| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 69.42 | -57 |
| Intrinsic value (DCF) | 42.99 | -73 |
| Graham-Dodd Method | 1.35 | -99 |
| Graham Formula | 1.37 | -99 |
McBride plc is a leading manufacturer of private-label household and personal care products, serving retailers and brand owners across the UK, Europe, and the Asia-Pacific region. Operating through five key segments—Liquids, Powders, Unit Dosing, Aerosols, and Asia Pacific—the company produces a diverse range of products, including laundry detergents, dishwasher tablets, surface cleaners, and personal care items under brands like Surcare and Oven Pride. Founded in 1927 and headquartered in Manchester, UK, McBride has established itself as a trusted contract manufacturer for major retailers, leveraging cost efficiencies and private-label demand growth. The company operates in the Consumer Defensive sector, benefiting from stable demand for essential household goods. With a market cap of approximately £258 million, McBride plays a critical role in the value chain of discount and private-label retail, a segment that has gained traction amid inflationary pressures.
McBride plc presents a mixed investment case. On the positive side, the company benefits from resilient demand for private-label household products, a trend amplified by cost-conscious consumers. Its diversified product portfolio and contract manufacturing capabilities provide steady revenue streams. However, the company operates in a highly competitive, low-margin industry with significant exposure to input cost volatility. While its recent net income of £33.3 million and operating cash flow of £59.2 million indicate operational stability, its elevated beta (1.271) suggests higher market risk. The lack of dividends may deter income-focused investors. Long-term prospects hinge on McBride’s ability to maintain cost discipline and expand in higher-growth regions like Asia Pacific.
McBride plc competes in the private-label household and personal care market, where cost efficiency and retailer relationships are critical. Its primary competitive advantage lies in its scale as one of Europe’s largest private-label manufacturers, allowing it to offer competitive pricing and reliable supply to retailers. The company’s diversified product range across liquids, aerosols, and unit dosing provides cross-segment stability. However, McBride faces intense competition from larger multinationals like Henkel and Reckitt Benckiser, which have stronger brands and greater R&D resources. Unlike these rivals, McBride does not invest heavily in consumer marketing, instead relying on retailer partnerships. Regional competitors, such as Spotless Group in the UK, also pressure margins. McBride’s focus on private labels differentiates it from branded players but exposes it to retailer consolidation risks. Its debt load (£140.8 million) is manageable but limits financial flexibility compared to cash-rich competitors. The Asia Pacific segment offers growth potential but requires further investment to compete with local players.