13 May 2025
Macfarlane Group PLC
("Macfarlane" or the "Group")
AGM trading update
Full Year Expectations Unchanged
Share Buyback Programme Planned
Macfarlane Group PLC will today hold its Annual General Meeting at which Aleen Gulvanessian, Chair, will provide a Trading Update covering 2025 to date.
· The Group expectations for the full year are unchanged.
· Sales in Q1 2025 were 14.2% ahead of the same period in 2024 with the benefit of acquisitions, signs of organic growth momentum in Distribution and a strong performance from our Manufacturing Operations.
· Profit in Q1 2025 was behind the same period in 2024 due to lower gross margins, duplicate costs related to the consolidation of our East Midlands operations, and increased property costs and acquisition related costs.
· In January 2025, Macfarlane completed the acquisition of The Pitreavie Group Limited ("Pitreavie"), a leading protective packaging business in Scotland. Pitreavie is a well-managed business and we are working with management on sales, cost and sourcing synergies which will benefit the Group.
· We anticipate the Group's performance to improve in H2 2025 as we complete the East Midlands site consolidation, build on organic growth momentum in Distribution, continue our progress on new business, maintain the strong performance of our Manufacturing Operations, and implement the benefits from Pitreavie synergies. Management is also taking actions to mitigate the impact of increases in National Insurance and National Minimum Wage which took effect from 1 April 2025.
· Net bank debt at 31 March 2025 was £13.0m compared to £1.9m at 31 December 2024, after the net investment of £13.9m for the acquisition of Pitreavie. The Group continues to operate well within its bank facilities of £40m and related covenants, which are committed until November 2027.
· The Group will commence a share buyback programme of up to £4m, details of which will be announced separately this week.
Aleen Gulvanessian will further comment:
"Market conditions continue to be challenging, and global economic uncertainty is impacting the behaviour of some customers. However, the Group sees positive momentum in several areas, and we have a clear action plan for the remainder of the year which will enable Macfarlane to continue its progress.
Our decision to commence buying back shares has been made following extensive dialogue with our shareholders. This reflects our capital allocation policy of investing in the business, making acquisitions, and returning capital to shareholders through dividends and, when appropriate, share buybacks."
Further enquiries: | Macfarlane Group | Tel: 0141 333 9666 |
| | Aleen Gulvanessian Chair | |
| | Peter Atkinson Chief Executive | |
| | Ivor Gray Finance Director | |
| | | |
| | Spreng Thomson | |
| | Callum Spreng | Mob: 07803 970103 |
Legal Entity Identifier (LEI): 213800LVRYDERSJAAZ73
Notes to Editors:
· Macfarlane Group PLC has been listed on the Main Market of the London Stock Exchange plc (LSE: MACF) since 1973, with over 70 years' experience in the UK packaging industry.
· Through its two divisions, Macfarlane Group services a broad range of business customers, supplying them with high-quality protective packaging products which help customers reduce supply chain costs, improve operational efficiencies and sustainability and enhance their brand presentation. The divisions are:
o Packaging Distribution - Macfarlane Packaging Distribution is the leading UK distributor of a comprehensive range of protective packaging products; and
o Manufacturing Operations - Macfarlane Design and Manufacture is a UK market leader in the design and production of protective packaging for high value and fragile products.
· Headquartered in Glasgow, Scotland, Macfarlane Group employs over 1,000 people at 43 sites, principally in the UK, as well as in Ireland, Germany and the Netherlands.
· Macfarlane Group supplies more than 20,000 customers, principally in the UK and Europe.
· In partnership with 1,700 suppliers, Macfarlane Group distributes and manufactures 600,000+ lines, supplying to a wide range of sectors, including: retail e-commerce; consumer goods; food; logistics; mail order; electronics; defence; medical; automotive; and aerospace.
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