss on disposal of property, plant and equipment 0.4 0.4Impairment/(reversal of impairment) of fixed assets 0.1 (0.6)Pension deficit reduction contributions (5.7) (7.0) Free cash flow(1) 56.7 93.9 Exceptional items (7.6) (3.2)Interest on borrowings and lease liabilities less interest receivable (7.3) (7.9)Refinancing costs paid (0.6) (1.8)Tax paid (7.8) (17.9)Net cash generated from operating activities 33.4 63.1 Net capital expenditure(2) (31.2) (30.4) Repayment of lease liabilities (4.5) (4.2)Debt financing activities 50.7 (2.2)Settlement of derivatives 0.3 0.4 Free cash flow to equity(3) 48.7 26.7 Redemption of B Shares (0.1) -Dividends paid (5.2) -Purchase of own shares (6.4) -Purchase of own shares through the EBT (6.4) (2.4) Net increase in cash and cash equivalents 30.6 24.3 Free cash flow(1) was £56.7 million (2025: £93.9m) in the year to 30 June 2026, mostly attributable to the strong performance in adjusted EBITDA(1). Working capital outflows of £19.7 million (2025: inflows
Page 9
of £13.7m) reflect year-on-year movements in working capital, in particular the exact timing of creditorpayment runs, with the net impact over 2025 and 2026 amounting to an outflow of £6.0 million. Refinancing costs of £0.6 million (2025: £1.8m) relate to the exercise of the Group's RCF one-yearextension option and the execution of the accordion feature in June ahead of the acquisition of Eurotabin July. The prior period costs relate to the renegotiation of the Group's RCF. The significant decrease in tax paid to £7.8 million (2025: £17.9m) reflects the Group's taxable profitsacross the jurisdictions in which it operates; in prior periods, following loss-making years,payments on account were limited, resulting in higher balancing payments when profitability returned.Tax payments have now normalised. During the year, net capital expenditure was £31.2 million (2025: £30.4m) in cash terms. The Groupcontinues to prioritise capital expenditure to support divisional growth objectives and the SAP S/4HANAprogramme. Wave 2 rollout of the SAP S/4HANA programme global template is scheduled for theGroup's Belgian operations in 2027. Debt financing activities of £50.7 million in the year relates primarily to the Group utilising €40 million ofthe RCF's accordion feature prior to 30 June 2026 in anticipation of having the funds available tocomplete the acquisition of Eurotab in July. The Group's net assets increased to £111.1 million (2025: £94.3m). Gearing(4) increased to 56.7% (2025: 53.3%) as net debt levels increased by £17.6 million. Adjusted ROCE(1) of 27.3% (2025: 33.0%)was impacted by sustained high levels of capital expenditure coupled with reduced profits relating to theconflict in the Middle East. 1Refer to note 19 for definition. 2Net capital expenditure is capital expenditure less proceeds from sale of fixed assets. 3Free cash flow to equity excludes cash flows relating to transactions with shareholders. 4Gearing represents net debt divided by the average of opening and closing capital, being total equity plus netdebt. Bank facilities and net debt Net debt at 30 June 2026 was £122.8 million (2025: £105.2m). During the year, the Group exercised a €40 million part-utilisation of the accordion feature within itsmulti-currency, sustainability-linked RCF, increasing the facility to €240 million. The Group alsoexercised the first one-year extension option, maintaining a four-year term to November 2029, with anadditional option to extend by a further one year. This facility ensures the Group continues to havesignificant levels of liquidity headroom. Additionally, the Group has access to a further €35 millionremaining within the accordion feature. At 30 June 2026, liquidity(1), which is no longer a covenant requirement of the RCF agreement, wasincreased to £167.6 million (2025: £141.4m), mainly due to the increase in the RCF commitment. At 30 June 2026, the net debt cover ratio(1) under the RCF funding arrangements was 0.6x (2025: 0.4x) and the interest cover ratio(1) was 8.8x (2025: 8.5x), both comfortably compliant with the agreementrequirements of less than 3.0x and more than 4.0x respectively. The amount undrawn on the facility was£100.6 million (2025: £107.2m). The RCF, which is aligned with the Loan Market Association's 'Sustainability Linked Loan Principles',incorporates two sustainability performance targets, which are central to McBride's commitment tomaintaining a responsible business and contributing actively to a more sustainable future: 1. Greenhouse gas (GHG) emissions: the percentage reduction in Scope 1 and Scope 2 GHGemissions of the Group, including emissions from consumption of gas, electricity and oil andother direct emissions such as refrigerants and vehicle fleets as against the baseline. During theyear, the Group achieved a reduction of 57.7% (2025: 42.9%), surpassing the loan agreementtarget of 44.3% by 30 June 2026.2. Supplier engagement: percentage of GHG emissions attributed to suppliers of the Group, forpurchased goods and services with a science-based target that has been validated by theScience Based Targets initiative or otherwise assessed by a third party. During the year,engagement equivalent to 26.3% (2025: 20.8%) was achieved, exceeding the loan agreementtarget of 25.0%. Successful achievement of both annual targets results in a reduction of 0.05% of the margin of thefacility. At 30 June 2026, the Group had a number of facilities whereby it could borrow against certain of itstrade receivables. In the UK, the Group had a £20 million facility. In Spain, France and Belgium, theGroup had an unlimited facility. In Germany and Denmark, the Group had a €45 million facility,committed until December 2029. In Italy, the Group had a €23 million facility, committed until April 2028.The Group is negotiating new facilities for France and Spain to renew the commitment until November2029 and is also negotiating the commitment for Belgium with the current provider. The Group canborrow from the provider of the relevant facility up to the lower of the facility limit and the value of therespective receivables. Trade receivables amounting to £73.6 million (2025: £67.8m) are secured underthe invoice discounting facilities as at 30 June 2026.
Page 10
1Refer to note 19 for definition. Pensions In the UK, the Group operates a defined benefit pension scheme, which is closed to new members andto future accrual. At 30 June 2026, the Group recognised a deficit in the scheme of £18.1 million (2025: £23.0m). Thedecrease in deficit is due to deficit reduction contributions paid by the Group and an increase in discountrate placing a lower value on the liabilities. These were offset to some extent by interest on the deficit, adecrease in asset values mostly due to liability-matching assets that the Fund invests in, and allowancefor the 31 March 2024 triennial valuation, which is the difference between the estimated and actualexperience in the Fund over the inter-valuation period. Following the triennial valuation as at 31 March 2024, McBride and the Trustee agreed a new deficitreduction plan based on the scheme funding deficit of £32.3 million. A total amount of £5.7 million waspaid in the year ended 30 June 2026, relating wholly to annual deficit reduction contributions. It was agreed that, from 1 July 2026, £5.7 million per annum is payable until 30 June 2028 and, from 1July 2028, deficit reduction contributions revert to the previous agreement of 1 October 2024, with £4.0million payable per annum, plus up to £1.7 million per annum in conditional profit-related contributions,which are determined as follows:· If adjusted operating profit exceeds £35.0 million, additional annual deficit contributions of £1.7million will be due over the following year.· If adjusted operating profit is below £30.0 million then no profit-related contributions will be duethe following year.· If adjusted operating profit is between £30.0 million and £35.0 million, a proportion of the £1.7million contribution will be due the following year, with incremental increases of £0.34 million ofadditional contributions for each whole £1.0 million of adjusted operating profit in excess of £30.0million. As previously disclosed in the Annual Report and Accounts 2025, the NTL vs Virgin Media case couldhave implications for the Group. Following the Court of Appeal upholding the 2023 High Court ruling on25 July 2024, the Trustee initiated the process of investigating any potential impact for the Fund. The Pension Schemes Act 2026 (the 'Act'), passed into law on 29 April 2026, has subsequentlyintroduced legislation that provides pension schemes that are missing necessary S37 certificates amechanism to obtain retrospective certification. To do so, the scheme actuary would be required toprovide written confirmation that it is reasonable to conclude that amendments to a pension scheme'srules within the relevant period would not have prevented the scheme from continuing to satisfy thereference scheme test. The Act does not set a deadline for schemes to have used the mechanism by.Following the mechanism introduced by the Act to obtain retrospective confirmations, the Group and theTrustee do not expect the Virgin Media ruling to give rise to any additional liabilities. The Group has other post-employment benefit obligations outside the UK that amounted to £1.8 million(2025: £1.9m). Principal risks and uncertaintiesThe Group is subject to both internal and external risk factors to its business and has a well-establishedset of risk management procedures. The following risks and uncertainties are those that the Directorsbelieve could have the most significant impact on the Group's business: · Changing market, customer and consumer dynamics;· Disruption to systems and processes;· Financing risk;· Safe and high-quality products;· Health and safety;· Climate change and environmental concerns;· Challenges in attracting and retaining talent;· Increased regulation;· Economic, political and macro environment instability; and· Business transformation challenges. Consolidated Income StatementYear ended 30 June 2026 2026 2025 Adjusted Adjustingitems Total Adjusted Adjustingitems TotalNote £m £m £m £m £m £m Revenue 3 934.2 - 934.2 926.5 - 926.5Cost of sales (589.7) -(589.7) (584.4) - (584.4)Gross profit 344.5 - 344.5 342.1 - 342.1Distribution costs (87.7) - (87.7) (85.5) - (85.5)Administrative costs (197.7) (8.9)(206.6) (191.1) (5.9) (197.0)(Impairment)/reversal ofimpairment of property,plant and equipment (0.1) - (0.1) 0.6 - 0.6
Page 11
Operating profit/(loss) 59.0 (8.9) 50.1 66.1 (5.9) 60.2Finance costs 6 (10.2) - (10.2) (11.2) - (11.2) Profit/(loss) beforetaxation 48.8 (8.9) 39.9 54.9 (5.9) 49.0 Taxation 7 (12.1) 2.2 (9.9) (17.3) 1.5 (15.8) Profit/(loss) for the year 36.7 (6.7) 30.0 37.6 (4.4) 33.2 Earnings per ordinary shareattributable to the owners of theparent during the year 8 Basic earnings per share 17.7p 19.5pDiluted earnings per share 16.9p 18.6p Consolidated Statement of Comprehensive IncomeYear ended 30 June 2026 2026 2025£m £m Profit for the year 30.0 33.2Other comprehensive income/(expense) Items that may be reclassified to profit or loss: Currency translation differences of foreign subsidiaries 1.7 0.8Gain on net investment hedges 0.7 0.1Gain/(loss) on cash flow hedges in the year 0.4 (0.6)Cash flow hedges transferred to profit or loss (0.5) (0.6)Taxation relating to the items above 1.7 (0.2) 4.0 (0.5) Items that will not be reclassified to profit or loss: Net actuarial gain/(loss) on post‑employment benefits 0.5 (1.2) Taxation relating to the items above (0.1) 0.3 0.4 (0.9)Total other comprehensive income/(expense) 4.4 (1.4) Total comprehensive income 34.4 31.8 Consolidated Balance SheetAt 30 June 2026 2026 2025Note £m £mNon-current assets Goodwill 10 19.8 19.8Other intangible assets 10 28.3 18.3Property, plant and equipment 10 123.5 120.3Derivative financial instruments 11 0.1 0.3Right-of-use assets 10 5.7 7.9Deferred tax assets 41.2 38.2 218.6 204.8 Current assets Inventories 132.6 123.4Trade and other receivables 142.2 139.1Current tax assets 1.1 3.6Derivative financial instruments 11 0.5 0.2Cash and cash equivalents 12 65.2 34.2 341.6 300.5Total assets 560.2 505.3 Current liabilities Trade and other payables 220.9 228.0Borrowings 11 76.8 69.8Lease liabilities 11 2.2 3.7Derivative financial instruments 11 0.3 0.4Current tax liabilities 9.0 7.2Provisions 14 1.5 2.7310.7 311.8 Non-current liabilities Borrowings 11 105.1 61.3Lease liabilities 11 3.9 4.6Derivative financial instruments 11 - 0.1Pensions and other post-employment benefits 13 19.9 24.9Provisions 14 2.4 1.6Deferred tax liabilities 7.1 6.7 138.4 99.2 Total liabilities 449.1 411.0Net assets 111.1 94.3 Equity Issued share capital 16 17.4 17.4Share premium account 68.6 68.6Other reserves 80.5 75.8
Page 12
Accumulated losses (55.4) (67.5) Total equity 111.1 94.3 Consolidated Cash Flow StatementYear ended 30 June 2026 2026 2025Note £m £mOperating activities Profit before tax 39.9 49.0Finance costs 10.2 11.2Exceptional items excluding finance costs 4 7.6 4.0Share-based payments charge 1.6 1.6Depreciation of property, plant and equipment 10 16.9 15.8Depreciation of right-of-use assets 10 4.1 3.9Loss on disposal of property, plant and equipment 0.4 0.4Amortisation of intangible assets 10 1.3 1.9Impairment/(Reversal of impairment) of property, plant and equipment 0.1 (0.6) Operating cash flow before changes in working capital,exceptional items and additional pension funding 82.1 87.2 (Increase)/decrease in receivables (2.3) 9.9Increase in inventories (8.4) (2.4)(Decrease)/Increase in payables (9.0) 6.2Operating cash flow after changes in working capital beforeexceptional items and additional pension funding 62.4 100.9 Additional cash funding of pension scheme (5.7) (7.0)Cash generated from operations before exceptional items 56.7 93.9Cash outflow in respect of exceptional items (7.6) (3.2) Cash generated from operations 49.1 90.7Interest paid (7.3) (7.9)Refinancing costs paid (0.6) (1.8)Taxation paid (7.8) (17.9) Net cash generated from operating activities 33.4 63.1 Investing activitiesPurchase of property, plant and equipment (20.0) (20.0)Purchase of intangible assets (11.2) (10.4)Settlement of derivatives used in net investment hedges 0.3 0.4 Net cash used in investing activities (30.9) (30.0) Financing activitiesDrawdown/(repayment) of overdrafts 12 1.2 (9.8)Drawdown of other loans 12 5.8 11.5Repayment of bank loans 12 (65.2) (65.0)Drawdown of bank loans 12 108.9 61.1Repayment of IFRS 16 lease obligations 12 (4.5) (4.2)Purchase of B Shares (0.1) -Dividends paid (5.2) -Purchase of own shares through the EBT (6.4) (2.4)Buyback of own shares (6.4) -Net cash generated from/(used in) financing activities 28.1 (8.8) Increase in net cash and cash equivalents 30.6 24.3Net cash and cash equivalents at the start of the year 34.2 9.3Currency translation differences 0.4 0.6 Net cash and cash equivalents at the end of the year 65.2 34.2 Consolidated Statement of Changes in EquityYear ended 30 June 2026 Otherreserves Issuedsharecapital£m Sharepremiumaccount£m Cash flowhedgereserve£m Currencytranslationreserve£m Capitalredemptionreserve£m Accumulatedlosses£m Totalequity£mAt 1 July 2025 17.4 68.6 (1.2) (0.2) 77.2 (67.5) 94.3 Profit for the year - - - - - 30.0 30.0Other comprehensiveincome/(expense) Items that may be reclassified to profit orloss: Currency translation differences of foreignsubsidiaries - - - 1.7 - - 1.7 Gain on net investment hedges - - - 0.7 - - 0.7Gain on cash flow hedges in the year - - 0.4 - - - 0.4Cash flow hedges transferred to profit orloss - - (0.5) - - - (0.5) Taxation relating to the items above - - 1.7 - - - 1.7
Page 13
- - 1.6 2.4 - - 4.0Items that will not be reclassified to profitor loss: Net actuarial loss on post‑employmentbenefits - - - - - 0.5 0.5 Taxation relating to the items above - - - - - (0.1) (0.1) - - - - - 0.4 0.4Total other comprehensive income - - 1.6 2.4 - 0.4 4.4 Total comprehensive income - - 1.6 2.4 - 30.4 34.4 Transactions with owners of the parent Redemption of B Shares - - - - 0.1 (0.1) -Shares issued to the EBT 0.4 - - - - (0.4) -Purchase of own shares through the EBT - - - - - (6.4) (6.4)Buyback of own shares (0.4) - - - 0.4 (6.4) (6.4)Dividends - - - - - (5.2) (5.2)Transfers between reserves - - 0.1 0.1 - (0.2) -Share-based payments - - - - - 1.6 1.6Taxation relating to the items above - - - - - (1.2) (1.2) At 30 June 2026 17.4 68.6 0.5 2.3 77.7 (55.4) 111.1 Otherreserves Issuedsharecapital£m Sharepremiumaccount£m Cash flowhedgereserve£m Currencytranslationreserve£m Capitalredemptionreserve£m Accumulatedlosses£m Totalequity£mAt 1 July 2024 17.4 68.6 0.2 (1.1) 77.2 (98.9) 63.4 Profit for the year - - - - - 33.2 33.2Other comprehensiveincome/(expense)Items that may be reclassified to profit orloss:Currency translation differences of foreignsubsidiaries - - - 0.8 - - 0.8 Gain on net investment hedges - - - 0.1 - - 0.1Loss on cash flow hedges in the year - - (0.6) - - - (0.6)Cash flow hedges transferred to profit orloss - - (0.6) - - - (0.6) Taxation relating to the items above - - (0.2) - - - (0.2) - - (1.4) 0.9 - - (0.5) Items that will not be reclassified to profitor loss: Net actuarial loss on post‑employmentbenefits - - - - - (1.2) (1.2) Taxation relating to the items above - - - - - 0.3 0.3 - - - - - (0.9) (0.9) Total other comprehensive(expense)/income - - (1.4) 0.9 - (0.9) (1.4) Total comprehensive (expense)/income - - (1.4) 0.9 - 32.3 31.8 Transactions with owners of the parentPurchase of own shares - - - - - (2.4) (2.4)Share-based payments - - - - - 1.6 1.6Taxation relating to the items above - - - - - (0.1) (0.1)At 30 June 2025 17.4 68.6 (1.2) (0.2) 77.2 (67.5) 94.3 At 30 June 2026, the accumulated losses include a deduction of £6.1 million (2025: £4.2m) for the costof own shares held in relation to employee share schemes. Notes to the Consolidated Financial Information 1. Corporate informationMcBride plc (the 'Company') is a public company limited by shares incorporated and domiciled in theUnited Kingdom and registered in England and Wales. The Company's ordinary shares are listed on theLondon Stock Exchange. The registered office of the Company is Middleton Way, Middleton,Manchester M24 4DP. The Company and its subsidiaries (together, the 'Group') is Europe's leading manufacturer and supplierof private label and contract manufactured products for the domestic household and professionalcleaning/hygiene markets. The Group develops and manufactures products for retailers and brandowners in Europe and the Asia-Pacific region. 2. Material accounting policies Basis of preparationThe financial information does not constitute statutory accounts of the Group for the years ended 30June 2026 and 2025 within the meaning of sections 434(3) and 435(3) of the Companies Act 2006 orcontain sufficient information to comply with the disclosure requirements of IFRS. The financialinformation for 2025 is derived from the statutory accounts for 2025 which have been delivered to theRegistrar of Companies.
Page 14
The statutory accounts for the year ended 30 June 2026 have been reported on by the Company'sauditors, PricewaterhouseCoopers LLP, and will be delivered to the Registrar of Companies in duecourse. The auditors have reported on those statutory accounts; their report was (i) unqualified, (ii) didnot include a reference to any matters to which the auditors drew attention by way of emphasis withoutqualifying their report and (iii) did not contain a statement under Section 498 (2) or (3) of the CompaniesAct 2006. The financial information has been prepared on the going concern basis in accordance with UK-adoptedInternational Financial Reporting Standards and with the requirements of the Companies Act 2006 asapplicable to companies reporting under those standards. The financial statements have been preparedunder the historical cost convention, modified in respect of the revaluation to fair value of financialassets and liabilities (derivative financial instruments) either through other comprehensive income orprofit or loss, assets held for sale and defined benefit pension scheme assets. The financial informationhas been prepared applying accounting policies that were applied in the preparation of the Company'spublished consolidated financial statements for the year ended 30 June 2025. Going concernThe Group's base case forecasts are based on the Board-approved budget and three-year plan. Theyindicate sufficient liquidity, debt cover and interest cover throughout the going concern review period toensure compliance with current banking covenants. The Group's base case scenario assumes:· average revenue growth of c.4% per annum (2027 to 2029), driven predominantly by volumeincreases;· raw material input costs growing at levels consistent with expected revenue growth;· interest rates reducing in line with current market expectations; and· a Sterling to Euro exchange rate of £1:€1.15. The Directors have considered the Group's principal risks with the highest likelihood of occurrence orthe severest impact, and the adverse effect this would have on the Group's financial forecasts.Changing market, customer and consumer dynamics could adversely impact revenue growth. Lack ofsupply chain resilience influences raw material and packaging input costs. Economic, political andmacro environment instability potentially affects both revenue growth and input costs, in addition tomarket interest rates and foreign exchange rates. Considering these risks, a severe but plausibledownside scenario to stress test the Group's financial forecasts has been modelled, with the followingassumptions:· a 5% year-on-year reduction in revenue in 2027;· revenue growth reducing to 1% in 2028 and 2029, being half of the Group's long-term target of 2%;· an increase in raw material and packaging input costs compared to latest forecasts;· interest rates increasing by 100 basis points; and· Sterling appreciating significantly against the Euro to £1:€1.25. In the event that such a severe but plausible downside risk scenario occurs, the Group would remaincompliant with current banking covenants. After reviewing the current liquidity position and financial forecasts, stress testing for potential risks andconsidering the uncertainties described above, and based on the currently committed funding facilities,the Directors have a reasonable expectation that the Group has sufficient resources to continue inoperational existence and without significant curtailment of operations for the foreseeable future. Forthese reasons the Directors continue to adopt the going concern basis of accounting in preparing theGroup financial statements. Viability statementIn accordance with the requirements of the UK Corporate Governance Code 2024, the Directors haveperformed a robust assessment of the principal risks facing the Group, including those that wouldthreaten its business model, future performance, solvency or liquidity. The Board has determined that athree-year period to 30 June 2029 constitutes an appropriate period over which to provide its viabilitystatement. The strategic plan under the Group's Compass strategy is based on detailed action plansdeveloped by the Group with specific initiatives and accountabilities; there is inherently less certainty inthe projections for years four and five. The Group has a €240 million multi‑currency, sustainability-linked RCF with a tenor to November 2029,as well as access to a further €35 million remaining within the accordion feature, and a number offacilities whereby it could borrow against certain of its trade receivables. In the UK, the Group had a £20million facility. In Spain, France and Belgium, the Group had an unlimited facility. In Germany andDenmark, the Group had a €45 million facility, committed until December 2029. In Italy, the Group had a€23 million facility, committed until April 2028. The Group is negotiating new facilities for France andSpain to renew the commitment until November 2029 and is also negotiating the commitment forBelgium with the current provider. The Group can borrow from the provider of the relevant facility up tothe lower of the facility limit and the value of the respective receivables. Trade receivables amounting to£73.6 million (2025: £67.8m) are secured under the invoice discounting facilities as at 30 June 2026. The Group's strategic plan assumes that financing facilities will be available on an appropriate basis andas required to meet the Group's capital investment and growth strategies for the entire viability period. In assessing the Group's viability, the Directors have considered the current financial position of theGroup and its principal risks and uncertainties. The analysis considers a severe but plausible downsidescenario, featuring the principal risks from a financial and operational perspective, with the resultingimpact on key metrics, such as liquidity headroom and covenants. The downside risk scenario assumessensitivity around exchange rates and interest rates, along with significant reductions in revenue andcash flow over the three-year period. The Group's global footprint, product diversification and access toexternal financing all provide resilience against these factors and the other principal risks to which theGroup is exposed.
Page 15
Whilst the Group ends the year with net current liabilities of £31.1 million (2025: £11.3m), the Directorsconclude that the Group has sufficient financing facilities to support this position. After conducting their viability review, the Directors confirm that they have a reasonable expectation thatthe Group will be able to continue in operation and meet its liabilities as they fall due over the three‑yearperiod of their assessment to 30 June 2029. Critical accounting judgements and key sources of estimation uncertainty The preparation of the consolidated financial statements from which this preliminary announcement isderived requires management to make judgements, estimates and assumptions that affect theapplication of accounting policies and the reported assets, liabilities, income and expenses. Actualresults may differ from these estimates. The significant judgements made by management in applyingthe Group's accounting policies and the key sources of estimation uncertainty were the same as thoseapplied to the consolidated financial statements for the year ended 30 June 2025. 3. Segment information Segmental reporting Financial information is presented to the Board by business division for the purposes of allocatingresources within the Group and assessing the performance of the Group. There are five separatelymanaged and accountable business divisions. The European business is managed as four divisionsbased on product technology and the Asia Pacific division is based on geography: · Liquids;· Unit Dosing;· Powders;· Aerosols; and· Asia Pacific. Intra-group revenue from the sale of products is agreed and reconciled between the relevant customer-facing units and eliminated in the segmental presentation that is presented to the Board and thereforeexcluded from the reported figures. Most overhead costs are directly attributed within the respectivedivisions' income statements. Central overheads are allocated to a reportable segment proportionally using an appropriate cost driverand include costs of certain Group functions (mostly associated with financial disciplines such astreasury). Corporate costs are reported separately and include the costs associated with the Board andthe Executive Leadership Team, governance and being a listed company. Exceptional items are detailedin note 4 and are not allocated to the reportable segments as this reflects how they are reported to theBoard. Finance expense and income are not allocated to the reportable segments, as the GroupTreasury function manages this activity, together with the overall net debt position of the Group. The Board uses adjusted operating profit to measure the profitability of the Group's businesses.Adjusted operating profit is, therefore, the measure of segment profit presented in the Group's segmentdisclosures. Adjusted operating profit represents operating profit before specific items that areconsidered to hinder comparison of the trading performance of the Group's businesses either year onyear or with other businesses. During the years under review, the items excluded from operating profit inarriving at adjusted operating profit were the amortisation of intangible assets and exceptional items. Liquids UnitDosingPowdersAerosols AsiaPacificCorporate Group Year ended 30 June 2026 £m £m £m £m £m £m £m Revenue 526.0 226.3 88.7 67.3 25.9 - 934.2Adjusted operatingprofit/(loss) 31.4 23.8 5.7 3.6 1.3 (6.8) 59.0 Amortisation of intangibleassets (1.3) Exceptional items (note 4) (7.6) Operating profit 50.1Finance costs (note 6) (10.2) Profit before taxation 39.9 Inventories 63.6 37.9 14.9 12.5 3.7 - 132.6Capital expenditure 16.8 7.4 3.5 2.2 1.1 - 31.0Amortisation anddepreciation 11.8 6.9 1.2 0.8 1.6 - 22.3 Liquids UnitDosing Powders Aerosols AsiaPacificCorporate Group Year ended 30 June 2025 £m £m £m £m £m £m £m Revenue 529.6 228.9 85.5 58.9 23.6 - 926.5 Adjusted operatingprofit/(loss) 41.0 22.5 6.8 3.1 1.1 (8.4) 66.1 Amortisation of intangibleassets (1.9) Exceptional items (note 4) (4.0)Operating profit 60.2Finance costs (note 6) (11.2)
Page 16
Profit before taxation 49.0 Inventories 58.0 37.5 13.6 11.6 2.7 - 123.4Capital expenditure 14.6 10.8 1.9 2.6 0.8 - 30.7Amortisation anddepreciation 11.4 7.0 1.3 0.5 1.4 - 21.6 Geographical information Revenue Non-current assets 2026 2025 2026 2025 £m £m £m £m United Kingdom 166.6 179.8 57.9 47.5 Germany 231.1 217.2 - - France 202.9 203.7 13.1 10.9 Italy 68.1 74.1 14.5 14.8 Spain 47.5 44.7 9.7 9.8 Other Europe 187.0 180.1 79.5 80.2 Asia Pacific 27.5 24.7 2.6 3.1 Rest of the World 3.5 2.2 - - Total 934.2 926.5 177.3 166.3 The geographical revenue information above is based on the location of the customer. Non-current assets for this purpose consists of goodwill, other intangible assets, property, plant andequipment and right-of-use assets. Revenue by major customerIn 2026 and 2025, no individual customer provided more than 10% of the Group's revenue. During2026, the top ten customers accounted for 54% of total Group revenue (2025: 53%). 4. Exceptional items Analysis of exceptional items 2026 2025£m £m Strategic partnership costs 1.6 -Acquisition costs 2.1 -ERP integration 2.2 -Environmental remediation 1.0 0.4Group-wide review of growth options 0.7 2.1Organisation changes - 1.5 Total charged to operating profit 7.6 4.0 Total exceptional items before tax 7.6 4.0 Total exceptional items of £7.6 million were recorded during the year (2025: £4.0m). The chargecomprised the following:· £1.6 million costs associated with the strategic partnership with Vestacy;· £2.1 million costs relating to due diligence and acquisition costs associated with the acquisition ofEurotab;· £2.2 million costs relating to the disruption, integration and assurance costs of the SAP S/4HANAimplementation;· £1.0 million (2025: £0.4m) costs relating to the re-evaluation of the long-term environmentalremediation provision at Estaimpuis;· £0.7 million (2025: £2.1m) costs relating to a Group-wide strategic review of growth options; and· £nil (2025: £1.5m) employee severance costs in relation to organisational changes aimed atenhancing long-term operational efficiency and capability in line with the Group's strategy. 5. Operating profitOperating profit is stated after charging/(crediting): 2026 2025£m £m Cost of inventories (included in cost of sales)* 516.7 515.2Employee costs 169.4 162.8Amortisation of intangible assets (note 10) 1.3 1.9Depreciation of property, plant and equipment (note10) 16.9 15.8 Depreciation of right-of-use assets (note 10) 4.1 3.9Loss on disposal of property, plant and equipment 0.4 0.4Impairment/(reversal of impairment): Property, plant and equipment (note 10) 0.1 (0.6)Inventories 4.0 2.4Trade receivables 1.0 0.4Expense relating to short-term leases 0.1 0.2Expense relating to low-value leases 0.2 0.1Research and development costs not capitalised 10.3 9.8Net foreign exchange gain (0.1) (0.1) *Direct material costs only.
Page 17
6. Finance costs 2026 2025£m £m Finance costs Interest on bank loans and overdrafts 7.2 8.3Interest on lease liabilities 0.4 0.4Net foreign exchange loss/(gain) 0.3 (0.4)Amortisation of facility fees 0.4 1.0Non-utilisation and other fees 0.7 0.7 Adjusted finance costs excluding net interest cost on defined benefitobligation 9.0 10.0 Post-employment benefits: Net interest cost on defined benefit obligation (note 13) 1.2 1.2 Adjusted finance costs 10.2 11.2Total finance costs 10.2 11.2 Interest rate derivatives are used to manage the interest rate profile of the Group's borrowings.Accordingly, interest income from interest rate caps of £0.3 million (2025: £0.2m) is included in intereston bank loans and overdrafts. No interest costs were capitalised in the current year (2025: £nil). 7. TaxationIncome tax expense 2026 2025 Total attributable to ordinary UK Overseas Total UK Overseas Totalshareholders £m £m £m £m £m £m Current tax expense/(credit) Current year 0.4 12.1 12.5 0.4 10.2 10.6Adjustment for prior years - (0.4) (0.4) - (0.1) (0.1) 0.4 11.7 12.1 0.4 10.1 10.5Deferred tax expense/(credit) Origination and reversal oftemporary differences (2.7) 0.2 (2.5) 1.4 1.1 2.5Adjustment for prior years 0.2 0.1 0.3 2.2 0.6 2.8 (2.5) 0.3 (2.2) 3.6 1.7 5.3 Income tax expense (2.1) 12.0 9.9 4.0 11.8 15.8 Included in the current tax adjustment for the prior year is £0.1 million credit (2025: £0.5m credit)relating to the release of provisions for uncertain tax treatments due to expiries in the statute oflimitations. Reconciliation to UK statutory tax rateThe total tax charge on the Group's profit before tax for the year is lower (2025: higher) than the amountthat would be charged at the UK standard rate of corporation tax for the following reasons: 2026 2025Total attributable to ordinary shareholders £m £m Profit before tax 39.9 49.0 Profit before tax multiplied by the UK corporation tax rate of 25.0% (2025: 25.0%) 10.0 12.3Effect of tax rates in foreign jurisdictions 0.3 0.5Non-deductible expenses 0.9 0.2Non-taxable income (1.2) -Other differences - 0.1Adjustment for prior years (0.1) 2.7 Total tax charge in profit or loss 9.9 15.8Exclude adjusting items (note 19) 2.2 1.5 Total tax charge in profit or loss before adjusting items 12.1 17.3 The taxation is provided at current rates on the profits earned for the year. There have been no changesin applicable tax rates that have impacted the current year tax charge. The main rate of UK corporation tax applicable for the financial year is 25.0% (2025: 25.0%). 8. Earnings per ordinary shareBasic earnings per ordinary share is calculated by dividing the profit for the year attributable to ownersof the Company by the weighted average number of the Company's ordinary shares in issue during thefinancial year. The weighted average number of the Company's ordinary shares in issue excludes6,097,071 shares (2025: 3,587,465 shares), being the weighted average number of own shares heldduring the year in relation to employee share schemes. Reference 2026 2024 Weighted average number of ordinary shares in issue (million) a 169.7 170.5Effect of dilutive share options (million) 8.2 8.0 Weighted average number of ordinary shares for calculatingdiluted earnings per share (million) b 177.9 178.5 Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares inissue assuming the conversion of all potentially dilutive ordinary shares. Where potentially dilutive
Page 18
ordinary shares would cause an increase in earnings per share, or a decrease in loss per share, thediluted loss per share is considered equal to the basic loss per share. During the year, the Company had equity-settled awards with a nil exercise price that are potentiallydilutive ordinary shares. Adjusted earnings per share measures are calculated based on profit for the year attributable to ownersof the Company before adjusting items as follows: 2026 2025Reference £m £m Profit for calculating basic and diluted earnings per share c 30.0 33.2Adjusted for: Amortisation of intangible assets (note 10) 1.3 1.9Exceptional items (note 4) 7.6 4.0Taxation relating to the items above (2.2) (1.5) Profit for calculating adjusted earnings per share d 36.7 37.6 2026 2025Reference pence pence Basic earnings per share c/a 17.7 19.5Diluted earnings per share c/b 16.9 18.6 Adjusted basic earnings per share d/a 21.6 22.1 Adjusted diluted earnings per share d/b 20.6 21.1 9. Shareholder returns DividendsDividends paid and received are included in the Company financial statements in the year in which therelated dividends are actually paid or received or, in respect of the Company's final dividend for the year,approved by shareholders. The Board confirmed its intention to reinstate annual dividends in February 2025. A final dividend for theyear ended 30 June 2025 of 3.0 pence per ordinary share, costing approximately £5.2 million, inaggregate, was approved at the 2025 Annual General Meeting and paid in November 2025. The Board is recommending a final dividend of 3.1 pence per ordinary share for the year ended 30 June2026. This is subject to approval by shareholders at the Company's 2026 AGM and has therefore notbeen recognised in these financial statements. If approved, the recommended final dividend will be paidas a cash dividend on 27 November 2026 to all holders of ordinary shares who are on the register ofmembers on 30 October 2026. The ordinary shares will be marked as ex-dividend on 29 October 2026. Other than the final dividend for the year ended 30 June 2025 and the final dividend for the year ended30 June 2026 proposed above, no dividend payments to ordinary shareholders were made or proposedin respect of this year or the prior year. Share buyback/redemptionsOn 1 December 2025, the Company commenced a share buyback programme of up to £20 million inMcBride plc ordinary shares. The maximum number of ordinary shares that may be repurchased by theCompany under the programme is 17,401,528. Ordinary shares repurchased under the share buybackprogramme will be cancelled. During the period to 30 June 2026, the Company repurchased 4,479,384 ordinary shares of 10 penceeach, representing approximately 2.5% of the issued ordinary share capital as at 30 June 2026. Theshares were acquired at an average price of 142.6 pence per share, with prices ranging from 119.6pence per share to 160 pence per share. The total cost of £6.4 million, excluding transaction costs, wasdeducted from equity. At 30 June 2026, all repurchased shares had been cancelled, with the exceptionof 228,894 shares which were cancelled across 1 and 2 July 2026. Since the period end, the Companyhas repurchased and cancelled further ordinary shares under the share buyback programme. B Shares issued but not redeemed are classified as current liabilities. During the period to 30 June2026, the Company redeemed certain B Shares. Movements in the number of B Shares outstandingwere as follows: NominalNumber value000 £'000 At 1 July 2024 and 30 June 2025 665,888 666 Redeemed (71,278) (71)At 30 June 2026 594,610 595 B Shares carry no rights to attend, speak or vote at Company meetings, except on a resolution relatingto the winding up of the Company. Employee Benefit Trust (EBT) fundingDuring the period to 30 June 2026, the EBT purchased 5,282,881 ordinary shares. The Companyprovided £6.4 million of funding to the EBT to for these purchases, which will reduce equity dilution inthe Company on future vesting of incentive awards. Additionally, the EBT increased its holding through asubscription of new shares at par value (4,502,575 ordinary shares), totalling £0.4 million. 10. Intangible assets, property, plant and equipment and right-of-use assetsGoodwill
Page 19
and other Property, intangible plant and Right-of-useassets equipment assets£m £m £mNet book value at 1 July 2025 38.1 120.3 7.9Currency translation differences - 0.8 0.1Additions 11.2 19.8 1.8Disposal of assets 0.1 (0.4) -Impairment - (0.1) -Depreciation charge - (16.9) (4.1)Amortisation charge (1.3) - - Net book value at 30 June 2026 48.1 123.5 5.7 Included within goodwill and other intangible assets is goodwill of £19.8 million (2025: £19.8m),computer software of £2.0 million (2025: £2.9m) and assets under development of £26.1 million (2025:£15.2m). Assets under development consist mainly of computer software under development. Capital commitments at 30 June 2026 amounted to £3.4 million (2025: £3.6m). At 30 June 2026, the Group was committed to future minimum lease payments of £0.5 million (2025:£0.5m) in respect of leases which have not yet commenced and for which no lease liability has beenrecognised. 11. Financial risk managementThe Group's activities expose it to a variety of financial risks: market risk (including currency risk, fairvalue interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. There have been no material changes in the Group's risk management policies in either the 30 June2026 or 30 June 2025 financial years. The table below analyses financial instruments carried at fair value, by valuation method. The differentlevels have been defined as follows: · Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities;· Level 2 - inputs other than Level 1 that are observable for the asset or liability, either directly (prices)or indirectly (derived from prices); and· Level 3 - inputs that are not based on observable market data (unobservable inputs). At At 30 June 30 June 2026 2025 £m £m Level 2 assets Derivative financial instruments Forward currency contracts 0.5 0.2 Interest rate collars/caps 0.1 0.3 Total financial assets 0.6 0.5Level 2 liabilities Derivative financial instruments Forward currency contracts (0.3) (0.4) Interest rate collars - (0.1) Total financial liabilities (0.3) (0.5) Total 0.3 - Derivative financial instrumentsDerivative financial instruments comprise the foreign currency derivatives and interest rate derivativesthat are held by the Group in designated hedging relationships. Foreign currency forward contracts are measured by reference to prevailing forward exchange rates.Foreign currency options are measured using a variant of the Monte Carlo valuation model. Interest ratecollars are measured by discounting the related cash flows using yield curves derived from prevailingmarket interest rates. Valuation levels and techniquesThere were no transfers between levels during the year and no changes in valuation techniques. Financial assets and liabilities measured at amortised costThe fair value of borrowings (including overdrafts and lease liabilities) are as follows: At At 30 June 30 June 2026 2025 £m £mCurrent 79.0 73.5Non-current 109.0 65.9 Total borrowings 188.0 139.4 The fair value of the following financial assets and liabilities approximate to their carrying amount:
Page 20
· trade and other receivables;· other current financial assets;· cash and cash equivalents; and· trade and other payables. 12. Net debtMovements in net debt were as follows: IFRS 16 Currency At 1 July non-cash Cash translation At 30 June2025movements(1) flows differences 2026 £m £m £m £m £m Overdrafts (2.0) - (1.2) - (3.2)Bank loans (61.3) - (43.7) (0.1) (105.1)Other loans (67.8) - (5.8) - (73.6)Lease liabilities (8.3) (2.2) 4.5 (0.1) (6.1) Financial liabilities (139.4) (2.2) (46.2) (0.2) (188.0)Cash and cash equivalents 34.2 - 30.6 0.4 65.2Net debt (105.2) (2.2) (15.6) 0.2 (122.8) 1IFRS 16 non-cash movements includes additions of £1.8 million (2025: £3.6m), disposals of £nil (2025: £nil) andinterest charged of £0.4 million (2025: £0.4m). 13. Pensions and other post-employment benefitsThe Group provides a number of post-employment benefit arrangements. In the UK, the Group operatesa closed defined benefit pension scheme and a defined contribution pension scheme. Elsewhere inEurope, the Group has a number of smaller post-employment benefit arrangements that are structuredto accord with local conditions and practices in the countries concerned. The Group also recognises theassets and liabilities for all members of the defined contribution scheme in Belgium, accounting for thewhole defined contribution section as a defined benefit scheme under IAS 19, 'Employee Benefits'.There is a remote risk the underpin will require the Group to pay further contributions to the scheme. At 30 June 2026, the Group recognised a deficit on its UK defined benefit pension scheme of £18.1million (2025: £23.0m). The Group's net post-employment benefit obligations outside the UK amountedto £1.8 million (2025: £1.9m). Non-governmental collected post-employment benefits had the following effect on the Group's resultsand financial position: 2026 2025£m £m Profit or lossOperating profitDefined contribution schemes Contributions payable (3.7) (3.4)Defined benefit schemes Service cost and administration expenses (net of employeecontributions) (0.5) (0.3) Net charge to operating profit (4.2) (3.7)Finance costsNet interest cost on defined benefit obligation (1.2) (1.2)Net charge to profit before taxation (5.4) (4.9) Other comprehensive income/(expense) Defined benefit schemes Net actuarial gain/(loss) 0.5 (1.2) 2026 2025 £m £m Balance sheet Defined benefit obligations UK - funded (96.2) (97.8)Other - unfunded (11.1) (11.0) (107.3) (108.8)Fair value of scheme assets UK - funded 78.1 74.8Other - unfunded 9.3 9.1 Deficit on the schemes (19.9) (24.9) In the UK, the Robert McBride Pension Fund (the 'Fund') provides pension benefits based on the finalpensionable salary and period of qualifying service of the participating employees. The UK definedbenefit fund was closed to future service accrual from 29 February 2016. Staff affected by this changewere offered a new defined contribution scheme from that date. The Trustee of the Fund is Entrust Pension Limited (the 'Trustee'), which acts in accordance with theterms of a governing Trust Deed and relevant legislation. Regular assessments of the Fund's benefitobligations are carried out by an independent actuary on behalf of the Trustee and long-termcontribution rates are agreed between the Trustee and the Company on the basis of the actuary'srecommendations.
Page 21
Following the triennial valuation as at 31 March 2024, McBride and the Trustee agreed a new deficitreduction plan based on the scheme funding deficit of £32.3 million. A total amount of £7.0 million waspaid in the year ended 30 June 2025, being a £5.3 million annual deficit reduction contribution, plus a£1.7 million 'one-off' payment for the removal of the Trustee's dividend matching mechanism. It wasagreed that, from 1 July 2025, £5.7 million per annum is payable until 30 June 2028 and, from 1 July2028, deficit reduction contributions revert to the previous agreement of 1 October 2024, with £4.0million payable per annum, plus up to £1.7 million per annum in conditional profit-related contributions,which are determined as follows: • If adjusted operating profit exceeds £35.0 million, additional annual deficit contributions of £1.7million will be due the following year.• If adjusted operating profit is below £30.0 million then no profit-related contributions will be due thefollowing year.• If adjusted operating profit is between £30.0 million and £35.0 million, a proportion of the £1.7 millioncontribution will be due the following year, with incremental increases of £0.34 million of additionalcontributions for each whole £1.0 million of adjusted operating profit in excess of £30.0 million. 14. Provisions Reorganisationand LeaseholdEnvironmentalrestructuringdilapidations remediation Claims Other Total£m £m £m £m £m £m At 1 July 2024 0.3 0.5 2.8 - - 3.6Transfer from otherpayables* - - - 0.6 - 0.6 Charged/(released) to profitor loss 0.2 (0.1) 0.4 0.2 - 0.7 Currency translationdifferences (0.1) - - - - (0.1) Utilisation - (0.1) (0.4) - - (0.5) At 30 June 2025 0.4 0.3 2.8 0.8 - 4.3Transfer from otherpayables* - - - - 0.4 0.4 Charged/(released) to profitor loss - - 1.0 (0.5) - 0.5 Currency translationdifferences - - - - - - Utilisation (0.2) - (1.1) - - (1.3) At 30 June 2026 0.2 0.3 2.7 0.3 0.4 3.9 Analysis of provisions: 2026 2025£m £m Current 1.5 2.7Non-current 2.4 1.6 Total 3.9 4.3 *Transfer of claims and other provisions from other payables to provisions. The closing provision for reorganisation and restructuring relates to the Group's logistics Transformationprogramme. The provision is expected to be fully utilised within twelve months of the balance sheetdate. The leasehold dilapidations provision relates to costs expected to be incurred to restore leasedproperties to their original condition at the end of the respective lease terms. A provision has beenrecognised for the present value of the estimated expenditure required to undertake restoration works.Amounts will be utilised as the respective leases end and restoration works are carried out, with £0.1million expected to be utilised within twelve months. The environmental remediation provision relates to historical environmental contamination at a site inBelgium. The additional costs in the year of £1.0 million relate to a re-evaluation of the cost ofenvironmental remediation. The closing provision is expected to be utilised as the land is restored withina period of approximately ten years, with £0.8 million expected to be utilised within twelve months. The claims provision relates to expected costs associated with outstanding legal and regulatory claims.The closing balance is expected to be utilised after more than twelve months. The other provision relates to expected costs regarding the Extended Producer Responsibility regulatorypolicy around packaging. The closing balance is expected to be utilised within twelve months. The amount and timing of all cash flows related to the provisions are reasonably certain. 15. Exchange ratesThe principal exchange rates used to translate the results, assets and liabilities and cash flows of theGroup's foreign operations into Sterling were as follows: Average rate Closing rate 2026 2025 2026 2025Euro 1.15 1.19 1.16 1.17US Dollar 1.34 1.29 1.32 1.37
Page 22
Danish Krone 8.60 8.88 8.67 8.72Polish Zloty 4.89 5.07 4.98 4.96Malaysian Ringgit 5.49 5.70 5.40 5.77Australian Dollar 1.98 2.00 1.92 2.10 16. Share capital Authorised, allotted andfully paidNumber £m Ordinary shares of 10 pence each At 1 July 2024 and 30 June 2025 174,057,328 17.4Shares issued to EBT 4,502,575 0.4 Shares bought back on-market and cancelled (4,250,490) (0.4) At 30 June 2026 174,309,413 17.4 Ordinary shares carry full voting rights and ordinary shareholders are entitled to attend Companymeetings and to receive payments to shareholders. On 1 December 2025, the Company commenced a share buyback programme of up to £20 million inMcBride plc ordinary shares. The maximum number of ordinary shares that may be repurchased by theCompany under the programme is 17,401,528. Ordinary shares repurchased under the share buybackprogramme will be cancelled. During the period to 30 June 2026, the Company repurchased 4,479,384 ordinary shares, representing2.5% of the issued ordinary share capital as at 30 June 2026. The shares were acquired at an averageprice of 142.6 pence per share, with prices ranging from 119.6 pence per share to 160 pence per share.The total cost of £6.4 million, excluding transaction costs, was deducted from equity. At 30 June 2026,all repurchased shares had been cancelled, with the exception of 228,894 shares which were cancelledacross 1 and 2 July 2026. Consequently, 4,250,490 ordinary shares were repurchased and cancelledduring the period to 30 June 2026. Since the period end, the Company has repurchased and cancelledfurther ordinary shares under the share buyback programme. In addition, the EBT purchased 5,282,881 ordinary shares. The Company provided £6.4 million offunding to the EBT for these purchases, which will reduce equity dilution in the Company on futurevesting of incentive awards. The EBT also increased its holding through a subscription of new shares atpar value (4,502,575 ordinary shares), totalling £0.4 million. 17. Related party transactionsTransactions between the Company and its subsidiaries, which are related parties of the Company,have been eliminated on consolidation and therefore are not required to be disclosed in these financialstatements. Details of transactions between the Group and other related parties are disclosed below. Post-employment benefit plansContributions amounting to £9.4 million (2025: £10.4m) were payable by the Group to pension schemesestablished for the benefit of its employees. At 30 June 2026, £0.6 million (2025: £0.6m) in respect ofcontributions due was included in other payables. Compensation of key management personnelFor the purposes of these disclosures, the Group regards its key management personnel as theDirectors and certain members of the senior executive team. Compensation relating to key management personnel in respect of their services to the Group was asfollows: 2026 2025£m £m Short-term employee benefits 2.7 3.1Post-employment benefits 0.1 0.1Share-based payments 1.0 1.0 Total 3.8 4.2 18. Key performance indicators (KPIs)Management uses a number of KPIs to measure the Group's performance and progress against itsstrategic objectives. The most important of these are noted and defined below: Financial:· Revenue: Revenue from contracts with customers from the sale of goods is measured at the invoicedamount, net of sales rebates, discounts, value added tax and other sales taxes.· Adjusted operating profit: Adjusted operating profit is operating profit excluding amortisation ofintangible assets and exceptional items.· Adjusted EBITDA margin: The calculation of adjusted EBITDA, which when divided by revenue givesthis EBITDA margin, is defined in note 19.· Free cash flow: Free cash flow is defined as cash generated from operations before exceptionalitems.· Adjusted ROCE: Total adjusted operating profit divided by the average of opening and closing capitalemployed. Capital employed is defined as the total of goodwill and other intangible assets, property,plant and equipment, right-of-use assets, inventories, and trade and other receivables, less tradeand other payables.· Transformation benefits: Net profit benefit achieved from the implementation of the Transformationprogrammes.
Page 23
Non-financial:· Lost time incident frequency rate: The number of lost time incidents x 100,000 divided by totalnumber of person-hours worked.· Customer service level: The volume of products delivered in the correct volumes and withinrequested timescales, as a percentage of total volumes ordered by customers. 19. Alternative performance measures (APMs)The performance of the Group is assessed using a variety of adjusted measures that are not definedunder IFRS and are therefore termed non-GAAP measures. The non-GAAP measures used areadjusted operating profit, adjusted EBITDA, adjusted finance costs, adjusted profit before tax, adjustedprofit for the year, adjusted earnings per share, free cash flow and cash conversion %, adjusted ROCE,liquidity, net debt, net debt cover ratio (banking basis) and interest cover ratio (banking basis). Therationale for using these measures, along with a reconciliation from the nearest measures prepared inaccordance with IFRS, are presented below. The alternative performance measures used may not bedirectly comparable with similarly titled measures used by other companies. Adjusted measures exclude specific items that are considered to hinder comparison of the tradingperformance of the Group's businesses either year on year or with other businesses. This presentationis consistent with the way that financial performance is measured by management and reported to theBoard and Executive Committee, and is used for internal performance analysis and in relation toemployee incentive arrangements. The Directors present these adjusted measures in the financialstatements in order to assist investors in their assessment of the trading performance of the Group.Directors do not regard these measures as a substitute for, or superior to, the equivalent measurescalculated and presented in accordance with IFRS. During the years under review, the items excluded from operating profit in arriving at adjusted operatingprofit were the amortisation of intangible assets and exceptional items. Exceptional items andamortisation are excluded from adjusted operating profit because they are not considered to berepresentative of the trading performance of the Group's businesses during the year. A reconciliation for each non-GAAP measure to the most directly comparable IFRS measure is set outbelow. Adjusted operating profit and adjusted EBITDAAdjusted operating profit is operating profit before amortisation of intangible assets and exceptionalitems. Adjusted EBITDA means adjusted operating profit before depreciation. A reconciliation betweenadjusted operating profit, adjusted EBITDA and the Group's reported statutory operating profit is shownbelow: 2026 2025£m £m Operating profit 50.1 60.2Exceptional items in operating profit (note 4) 7.6 4.0Amortisation of intangibles (note 10) 1.3 1.9Adjusted operating profit 59.0 66.1Depreciation of property, plant and equipment (note 10) 16.9 15.8Depreciation of right-of-use assets (note 10) 4.1 3.9Adjusted EBITDA 80.0 85.8 Adjusted profit before tax and adjusted profit for the yearAdjusted profit before tax is based on adjusted operating profit less adjusted finance costs. Adjustedprofit for the year is based on adjusted profit before tax less taxation relating to non-adjusting items. Thetable below reconciles adjusted profit before tax to the Group's reported profit before tax.2026 2025£m £m Profit before tax 39.9 49.0Exceptional items (note 4) 7.6 4.0Amortisation of intangibles (note 10) 1.3 1.9 Adjusted profit before tax 48.8 54.9Taxation on adjusted profit before tax (note 7) (12.1) (17.3) Adjusted profit for the year 36.7 37.6 Adjusted earnings per shareAdjusted earnings per share is based on the Group's profit for the year adjusted for the items excludedfrom operating profit in arriving at adjusted operating profit, and the tax relating to those items. Free cash flow and cash conversion %Free cash flow is one of the Group's KPIs by which financial performance is measured. It is primarily aliquidity measure; however, free cash flow and cash conversion % are also important indicators ofoverall operational performance as they reflect the cash generated from operations. Free cash flow isdefined as cash generated from operations before exceptional items. Cash conversion % is defined asfree cash flow as a percentage of adjusted EBITDA (applicable only when adjusted EBITDA is positive).A reconciliation from net cash generated from operating activities, the most directly comparable IFRSmeasure to free cash flow, is set out as follows: 2026 2025£m £mNet cash generated from operating activities 33.4 63.1Add back: Taxation paid 7.8 17.9
Page 24
Interest paid 7.3 7.9Refinancing costs paid 0.6 1.8Cash outflow in respect of exceptional items 7.6 3.2 Free cash flow 56.7 93.9 Adjusted EBITDA 80.0 85.8 Cash conversion % 71% 109% Adjusted return on capital employed (ROCE)Adjusted ROCE serves as an indicator of how efficiently returns are generated from the capital investedin the business. It is a Group KPI that allows management to evaluate the outcome of investmentdecisions. Adjusted ROCE is defined as total adjusted operating profit divided by the average of openingand closing capital employed. Capital employed is defined as the total of goodwill and other intangibleassets, property, plant and equipment, right-of-use assets, inventories, trade and other receivables lesstrade and other payables. There is no equivalent statutory measure within IFRS. Adjusted ROCE iscalculated as follows: 2026 2025 2024£m £m £mGoodwill (note 10) 19.8 19.8 19.7Other intangible assets (note 10) 28.3 18.3 9.8Property, plant and equipment (note 10) 123.5 120.3 114.4Right-of-use assets (note 10) 5.7 7.9 8.1Inventories 132.6 123.4 119.6Trade and other receivables 142.2 139.1 148.8Trade and other payables (220.9) (228.0) (220.1) Capital employed 231.2 200.8 200.3 Average of opening and closing capital employed 216.0 200.6 200.2Adjusted operating profit 59.0 66.1 67.1 Adjusted ROCE % 27.3% 33.0% 33.5% LiquidityLiquidity means, at any time, without double counting, the aggregate of:(a) cash;(b) cash equivalents;(c) the available facility at that time, which comprises the headroom available in the RCF andother committed facilities; and(d) the aggregate amount available for drawing under uncommitted facilities. The Company uses this measure to manage cash flow. 2026 2025 £m £m Cash and cash equivalents 65.2 34.2RCF headroom 100.6 107.2Other committed facilities 1.8 - Liquidity 167.6 141.4 Net debtNet debt consists of cash and cash equivalents, overdrafts, bank and other loans and lease liabilities. Net debt is a key indicator used by management to assess the Group's indebtedness and overallbalance sheet strength. Net debt is an alternative performance measure as it is not defined in IFRS. A reconciliation from loansand other borrowings, lease liabilities and cash and cash equivalents, the most directly comparableIFRS measures to net debt, is set out below: 2026 2025£m £m Current assets Cash and cash equivalents 65.2 34.2Current liabilities Borrowings (76.8) (69.8)Lease liabilities (2.2) (3.7)(79.0) (73.5)Non-current liabilities Borrowings (105.1) (61.3)Lease liabilities (3.9) (4.6) (109.0) (65.9) Net debt (122.8) (105.2) Net debt cover ratio (banking basis)The net debt cover ratio (banking basis) is an indicator of the Company's ability to repay its debts. Underthe RCF, it is calculated as net debt (as defined in the RCF agreement) divided by EBITDA (as defined
Page 25
in the RCF agreement). The Company uses the ratio to ensure compliance with the RCF financialcovenants that will be tested half-yearly. 2026 2025£m £mNet debt (as defined above) (122.8) (105.2)Invoice discounting facilities 73.6 67.8B Shares (note 9) (0.6) (0.7)Lease liabilities 6.1 8.3Adjustment for average exchange rates (0.2) (0.8) Net debt banking basis (as defined in the RCF agreement) (43.9) (30.6) Adjusted EBITDA 80.0 85.8Net interest cost on defined benefit obligation (note 6) (1.2) (1.2)Loss on disposal of property, plant and equipment (note 10) 0.4 0.4 EBITDA banking basis (as defined in the RCF agreement) 79.2 85.0 Net debt cover ratio (banking basis) 0.6x 0.4x Interest cover ratio (banking basis)The interest cover ratio (banking basis) is a measure of the Company's ability to pay the interest on itsoutstanding debts. Under the RCF, it is calculated as EBITDA (as defined in the RCF agreement)divided by adjusted finance costs (excluding net interest cost on defined benefit obligation). TheCompany uses the ratio to ensure compliance with the RCF financial covenants that will be tested half-yearly. 2026 2025£m £m EBITDA banking basis (as defined in the RCF agreement) 79.2 85.0 Adjusted finance costs excluding net interest cost on definedbenefit obligation (note 6) 9.0 10.0 Interest cover ratio (banking basis) 8.8x 8.5x 20. Events after the reporting dateAcquisition of EurotabOn 1 July 2026, the Group acquired 100% of the share capital of Eurotop SAS, the owner of EurotabGroup ('Eurotab') for a consideration of €40.8 million (including cash acquired of c.€8 million), of which€31.3 million relates to third-party indebtedness repayments. Eurotab is a leading, privately owned specialist in the design and manufacture of solid‑format cleaningand hygiene solutions, primarily serving private label and certain contract manufacturing markets. Itprovides precision powder compaction technology supporting a diverse tablet format-based productrange, including automatic dishwasher tablets, moisture-absorbing solutions and disinfecting bleachtablets. Eurotab has two specialised manufacturing sites in France and a smaller business supplying themarket in Turkey from its facility located near Istanbul. The acquisition is in line with the Group's growth strategy and is anticipated to further strengthenMcBride's position as a leading detergent producer in Europe. The transaction will deepen relationshipswith certain existing customers and will also provide the opportunity to develop the Turkish operation asa platform for expanding the Group's manufacturing capabilities and for accessing new target marketsover time. Whilst a preliminary assessment of fair values has not been finalised, the net assets acquired includeproperty, plant and equipment and working capital. A fair value assessment is in the process of beingperformed and this, along with the other requirements of IFRS 3, 'Business Combinations', will bereported in the Group's Half-Year Report and Financial Statements for the year to 30 June 2027. Vestacy contract manufacturingOn 28 August 2026, the Group announced a strategic partnership securing two long-term contractmanufacturing agreements with E.H. Group B.V. ('Vestacy'). As part of this partnership, McBride hassigned a share purchase agreement to acquire two dedicated manufacturing facilities located in Spainand Portugal for a nominal consideration. The contract manufacturing agreements, which have a duration of between five and eight years, will seethe Group manufacture a variety of household products for Vestacy, with the majority of these productsfocused on laundry markets, a target strategic growth category for the Group. To optimise efficiency andproximity to geographical markets, production volumes will be distributed across the two newly acquiredsites, together with existing McBride sites in Belgium, Italy, Poland, UK and France. Under the terms of the master agreement, over the next two years, Vestacy will fund most of theadditional equipment required for capacity needs across the McBride production network, totalling €40.0million. This structure minimises the upfront capital requirement for the Group while securing long-term,manufacturing volumes. Over the same period, McBride will be responsible for c.€14.0 million oftransition and project costs, alongside approximately €6.0 million of specific capital expenditure over thenext two years. The Board expects this transaction to be materially earnings accretive, significantly advancing theGroup's strategic and financial objectives. These new arrangements will increase the proportion of
Page 26
contract manufacturing in the Group's total revenue. Profit margins are expected to be in line withexisting McBride levels, delivering EPS growth consistent with revenue growth. Group's net debt isexpected to increase by up to £25.0 million at its peak during the second half of financial year 2028,reflecting the investment in capacity expansion, associated working capital requirements and transitioncosts. The incremental investment is expected to be funded from the Group's existing facilities and cashflow from operations. The delivery of these new revenues will be multi-phased. Completion of the acquisition and transfer ofthe two factories from Vestacy to McBride is anticipated early in calendar year 2027, with the newcapacity across the designated Group sites expected to be fully operational early in calendar year 2028. A fair value assessment will be performed and this, along with the other requirements of IFRS 3,'Business Combinations', will be reported in the Group's Financial Statements for the year to 30 June2027. 21. Additional information Annual General Meeting The Annual General Meeting will be held on 19 November 2026. Annual Report and Accounts The Annual Report and Accounts will be published on the McBride plc website by no later than 9October 2026. Reflecting McBride's commitment to the environment, a small number of printed copieswill be sent to shareholders in October 2026, on a 'by request only' basis. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END