28 November
2024
MACFARLANE GROUP
PLC
("MACFARLANE GROUP", "THE
GROUP")
Trading
Update
Effective response to market
headwinds
Macfarlane Group PLC, the protective
packaging specialist, today provides an update on trading for the
period 1 January to 31 October 2024.
· The Board anticipates the Group's performance for 2024 will be
broadly in line with its full year expectations.
·
Revenue year to date is 4% below the same period
last year, with continued challenging market conditions resulting
in weaker volumes and lower pricing impacting most
sectors.
·
These impacts are being offset by improved new
business performance, effective management of pricing and costs and
the completion of two acquisitions during the period, both of which
are performing well.
·
The Group continues to progress its strong
acquisitions pipeline.
· A strong balance
sheet and cash generation, supported by a £35m bank facility,
underpin the Group's strategy; net bank debt at 31 October 2024 was
£4.7m (30 June 2024: Net bank funds of £0.8m), after £11.3m of
investment in acquisitions and payment of dividends of
£5.8m.
· The increase in
employers' national insurance rates and National Minimum Wage
announced in the UK Government Budget on 30 October 2024 will
increase the Group's costs by c£1.5m annually from April
2025. Mitigation actions are currently being reviewed to
minimise the impact.
Aleen Gulvanessian, Chair of
Macfarlane Group, said:
"As outlined in our Interim Results,
the management team is responding effectively to the market
headwinds. Our strong balance sheet gives us confidence we can
continue to execute accretive acquisitions. There is good new
business momentum as customers increasingly recognise the added
value we can offer both on an environmental and cost savings basis.
The Group remains well-positioned to benefit when the
macro-economic outlook improves."
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Further
enquiries:
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Macfarlane Group
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Tel: 0141 333 9666
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Aleen
Gulvanessian
Chair
|
|
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Peter
Atkinson
Chief Executive
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Ivor
Gray
Finance Director
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Spreng Thomson
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Callum Spreng
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Mob: 07803 970103
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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 40 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.
