Interim Results

McBride PLC
30 March 2001

30 March 2001



                                 McBride plc



          Interim results for the six months ended 31 December 2000



McBride is Europe's leading supplier of household and personal care retailer
brand products and Europe's leading independent retailer brand and contract
supplier of OTC pharmaceuticals.



Highlights




*        Sales grew by 4.2% in local currency terms



*        Sterling reported sales of £247.8 million up 1.9%



*        Progress in core household and personal care sectors assisted by
         recovery in private label demand



*        Margins reduced by raw material, packaging and fuel price inflation
         exacerbated by the Euro's weakness against the US Dollar



*        Operating profit £11.5 million before goodwill amortisation and share
         of joint venture


*        Profit before taxation, goodwill amortisation and share of the joint
         venture  £7.0 million


*        Basic earnings per share 2.8p before share of joint venture and
         goodwill amortisation


*        Given reduced profitability for the year to date the Board has
         decided to wait until the year end before recommending the level of    
         dividend


*        Discussions continue regarding options to enhance shareholder value
         and an announcement will be made when appropriate





Commenting on the results, Mike Handley, Chief Executive said:



'Although market conditions in both the UK and Continental Europe continue to
be challenging, a number of measures have been implemented to improve sales
volumes, increase sales revenues and ensure all costs remain tightly
controlled. Despite these actions the Board believes that the results for the
year ending 30 June 2001 are likely to fall short of current market
expectations.



We believe that the cycle of oil-related chemical input cost increases has
already peaked and this should be reflected in future results. The last peak
in 1995/96 had a similar impact.



On 26 September 2000 McBride announced that it had received a number of
preliminary enquiries from interested parties concerning a possible offer for
the company. Discussions are continuing and whilst there can be no certainty
at this stage that any transaction will result, an announcement will be made
as further developments occur.'





For further information please contact:




Financial Dynamics                                   020 7831 3113
Fiona Meiklejohn

BSMG Worldwide                direct                 020 7841 5542
David Walker                  switchboard            020 7841 5555





INTERIM REVIEW



In the first six months of the financial year McBride's sales were £247.8
million, an increase of 1.9% compared with the first half of the previous
year.  Allowing for the effect of currency movements, underlying sales growth
was 4.2%.  In its core private label product sectors, McBride's underlying
growth was 6.5%, the difference reflecting the continuing reduction in
contract manufacturing activities.



Volume trends were generally healthy in all markets, but especially in
Continental Europe and internationally where several important new contracts
were won.  Private label experienced a renewed upturn in demand among all
leading retailers after a static period between 1999 and 2000 when heavy
promotion of manufacturer brands temporarily halted the long term growth
pattern of private label.



There were also important new product developments in which McBride played a
leading role.  The new tablet format for laundry detergents, which has been a
key area of investment for McBride, came close to taking a 30% share of the UK
laundry detergent market, displacing traditional standard powders.
Concentrated liquids and powders, again a key feature of recent McBride
investment, also saw improved levels of demand.



Despite an improved level of sales, increases in the prices of raw materials,
packaging and fuel, coming at the same time as competitive pressure in the
main markets, eroded margins and profitability.  This was exacerbated by
adverse currency movements particularly affecting raw materials priced in US
Dollars.



Group operating profit before goodwill amortisation and the contribution from
the Aerosol Products Limited joint venture was £11.5 million compared with £
17.2 million in the previous half year. The major part of this profit
shortfall was caused by input cost inflation. Given the reduced profitability
for the year to date, the Board has decided to wait until the full results for
the year ending 30 June 2001 before recommending the level of dividend for the
year. Discussions continue regarding options to enhance shareholder value and
an announcement will be made when appropriate.



United Kingdom



Sales were £136.7 million compared with  £135.7 million in the first half of
last year, including a performance above expectations from Wrafton
Laboratories which was acquired in September 1999.  Wrafton's sales were £15.4
million compared with £6.8 million for the three month period from October to
December 1999.  In the household products sector core sales rose 2.5%, while
in personal care core sales rose 4.5%.



Private label resumed its long-term growth pattern and achieved new records in
market share during the second half of calendar year 2000. In household
products, private label's share rose from 23.0% to 23.8%. Within the household
market sector tablets, concentrated liquids and powders all increased, playing
to McBride's strengths following recent investment.  Machine dishwash also
increased share.  Fabric conditioners, washing up liquid, household cleaners
and toilet care were broadly stable.  These gains in the household sector were
partly offset by a 1% decline in private label's share of the personal care
market but McBride's 4.5% increase in core personal care sales reflected a
credible increase in share of the available market.



Total operating profit in the UK, before goodwill amortisation and share of
the Aerosol Products Limited joint venture, was  £8.2 million compared with £
9.2 million in the first half of the previous year, including £2.3 million
from Wrafton Laboratories compared with £0.8 million for the period October to
December 1999.  Margins in household and personal care were affected by higher
raw material, packaging, warehousing and transport costs.   Expansion and
reorganisation at Wrafton's OTC pharmaceuticals business, which included the
application of the private label skills of the Group, delivered a very
satisfactory increase in operating profits.  During the first half of the year
McBride bought the shares of two retiring directors to bring the total holding
in Wrafton to 92.5% by 31 December 2000.



Continental Europe



Sales in Continental Europe were £111.1 million compared with £115.2 million
in the first half of the previous year.  In local currency terms core sales
grew by 1.1%.  In the household sector sales grew 0.8%, underpinned by good
sales growth in France and Belgium where the private label market was much
improved, but offset by declines in Holland and Italy where heavy brand
promotions continued to restrict private label growth.  Personal care sales
grew 3.5%, again with encouraging performances in France, Belgium and Poland
but broadly static in Holland and Italy.



As in the UK, private label and minor brand market growth resumed after a
static period.  Tablets and concentrates stood out in all countries as the
main growth feature.  In Poland and other Central and Eastern Europe (CEE)
countries the market is still at an early stage of development. However,
relationships continued to strengthen with many of the Western European
retailers who are investing heavily in these countries and encouraging their
established private label suppliers to partner with them.



Operating profit before goodwill amortisation was £3.3 million compared with £
8.0 million in the first half last year.  Continental Europe experienced
greater margin pressure than that affecting the UK, resulting from higher raw
material, fuel and transport costs.  However, the principal contributory
factor was the continuing adverse effect of the weak Euro on petro-chemical
and pulp prices, which added significantly to the input costs.  While many
steps have been taken within the business to recover the operating margin, it
has been necessary to raise selling prices on many products.  These price
increases are being progressively implemented during the second half of the
financial year.



Joint Venture



The Aerosol Products Limited joint venture with Nichol Beauty Products saw a
significant improvement in the level of customer service during the first half
of the financial year.  However, there were availability problems together
with price increases on certain key packaging and raw material items in the
October to December period.  The combination of these costs, and those
incurred to rebuild satisfactory customer service levels, resulted in the need
to increase selling prices during early 2001.  Lower than expected sales
volumes combined with cost pressures resulted in the company incurring a loss
in the period.  McBride's share of this loss was  £1.3 million before goodwill
amortisation and interest. The Company will benefit from more stable customer
service and the expectation of improved sales volumes with many customers.



Financial Summary



In the first six months of the financial year net interest costs were £4.5
million compared with £2.5 million for the comparative period of last year.
The rise of £2.0 million was due to increased borrowings required to fund
recent acquisitions together with the effect of reduced cash generation and
higher interest rates for both Sterling and the Euro.  The charge for
taxation, which amounts to £1.7 million, has been calculated at 25% which is
the same percentage rate as last year and represents the estimated effective
rate for the current financial year.



Capital expenditure in the first half of the year was £8.7 million compared
with £9.5 million for the comparative period last year.  The main items of
capital expenditure were additional manufacturing equipment to support the
growth in demand for automatic dishwash and textile tablets together with a
new mixing installation for the Polish factory to meet the continuing growth
in demand for their range of liquid products.



Cash flow from operating activities was £16.0 million compared with £24.5
million in the first half of last year, which reflected lower operating
profits and an increase in working capital.  Net debt of £123.6 million at the
end of December 2000 compared with £115.0 million at June 2000 and £105.0
million at December 1999.



Equity shareholders funds at 31 December 2000 increased to £71.0  million
compared with £68.3 million at June 2000 and £63.3 million at December 1999.



Outlook



Although market conditions in both the UK and Continental Europe continue to
be challenging, a number of measures have been implemented to improve sales
volumes, increase sales revenues and ensure all costs remain tightly
controlled. Customer service levels are being sustained at significantly
improved levels throughout the business. In the UK, increased customer
promotions are expected in the second half of the year while in Continental
Europe price increases are being implemented across a wide range of products.
All these actions are expected to deliver an improvement in financial
performance in the second versus the first half of the financial year.  The
Board believes that the cycle of oil-related chemical input cost increases has
already peaked, and this should be reflected in future results, although the
results for the year ending 30 June 2001 are likely to fall short of current
market expectations.



On 26 September 2000 McBride announced that it had received a number of
preliminary enquiries from interested parties concerning a possible offer for
the company.  Discussions are continuing and whilst there can be no certainty
at this stage that any transaction will result, an announcement will be made
as further developments occur.  In addition the Board continues to examine all
possible options to enhance shareholder value.





Consolidated profit and loss account


                                                Unaudited Unaudited    Audited
                                                 6 months  6 months Year ended
                                                       to        to
                                                   31 Dec    31 Dec    30 June
                                                     2000      1999       2000
                                          Note         £m        £m         £m

Turnover:Group and share of  joint                  257.6     255.2      511.1
venture
Less: share of joint venture's turnover             (9.8)     (4.3)     (14.3)
                                                    247.8     250.9      496.8
Group turnover excluding
business transferred to J.V.                        247.8     243.1      489.0
UK Aerosol activities transferred to J.V.               -       7.8        7.8
Group turnover                              1       247.8     250.9      496.8

Cost of sales                                     (158.6)   (156.9)    (311.5)
Gross profit                                         89.2      94.0      185.3
Distribution costs                                 (12.7)    (11.7)     (23.3)
Administrative costs                               (65.0)    (65.1)    (129.5)
Group operating profit before
goodwill amortisation                       1        11.5      17.2       32.5
Goodwill amortisation                               (1.0)     (0.5)      (1.5)
Group operating profit                               10.5      16.7       31.0

Share of joint venture's operating loss
before
goodwill amortisation                               (1.3)     (0.1)      (2.2)
Goodwill amortisation on joint venture              (0.2)     (0.1)      (0.2)
Share of joint venture's operating loss             (1.5)     (0.2)      (2.4)

Profit on disposal of fixed assets                      -         -        3.4
Loss on transfer of business to joint                   -     (2.8)      (2.9)
venture
Group interest receivable and similar                 0.1         -        0.2
charges
Group interest payable and similar                  (4.6)     (2.5)      (6.6)
charges
Share of joint venture's net interest
payable
and similar charges                                 (0.4)         -      (0.4)
Profit on ordinary activities before                  4.1      11.2       22.3
taxation

Tax on profit on ordinary activities        2       (1.7)     (3.7)      (6.5)
Profit on ordinary activities after                   2.4       7.5       15.8
taxation

Equity minority interest                            (0.3)     (0.2)      (0.4)
Profit for the period                                 2.1       7.3       15.4

Dividends                                             0.0     (4.6)      (8.2)
Retained profit for the period                        2.1       2.7        7.2

Earnings per ordinary share (pence)
*         Basic and diluted                           1.2       4.1        8.7
*         Basic before operating
exceptional items,
 share of joint venture and goodwill                  2.8       6.1       10.8
amortisation





Consolidated balance sheet


                                           Unaudited     Unaudited      Audited
                                           31 Dec 2000 31 Dec 1999 30 June 2000
                                     Note           £m          £m           £m
Fixed assets

Intangible assets                                 29.7        27.2         26.5
Tangible assets                                  153.4       146.7        153.8
Investment in joint venture                        7.3         7.6          7.5
Total fixed assets                               190.4       181.5        187.8

Current assets
Stocks                                            58.6        58.6         59.0
Debtors                                           95.9        93.3        104.8
Cash at bank in hand                               4.1         1.0          8.2
                                                 158.6       152.9        172.0
Creditors: amounts falling due
within one year                                (145.4)     (160.3)      (167.4)
Net current assets                                13.2       (7.4)          4.6

Total assets less current                        203.6       174.1        192.4
liabilities

Creditors: amount falling due after
more than one year                             (124.2)     (104.4)      (116.8)
Provisions for liabilities and                   (0.9)       (2.9)        (0.9)
charges

Investment in joint venture
   Share of gross assets                           7.5        13.1         10.5
   Share of gross liabilities                   (14.3)      (15.5)       (15.7)
   Net investment in joint venture               (6.8)       (2.4)        (5.2)
Net assets                                        71.7        64.4         69.5


Capital and reserves

Called up share capital                           17.8        17.8         17.8
Share premium account                            139.3       139.3        139.3
Profit and loss account                5        (86.1)      (93.8)       (88.8)
Equity shareholders' funds                        71.0        63.3         68.3

Equity minority interest                           0.7         1.1          1.2
Net assets                                        71.7        64.4         69.5






Consolidated cash flow statement


                                              Unaudited   Unaudited     Audited
                                            6 months to 6 months to  Year ended
                                            31 Dec 2000 31 Dec 1999     30 June
                                                                           2000
                                      Note           £m          £m          £m
Cash flow from operating activities     6          16.0        24.5        43.0

Returns on investments and servicing
of
Finance                                           (4.8)       (2.3)       (6.2)
Taxation                                          (1.9)       (0.5)       (5.3)
Operating cash flow after taxation
and finance costs                                   9.3        21.7        31.5
Capital expenditure                               (8.7)       (9.5)      (21.9)
Acquisitions                                      (6.6)      (22.7)      (24.5)
Equity dividends paid                             (3.6)       (8.9)      (13.5)
Financing                                           7.3        15.7        28.8
Increase/(decrease) in cash in the                (2.3)       (3.7)         0.4
period






Reconciliation of net cash flow to movement in net debt


                                              Unaudited  Unaudited     Audited
                                               6 months   6 months  Year ended
                                                     to         to
                                                 31 Dec     31 Dec     30 June
                                                   2000       1999        2000
                                                     £m         £m          £m
Increase/(decrease) in cash in the period         (2.3)      (3.7)         0.4
Cash outflow from movement in debt
and lease financing                               (7.3)     (15.7)      (28.8)
Change in net debt resulting from cash flows      (9.6)     (19.4)      (28.4)
Loans and finance leases acquired with                -      (2.6)       (2.6)
subsidiary
Translation differences                             1.0        3.3         2.3
Movement in net debt in the period                (8.6)     (18.7)      (28.7)
Net debt at the beginning of the period         (115.0)     (86.3)      (86.3)
Net debt at the end of the period               (123.6)    (105.0)     (115.0)







Consolidated statement of total recognised gains and losses


                                           Unaudited    Unaudited       Audited
                                         6 months to  6 months to    Year ended
                                         31 Dec 2000  31 Dec 1999  30 June 2000
                                                  £m           £m            £m
Profit after tax                                 2.1          7.3          15.4
Unrealised foreign currency differences          0.6        (0.7)         (0.2)
Total recognised gains and losses                2.7          6.6          15.2







Reconcilation of movements in shareholders' funds


                                              Unaudited   Unaudited     Audited
                                            6 months to 6 months to  Year ended
                                            31 Dec 2000 31 Dec 1999     30 June
                                                                           2000
                                                     £m          £m          £m
Profit for the financial year                       2.1         7.3        15.4
Equity dividends                                    0.0       (4.6)       (8.2)
Retained profit                                     2.1         2.7         7.2
Unrealised foreign currency differences             0.6       (0.7)       (0.2)
Goodwill written back to profit and loss              -        10.4        10.4
account
Opening equity shareholders' funds                 68.3        50.9        50.9
Closing shareholders' funds                        71.0        63.3        68.3








Notes to the interim financial statements



1) Segmental information


                                                Unaudited  Unaudited    Audited
                                                 6 months   6 months Year ended
                                                       to         to
                                                   31 Dec     31 Dec    30 June
                                                     2000       1999       2000
                                                       £m         £m         £m

Turnover by destination is analysed
by geographical area as follows:
UK                                                  135.0      131.9      269.5
Continental Europe                                  110.4      116.6      223.0
Rest of world                                         2.4        2.4        4.3
                                                    247.8      250.9      496.8
Share of joint venture's turnover                     9.8        4.3       14.3
                                                    257.6      255.2      511.1
Turnover by geographical origin is analysed as
follows:
UK                                                  136.7      135.7      274.4
Continental Europe                                  111.1      115.2      222.4
                                                    247.8      250.9      496.8
Share of joint venture's turnover                     9.8        4.3       14.3
                                                    257.6      255.2      511.1
Turnover by class of business is analysed as
follows:
Household products                                  199.3      203.0      406.6
Personal care products                               33.1       41.1       71.7
Pharmaceuticals                                      15.4        6.8       18.5
                                                    247.8      250.9      496.8
Share of joint venture's turnover                     9.8        4.3       14.3
                                                    257.6      255.2      511.1





1) Segmental information continued




                                               Unaudited  Unaudited     Audited
                                                6 months   6 months  Year ended
                                                      to         to
                                                  31 Dec     31 Dec     30 June
                                                    2000       1999        2000
                                                      £m         £m          £m

Operating profit by geographical origin is
analysed
as follows:
UK                                                   7.3        8.7        17.7
Continental Europe                                   3.2        8.0        13.3
Operating profit                                    10.5       16.7        31.0
Share of joint venture after goodwill              (1.9)      (0.2)       (2.8)
Non operating items                                    -      (2.8)         0.5
Net interest payable                               (4.5)      (2.5)       (6.4)
Profit on ordinary activities before tax             4.1       11.2        22.3
Operating profit by class of business is
analysed
as follows:
Household products                                   8.2       15.1        28.5
Personal care products                               0.4        1.0         1.4
Pharmaceuticals                                      1.9        0.6         1.1
Operating profit                                    10.5       16.7        31.0
Share of joint venture after goodwill              (1.9)      (0.2)       (2.8)
Non operating items                                    -      (2.8)         0.5
Net interest payable                               (4.5)      (2.5)       (6.4)
Profit on ordinary activities before tax             4.1       11.2        22.3







2) Tax on profit on ordinary activities

The Group tax charge is calculated at 25% of the profit before taxation
excluding non taxable deductions, being the estimated effective rate of tax
for the year to 30 June 2001.



3) Earnings per ordinary share

Earnings per ordinary share is calculated on profit after tax in accordance
with FRS 14. The calculation of earnings per ordinary share for the six months
ended 31 December 2000 is based on 177,639,197 ordinary shares of 10p each
which was the number of ordinary shares in issue at 30 June 2000 and at 31
December 1999. The weighted average number of shares in issue at 31 December
1999 and 30 June 2000 was 177,639,197.



4) Profit and loss account


                                         Unaudited       Unaudited      Audited
                                           6 months to 6 months to   Year Ended
                                           31 Dec 2000 31 Dec 1999 30 June 2000
                                                    £m          £m           £m
Goodwill reserve                               (146.4)     (146.4)      (146.4)
Profit and loss account                           60.3        52.6         57.6
                                                (86.1)      (93.8)       (88.8)

5) Reconciliation of operating profit to operating
cash flow

                                         Unaudited       Unaudited      Audited
                                           6 months to 6 months to   Year Ended
                                           31 Dec 2000 31 Dec 1999 30 June 2000
                                                    £m          £m           £m
Group operating profit                            10.5        16.7         31.0
Depreciation                                       9.0         8.8         16.6
Other non cash items                                 -           -          0.7
Goodwill amortisation                              1.0         0.5          1.5
Movement in stocks                                 0.1       (7.8)        (7.7)
Movement in debtors                                1.7       (2.1)        (8.3)
Movement in creditors                            (6.3)         8.4          9.2
Cash flow from operating activities               16.0        24.5         43.0




6) Unaudited half year results

The results for the half year ended 31 December 2000 and 31 December 1999 are
unaudited and have been prepared on the basis of accounting policies set out
in the Report and Accounts for the year ended 30 June 2000. The comparative
figures for the year ended 30 June 2000 do not constitute statutory accounts.
Those accounts have been reported on by the Company's auditors and delivered
to the Registrar of Companies. The report of the auditors thereon was
unqualified and did not contain a statement under Section 237 (2) or (3) of
the Companies Act 1985.



7) Purchase of minority interest

In the six months to 31 December 2000, McBride plc increased its holding in
Wrafton Laboratories Ltd from 80% to 92.5% for a total consideration of £3.6
million, generating additional goodwill of £2.9 million.



Financial calendar for the year ending 30 June 2001


Dividends

Interim                                   Announcement      30 March 2001
Final                                     Announcement      September 2001
                                          Payment           November 2001

Results

Interim                                   Announcement      30 March 2001
Preliminary statement for full year       Announcement      September 2001
Report and Accounts                       Circulated        September 2001
Annual General Meeting                    To be held        October 2001