Companies: MCB   

Household and personal care products supplier McBride is poised to take a £16m hit against 50%-owned joint venture Aerosol Products Limited (APL). The write-off relates to a 'put option' agreed between McBride's UK subsidiary Robert McBride (RMB) and its joint venture partner Nichol Beauty Products. Nichol has decided to exercise this option, meaning that RMB must stump up £12m to buy-out its 50% share. The remaining £4m stems from RMB's decision to subscribe for further preference shares in APL. By all accounts, McBride has turned the situation to its advantage. The Royal Bank of Scotland and Credit Agricole Indosuez have agreed to write-off APL's £11m debts in exchange for RMB's initial 50% holding. McBride now believes it can transform APL into a profitable business. If recent interims are anything to go by, it is more than capable. Figures to December showed group pre-tax profits doubling to £8.2m as sales increased to £248.7m (£242.2m). Moreover, trading in the second half is said to have surpassed this, so investors can expect a profit, before goodwill, of at least £17.5m (£11.3m) for the full year. Group debts of almost £90m are a big worry, though. Hold.

Mcbride	LSE	£210.94m	117.00p	-9.00p
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McBride to take £16m joint venture hit			08/06/2002