McBride Plc (LSE:MCB, Financial) was highlighted in Alluvial Capital's Q2 2024 letter as a turnaround story well into its recovery from losses caused by inflationary pressures and supply chain challenges. The fund, managed by Dave Waters, CFA, noted that McBride shares have performed well, up about 30% from the level of initial purchases. In April, the company increased its guidance for the year ending June 30, saying adjusted operating profit would be 10% ahead of market expectations and that net debt would continue to decline.
"This week, the company confirmed it had achieved this guidance, producing adjusted operating income of £66.4 million and bringing net debt down to £131.5 million, a reduction of £30 million since last June. Shareholders were modestly disappointed that the company did not again raise its guidance and sent shares down 10%. This is a major buying opportunity." — Dave Waters, CFA, Alluvial Capital, Q2 2024 Fund Letter
Read full letter at gurufocus Alluvial Capital 2024 Q2 page.
