Macfarlane Group looking to beat previous expectations
Thursday, November 25, 2021
Macfarlane Group has reported a robust performance since its first half – in the face of continuing challenging market conditions – and is now expecting to exceed its previous expectations for the full year.
In a trading update for the four-month period to 31 October 2021 released this morning (25 November), the Glasgow-headquartered packaging company said its sales revenue has grown by 25% in the year to date and group pre-tax profit is “well ahead of the corresponding period in 2020”.
The business said both of its 2021 acquisitions – Wiltshire-based protective packaging manufacturing and distribution business GWP and protective packaging distributor Carters Packaging (Cornwall) – are performing well.
The company is expecting the rest of 2021 to remain challenging with input price inflation, supply constraints on certain raw materials, and increased operating costs due to staffing pressures. It said some customers are also experiencing supply chain issues which are affecting their demand for packaging.
The group said its management team “remains focused on effectively managing these challenges”.
“The Macfarlane Group performance has been robust in demanding market conditions and is testament to the strength of our business model and the diligence of our people,” said Macfarlane Group chairman Stuart Paterson.
“At the interim results we indicated that we expected headwinds in the second half of 2021, so it is particularly pleasing to be once again raising our expectations for the full year.”
Macfarlane’s net bank debt at 31 October 2021 had reduced to £2m, from £8.7m on 30 June 2021.
The group employs over 1,000 people and supplies more than 20,000 customers. In August it reported sales of £133.5m for the six-month period ended 30 June 2021, an increase of 26.5% on the £105.5m figure recorded a year earlier, and pre-tax profit of £7.8m, up 120.6% on the H1 2020 figure of £3.5m.
Macfarlane Group's share price was up by 1.33% on yesterday’s close to 133.25p at the time of writing.