REG - Macfarlane Group PLC - AGM Trading Update

MacfarlaneAnnouncement

13/05/2025 07:02

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RNS Number : 3472I  Macfarlane Group PLC  13 May 2025

 

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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