Private label product maker McBride said it was positive on the upcoming year with consumers increasingly turning to 'own brand' labels.

However, it said it would cut the full year dividend to 5.0p per share from 6.8p the year before.

The firm said this was necessary "to maximise the cash available for investment in additional organic Private Label growth, and to ensure that dividend cover remains appropriate".

The move took the City by surprise and investors piled out of the stock.

The firm said trading since the end of June was in line with expectations as it unveiled full year revenues and profits that up slightly on the year before.

One analyst at Panmure Gordon wrote "the decision to rebase the dividend from 6.8p to 5.0p is likely to surprise investors given that the balance sheet remains robust and should improve from 2.0x Net debt EBITDA in full year 2012".

Revenues for the year to the end of June rose £1.5m to £813.9m, while pre-tax profits were up to £21.8m from £19.4m the previous year.

UK divisional revenue increased by 1% to £315.2m, with core and future growth product category sales growing by 5%.

Western Continental Europe divisional revenue remained flat at £405.9m, while Central and Eastern Europe divisional revenue dropped 3% to £135.6m.

High-flying plant hire firm Ashtead has raised profits guidance again as its new financial year got off to a strong start.

Underlying profit before tax in the quarter ended July 31st rose 82%, or 76% on a constant currency (CC) basis, to £61.4m from £33.8m the year before.

Statutory profit before tax was up 5%, or 2% in CC terms, to £34.9m from £33.1m a year earlier; the statutory profit figure includes exceptional financing costs of £18m (of which £13m were cash costs) related to the redemption of senior secured notes, and also includes a non-cash charge of £7m relating to the revaluation of the fair value of early repayment options in the company's long-term debt.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 38%, or 34% on a CC basis, to £129.3m from £93.9m in the corresponding three-month period of 2011, with group EBITDA margins pushing on to 40% from 35% a year earlier.

Underlying earnings per share (EPS) soared 82% to 7.7p from 4.3p the year before, while statutory EPS hardened 8% to 4.5p from 4.2p.

Revenue rose 21% (CC: +18%) to £325.0m from £268.6m in the same quarter of 2011.

"The markets in which we operate have performed as anticipated with gently improving conditions in the US and a more challenging outlook in the UK. We do not anticipate any significant changes to this environment in the short term," revealed Ashtead's Chief Executive, Geoff Drabble.

"Against this back-drop our continued market share gains are again reflected in our strong growth in fleet on rent and improving margins demonstrate our operational efficiency. Given the momentum established in the business, we now anticipate a full year result materially ahead of our previous expectations," Drabble said.

Ashtead is making a habit of raising profits guidance, having done so as recently as June 21st.

JH

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