REG - Macfarlane Group PLC - Half-year Report
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RNS Number : 9331W Macfarlane Group PLC 28 August 2025
28 August 2025
MACFARLANE GROUP PLC
("MACFARLANE GROUP", "THE COMPANY", "THE GROUP")
INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2025
Full year outlook in line with market expectations
Increase/ (decrease)
Financial Highlights H1 2025 H1 2024 %
£000 £000
Statutory Measures
Revenue 146,591 129,598 13%
Gross profit 55,385 51,458 8%
Operating profit 7,030 10,606 (34)%
Profit before tax 4,961 9,701 (49)%
Profit for the period 3,699 7,237 (49)%
Interim dividend (pence) 0.96p 0.96p -%
Diluted earnings per share (pence) 2.32p 4.51p (49)%
Alternative performance measures
Adjusted operating profit(1) 9,787 12,533 (22)%
Adjusted profit before tax 7,932 11,628 (32)%
Adjusted diluted earnings per share (pence) 3.78p 5.37p (30)%
1 See note 2 for reconciliation of Alternative Performance Measures
(before charging amortisation and deferred contingent consideration
adjustments) to Statutory Measures.
Key Financial Highlights
· Group revenue increased by 13% to £146.6m (H1 2024: £129.6m).
· Group adjusted operating profit reduced by 22% to £9.8m (H1 2024:
£12.5m).
· Basic and diluted earnings per share were 2.32p per share (H1 2024:
4.55p per share) and 2.32p per share (H1 2024: 4.51p per share) respectively.
· Distribution generated revenues of £110.4m (H1 2024: £110.9m) with
adjusted operating profit of £4.8m (H1 2024: £9.3m).
· Manufacturing Operations increased revenues to £39.2m (H1 2024:
£21.3m) and reported adjusted operating profit of £5.0m (H1 2024: £3.2m).
· Net cash inflow from operating activities of £12.4m (H1 2024: £14.1m)
reflects continued management of working capital.
· Net bank debt was £15.2m on 30 June 2025, following a net cash outflow
of £13.3m since 31 December 2024, after £16.5m (H1 2024: £5.0m)
attributable to acquisitions and capital expenditure.
· The Group is operating well within its bank facility of £40.0m which
runs until 30 November 2027 with options to extend to November 2029.
· Pension scheme surplus of £9.2m on 30 June 2025 (31 December 2024:
£9.6m) with the Group not required to make any further contributions.
· Interim dividend of 0.96p per share (H1 2024: 0.96p per share) - to be
paid on 9 October 2025 to shareholders on the register as at 12 September 2025
(ex-dividend date 11 September 2025).
2025 Trading Outlook
Performance improvement expected in H2 2025 through seasonal trading uplift
and actions the management team is taking to manage input cost changes,
mitigate operating cost increases, convert our strong pipeline of new business
and deliver synergies from the Pitreavie acquisition. The full year outlook
for 2025 is in line with market expectations.
Aleen Gulvanessian, Chair of Macfarlane Group PLC, commented on the interim
results: "As noted in the trading update on 10 July, market conditions have
been challenging in H1 2025 due to economic headwinds and uncertainty.
"Whilst Distribution has experienced weaker than expected demand, delays in
new business decision-making and pressure on profit margins, Manufacturing
Operations has performed more robustly. Manufacturing Operations' performance
was driven by good contributions from the acquisitions of Polyformes Limited
in July 2024 ("Polyformes") and The Pitreavie Group Limited in January 2025
("Pitreavie") combined with stronger demand from customers, particularly in
the defence and aerospace sectors.
"The recently launched share buyback programme will continue as planned.
"Despite the current market conditions, the Board remains confident that our
strengthened sales team, differentiated customer proposition and proven
executional skills mean the medium-term prospects for the Group are positive."
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.
Interim Results - Management Report
Macfarlane Group's trading activities comprise Packaging Distribution and
Manufacturing Operations.
Macfarlane's Packaging Distribution business is the UK's leading specialist
distributor of protective packaging materials, with a growing presence in
Europe. Macfarlane operates in the UK, Ireland, the Netherlands and Germany
from 27 Regional Distribution Centres ("RDCs") and three satellite sites,
supplying industrial and retail customers with a comprehensive range of
protective packaging materials on a local, regional and national basis.
Competition in the packaging distribution market is from local and regional
protective packaging specialist companies as well as national and
international distribution generalists who supply a range of products,
including protective packaging materials.
Macfarlane competes effectively on a local basis through its strong focus on
customer service, its breadth and depth of product offering and through the
recruitment and retention of high-quality staff with good local market
knowledge. On a national and international basis, Macfarlane has market focus,
expertise and a breadth of product and service knowledge, all of which enable
it to compete effectively against non-specialist packaging distributors.
Packaging Distribution benefits its customers by enabling them to ensure their
products are cost-effectively protected in transit and storage through the
supply of a comprehensive product range, single source stock-and-serve supply,
just-in-time delivery, tailored stock management programmes, electronic
trading and independent advice on both packaging materials and packing
processes. Through the 'Significant Six' (1) sales approach we reduce our
customers' 'Total Cost of Packaging', improve their sustainability performance
and reduce their carbon footprint. This is achieved through supplying
effective packaging solutions, optimising warehousing and transportation,
reducing damages and returns and improving packaging efficiency.
(1) "Significant Six" represents the six key costs in a customers' packing
process being transport, warehousing, administration, damages and returns,
productivity and customer experience.
H1 2025 H1 2024
£000 £000
Revenue 110,415 110,902
Cost of sales (71,117) (68,888)
Gross margin 39,298 42,014
Net operating expenses (34,497) (32,705)
Adjusted operating profit (1) 4,801 9,309
Amortisation (1,433) (1,516)
Deferred contingent consideration adjustments (128) (12)
Operating profit 3,240 7,781
1. See note 2 for reconciliation of Alternative Performance Measures
(before charging amortisation and deferred contingent consideration
adjustments) to Statutory Measures.
The main features of Packaging Distribution performance in H1 2025 were as
follows:
· Weak customer demand across most sectors has resulted in revenue being
marginally lower than H1 2024.
· Despite a strong pipeline, new business in H1 2025 was £3.7m compared
to £4.5m in H1 2024, reflecting delays in customer decision-making.
· Gross margins were lower in H1 2025 at 35.6% (H1 2024: 37.9%), but more
consistent with H2 2024 (36.4%). This reflects the timing of the pass-through
of increased input prices, the competitive environment in a weak market and
one of our second-tier corrugate suppliers going into administration.
· Operating expenses at 31.2% of revenue (H1 2024: 29.5%) due to
investment in the quality of our sales team, the deployment of our new
website, the well-documented increases in National Insurance and National
Minimum Wage, additional property costs relating to higher-than-expected rent
increases and excess costs associated with the East Midlands consolidation
which was completed at the end of July 2025.
· As a consequence, adjusted operating profit as a percentage of revenue
decreased to 4.3% (H1 2024: 8.4%).
Interim Results - Management Report (continued)
The priorities for Packaging Distribution in H2 2025 are to:
· Accelerate new business momentum through effective application of our
leading sales tools, processes, World Class Sales training and the recent
sales recruitment programme.
· Continue to effectively manage raw material input price changes.
· Reduce operating costs through efficiency programmes in sales,
logistics and administration and, where possible, mitigate the impact of
increases in National Insurance Contributions, National Minimum Wage and
property rent.
· Realise the benefits of the new distribution centre in the East
Midlands.
· Support our customers to manage the impact of Extended Producer
Responsibility legislation and reduce their carbon footprint through offering
more sustainable packaging solutions.
· Strengthen our key supplier relationships.
· Develop both sales and cost synergies through the relationship with our
Manufacturing Operations, including Pitreavie.
· Achieve benefits from information technology investments and our
relaunched web-based solutions offer to provide customers with more effective
online access to our full range of products and services.
· Accelerate the progress we have made in Europe through our "Follow the
Customer" programme.
· Continue to develop a pipeline of high-quality acquisitions in the UK
and Europe.
· Maintain our focus on working capital management to facilitate future
investment and manage effectively the ongoing bad debt risk within the current
economic environment.
Manufacturing Operations comprises our nine Macfarlane Packaging Design and
Manufacture business units focused on design, manufacture and assembly of
bespoke protective packaging solutions for customers requiring cost-effective
methods of protecting high value products in storage and transit.
The primary components we use are corrugate, timber, foam and specialist
cases. The businesses supply both directly to customers and through the
national RDC network of the Packaging Distribution business.
Key market sectors are aerospace, space, medical equipment, electronics,
automotive, e-commerce retail, household equipment, food and drink. The
markets we serve are highly fragmented, with a range of locally based
competitors. We differentiate our market offering through technical expertise,
design capability, industry accreditations and national coverage through the
Packaging Distribution business.
H1 2025 H1 2024
£000 £000
Revenue 39,212 21,329
Inter-segment revenue (3,036) (2,633)
External revenue 36,176 18,696
Cost of sales (20,089) (9,252)
Gross margin 16,087 9,444
Net operating expenses (11,101) (6,220)
Adjusted operating profit (1) 4,986 3,224
Amortisation (1,196) (638)
Deferred contingent consideration adjustments - 239
Operating profit 3,790 2,825
1. See note 2 for reconciliation of Alternative Performance Measures
(before charging amortisation and deferred contingent consideration
adjustments) to Statutory Measures.
Interim Results - Management Report (continued)
The main features of Manufacturing Operations performance in H1 2025 were:
· Increase in revenue of £17.9m to £39.2m due to:
· £17.8m of revenue from the acquisitions of Polyformes in July 2024 and
Pitreavie in January 2025.
· organic growth of 0.3% including increases in internal supply to
Distribution.
· Gross margins have decreased to 41.0% (H1 2024: 44.3%) due primarily to
the effect of Pitreavie, which operates at lower margins and, to a lesser
extent, the impact of increasing input prices.
· Operating expenses remain well controlled.
· 55% increase in adjusted operating profit.
· Reduction in adjusted operating profit as a percentage of revenue to
12.7% (H1 2024: 15.1%).
The priorities for Manufacturing Operations in H2 2025 are to:
· Increase momentum of new business growth in target sectors, e.g.
medical, aerospace and space.
· Prioritise new sales activity in our higher added-value bespoke
composite pack product range.
· Work with our customers to effectively manage raw material price
changes.
· Continue strengthening the relationship with our Packaging Distribution
businesses to create both sales and cost synergies.
· Achieve both sales and cost synergies through closer working with the
recently-acquired businesses.
· Develop a pipeline of further high-quality acquisitions in the UK.
Interim Results - Management Report (continued)
Risks and Uncertainties
The Group operates a formal framework for the identification and evaluation of
the major business risks faced by each business and determines an appropriate
course of action to manage these risks.
The principal risks and uncertainties which could impact on the performance of
the Group, together with the mitigating actions, were outlined on pages 26 to
30 in our Annual Report and Accounts for 2024 (available on our website at
www.macfarlanegroup.com
(https://url.avanan.click/v2/r02/___http:/www.macfarlanegroup.com___.YXAxZTpzaG9yZWNhcDphOm86Y2Y5MzkxMzI0OTdlZDBmNzQ1OTE3YjkxYTU2ZmRjY2E6NzpmNzcyOmQ1MTQ3NzIxNDBlMTU1M2E4OTA1ZTk2OTcyMzdjMjFlOWNlODRhYTczMTViMDlhYjlmMmU1YWFkMWM0MzQ3Y2M6cDpGOk4)
). These remain the same for the remaining six months of the current
financial year with those considered highest priority for the Group summarised
below:
· Given the range of prolonged geopolitical and economic uncertainties
within the UK and other markets, there is an ongoing risk this will adversely
affect our ability to deliver upon agreed strategic initiatives. We may also
need to adapt our business quickly in order to limit the impact upon the
Group's results, prospects and reputation.
· The markets we operate in are changing, with: customers increasingly
aware of the environmental impact of their packaging; increasing environmental
regulatory requirements for packaging suppliers, such as the Plastic Tax
introduced in 2022 and the introduction of the Extended Producer
Responsibility ("EPR") levy in 2025; increasing likelihood of disruption to
the operations of the Group through extreme weather events such as flooding,
storm damage and water stress, impacting the business directly and disrupting
supply chains; investors looking to invest in companies that demonstrate
strong environmental credentials; and UK Government's commitment to net zero
carbon emissions by 2050 and the profound changes that is likely to drive
across the economy.
· Failure to respond to strategic shifts in the market, including the
impact of weaknesses in the economy as well as disruptive behaviour from
competitors, changing customer needs (e.g. changing customer priorities
between online and physical buying) and the increasing regulatory
interventions targeted at improving sustainability could limit the Group's
ability to continue to grow revenues or potentially contribute to a failure to
meet market expectations.
· The Group's businesses are impacted by disruption to our supply chains
as well as inflationary pressures. In particular, changes to commodity-based
raw material prices, manufacturer energy costs, foreign exchange movements as
well as increased bureaucracy, freight and tariff costs related to imports;
lead to increases to supplier input pricing and the potential for erosion of
profitability within the Group's businesses if we are unable to pass these
onto customers.
· The increasing frequency and sophistication of cyber-attacks is a risk
which potentially threatens the confidentiality, integrity and availability of
the Group's data and IT systems. These attacks could also cause reputational
damage and fines in the event of personal data being compromised.
Interim Results - Management Report (continued)
Cautionary Statement
This announcement has been prepared solely to provide additional information
to shareholders to assess the Group's strategy and the potential for the
strategy to succeed. It should not be relied on by any other party or for
any other purpose.
This report and the condensed financial statements contain certain
forward-looking statements relating to operations, performance and financial
status. By their nature, such statements involve risk and uncertainty
because they relate to events and depend upon circumstances that will occur in
the future. There are a number of factors, including both economic and
business risk factors that could cause actual results or developments to
differ materially from those expressed or implied by these forward-looking
statements. These statements are made by the Directors in good faith based
on the information available to them up to the time of their approval of this
report. Nothing in this Interim Results Statement should be construed as a
profit forecast or an invitation to deal in the securities of the Group.
Responsibility Statement
The Directors of Macfarlane Group PLC during the first six months of 2025 were
A. Gulvanessian Chair
P.D. Atkinson Chief Executive
I. Gray Finance Director
J.W.F. Baird Non-Executive Director
D.L. Whyte Non-Executive Director
D.B. Stirling Non-Executive Director
The Directors confirm that, to the best of their knowledge:-
(i) the condensed set of financial statements has been
prepared in accordance with IAS 34 Interim Financial Reporting;
(ii) the interim management report includes a fair review
of the information required by DTR 4.2.7R of the Disclosure and Transparency
Rules, being an indication of important events that have occurred during the
first six months of the financial year and their impact on the condensed set
of financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the year; and
(iii) the interim management report includes a fair review
of the information required by DTR 4.2.8R of the Disclosure and Transparency
Rules, being related party transactions that have taken place in the first six
months of the current financial year and that have materially affected the
financial position or performance of the entity during that period; and any
changes in the related party transactions described in the last annual report
that could do so.
Approved by the Board of Directors on 28 August 2025 and signed on its behalf
by
…………………………..
………………………
Peter D. Atkinson Ivor Gray
Chief Executive Finance Director
MACFARLANE GROUP PLC
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six Six Year
months to months to to 31
30 June 30 June December
2025 2024 2024
£000 £000 £000
Note
Continuing operations
Revenue 4 146,591 129,598 270,437
Cost of sales (91,206) (78,140) (165,065)
Gross profit 55,385 51,458 105,372
Distribution costs (6,583) (5,609) (11,165)
Administrative expenses (41,772) (35,243) (70,610)
Operating profit 4 7,030 10,606 23,597
Finance costs 5 (2,069) (905) (2,701)
Profit before tax 4,961 9,701 20,896
Tax 6 (1,262) (2,464) (5,366)
Profit for the period 3,699 7,237 15,530
Earnings per share 8
Basic 2.32p 4.55p 9.76p
Diluted 2.32p 4.51p 9.74p
MACFARLANE GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six Six Year
months to months to to 31
30 June 30 June December
2025 2024 2024
£000 £000 £000
Items that may be reclassified to profit or loss Note
Foreign currency translation differences 178 (76) (150)
Items that will not be reclassified to profit or loss
Remeasurement of pension scheme liability 11 (568) 270 (362)
Tax recognised in other comprehensive income
Tax on remeasurement of pension scheme liability 12 142 (68) 91
Other comprehensive income for the period, net of tax
(248) 126 (421)
Profit for the period 3,699 7,237 15,530
Total comprehensive income for the period 3,451 7,363 15,109
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Note Share Share Capital Revaluation Own Translation Retained
Capital Premium Redemption Reserve Shares Reserve Earnings Total
£000 £000 Reserve £000 £000 £000 £000
£000
At 1 January 2025 39,900 14,496 - 70 (429) 21 69,215 123,273
Comprehensive income
Profit for the period - - - - - - 3,699 3,699
Foreign currency
translation differences - - - - - 178 - 178
Remeasurement of
pension scheme liability 11 - - - - - - (568) (568)
Tax on remeasurement of
pension scheme liability 12 - - - - - - 142 142
Total comprehensive income - - - - - 178 3,273 3,451
Transactions with shareholders
Dividends 7 - - - - - (4,302) (4,302)
Purchase of own shares (62) - 62 - (47) - (293) (340)
Share-based payments - - - - 116 - (16) 100
Total transactions with
shareholders (62) - 62 - 69 - (4,611) (4,542)
At 30 June 2025 39,838 14,496 62 70 (360) 199 67,877 122,182
MACFARLANE GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2024
Note Share Share Revaluation Own Translation Retained
Capital Premium Reserve Shares Reserve Earnings Total
£000 £000 £000 £000 £000 £000 £000
At 1 January 2024 39,738 13,981 70 (16) 171 60,632 114,576
Comprehensive income
Profit for the period - - - - - 7,237 7,237
Foreign currency
translation differences - - - - (76) - (76)
Remeasurement of
pension scheme liability 11 - - - - - 270 270
Tax on remeasurement of
pension scheme liability 12 - - - - - (68) (68)
Total comprehensive income - - - - (76) 7,439 7,363
Transactions with shareholders
Dividends 7 - - - - - (4,221) (4,221)
New shares issued 162 515 - (21) - (656) -
Purchase of own shares - - - (392) - - (392)
Share-based payments - - - - - 74 74
Total transactions with
Shareholders 162 515 - (413) - (4,803) (4,539)
At 30 June 2024 39,900 14,496 70 (429) 95 63,268 117,400
MACFARLANE GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Note Share Share Revaluation Own Translation Retained
Capital Premium Reserve Shares Reserve Earnings Total
£000 £000 £000 £000 £000 £000 £000
At 1 January 2024 39,738 13,981 70 (16) 171 60,632 114,576
Comprehensive income
Profit for the period - - - - - 15,530 15,530
Foreign currency
translation differences - - - - (150) - (150)
Remeasurement of
pension scheme liability 11 - - - - - (362) (362)
Tax on remeasurement of
pension scheme liability 12 - - - - - 91 91
Total comprehensive income - - - - (150) 15,259 15,109
Transactions with shareholders
Dividends 7 - - - - - (5,750) (5,750)
New shares issued 162 515 - (21) - (656) -
Purchase of own shares - - - (392) - - (392)
Share-based payments - - - - - (270) (270)
Total transactions with
shareholders 162 515 - (413) - (6,676) (6,412)
At 31 December 2024 39,900 14,496 70 (429) 21 69,215 123,273
MACFARLANE GROUP PLC
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) AT 30 JUNE 2025
30 June 30 June 31 December
2025 2024 2024
Note £000 £000 £000
Non-current assets
Goodwill and other intangible assets 108,623 88,674 97,970
Property, plant and equipment 13,321 9,713 10,607
Right of use assets 49,511 42,105 41,077
Trade and other receivables 35 35 35
Deferred tax assets 12 321 172 145
Retirement benefit surplus 11 9,217 10,164 9,636
Total non-current assets 181,028 150,863 159,470
Current assets
Inventories 22,041 18,626 19,049
Trade and other receivables 58,969 51,012 55,015
Current tax asset 2,091 1,175 469
Cash and cash equivalents 10 13,528 9,782 12,928
Total current assets 96,629 80,595 87,461
Total assets 4 277,657 231,458 246,931
Current liabilities
Trade and other payables 57,648 49,023 50,263
Provisions 1,025 366 1,044
Current tax liabilities 1,291 1,563 1,035
Lease liabilities 10 8,848 7,487 7,223
Bank borrowings 10 28,682 8,977 14,846
Total current liabilities 97,494 67,416 74,411
Net current assets (865) 13,179 13,050
Non-current liabilities
Deferred tax liabilities 12 12,678 9,527 10,937
Deferred contingent consideration 2,407 - 2,330
Provisions 480 1,239 327
Lease liabilities 10 42,416 35,876 35,653
Total non-current liabilities 57,981 46,642 49,247
Total liabilities 155,475 114,058 123,658
Net assets 4 122,182 117,400 123,273
Equity
Share capital 39,838 39,900 39,900
Share premium 14,496 14,496 14,496
Capital redemption reserve 62 - -
Revaluation reserve 70 70 70
Own shares (360) (429) (429)
Translation reserve 199 95 21
Retained earnings 67,877 63,268 69,215
Total equity 122,182 117,400 123,273
MACFARLANE GROUP PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six Six months to Year
months to 30 June to 31
30 June December
2025 2024 2024
Note £000 £000 £000
Profit before tax 4,961 9,701 20,896
Adjustments for:
Amortisation of intangible assets 2,629 2,154 4,610
Depreciation of property, plant, equipment 1,252 887 1,879
Depreciation of right-of-use assets 4,982 4,263 8,878
Deferred contingent consideration 128 (227) (805)
(Gain)/loss on disposal of property,plant,equipment (8) 33 39
Share-based payment expense - 74 (270)
Finance costs 2,069 905 2,701
Operating cash flows before movements in working capital
16,013 17,790 37,928
Increase in inventories (1,736) (918) (646)
Decrease in receivables 521 3,079 1,883
(Increase)/decrease in payables 2,654 (1,015) (2,233)
Decrease in provisions (54) (125) (359)
Other non-cash movements 182 - (150)
Pension administration costs 109 244 361
Cash generated from operations 17,689 19,055 36,784
Deferred contingent consideration paid 9 - (470) (1,492)
Income taxes paid (3,192) (3,401) (6,773)
Interest paid (2,113) (1,122) (3,091)
Net cash inflow from operating activities 12,384 14,062 25,428
Investing activities
Acquisitions 9 (10,667) (3,598) (10,600)
Proceeds on disposal of property, plant and equipment 123 16 45
Purchases of property, plant and equipment (1,422) (1,416) (2,925)
Net cash flows from investing activities (11,966) (4,998) (13,480)
Financing activities
Dividends paid 7 (4,302) (4,221) (5,750)
Purchase of own shares (240) (392) (392)
Drawdown of bank borrowings 39,500 - -
Repayment of bank borrowings (31,859) 146 8,386
Repayment of lease obligations 10 (4,671) (4,173) (8,251)
Net cash flows from financing activities (1,572) (8,640) (6,007)
Net (decrease)/increase in cash and cash equivalents (1,154) 424 5,941
Cash and cash equivalents at beginning of period 12,928 6,987 6,987
Cash and cash equivalents at end of period 11,774 7,411 12,928
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
Reconciliation to condensed consolidated cash flow statement
Six months to 30 June 2025 Six months to 30 June 2024 Year to 31 December 2024
£000 £000 £000
13,528 9,782 12,928
Cash and cash equivalents per the balance sheet 10
Bank overdraft (1,754) (2,371) -
Balances per the cash flow statement 11,774 7,411 12,928
1. Basis of preparation
Macfarlane Group PLC is a public company listed on the London Stock Exchange,
incorporated and domiciled in the United Kingdom and registered in Scotland.
The Group's annual financial statements for the year ended 31 December 2024
were prepared in accordance with United Kingdom adopted international
accounting standards. This condensed set of interim financial statements has
been prepared in accordance with United Kingdom adopted International
Financial Reporting Standard IAS 34 Interim Financial Reporting.
This condensed set of interim financial statements has been prepared applying
the accounting policies that were applied in the preparation of the company's
published consolidated financial statements for the year ended 31 December
2024. There were no major changes from the adoption of new IFRS's in 2024.
Key sources of estimation uncertainty
The preparation of financial statements requires management to make estimates
and assumptions that affect the amounts reported for assets and liabilities as
at the balance sheet date and the amounts reported for revenues and expenses
during the year. Due to the nature of estimation, the actual outcomes may well
differ from these estimates. The Directors have assessed the impact of climate
change and consider that this does not have a significant impact on these
financial statements. The key sources of estimation uncertainty that have a
significant effect on the carrying amounts of assets and liabilities are
discussed below:
Retirement benefit obligations
The determination of any defined benefit pension scheme liability is based on
assumptions determined with independent actuarial advice. The key assumptions
used include discount rate and inflation rate, for which a sensitivity
analysis is provided in Note 11. The Directors consider that those
sensitivities represent reasonable sensitivities which could occur in the next
financial period.
Valuation of deferred contingent consideration
The valuation of deferred contingent consideration at both acquisition date
and the balance sheet date is measured at fair value. This involves the
assessment of forecast future cash flows against earn-out targets agreed with
the sellers of acquired businesses over a period of up to two years. This
assessment is based on the Directors' best estimate using the information
available at the effective dates outlined above. However, there remains a risk
that the actual payment differs from the amount assumed as consideration
within the PPA accounting as detailed in note 9 and from the amount recorded
as a liability at the balance sheet date. Deferred contingent considerations
are recognised as a liability in trade and other payables and are remeasured
to fair value of £6.3m at the balance sheet date, all due within one year,
based on a range of outcomes between £Nil and £8.8m. Trading in the
post-acquisition period supports the remeasured value of £6.3m.
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
1. Basis of preparation
Critical accounting judgements
Property provisions
Property provisions of £1.5m have been recognised as at 30 June 2025 (2024:
£1.6m), representing the Directors' best estimate of dilapidations on
property leases. The Directors have made the judgement that no provision is
required for certain property leases where there is no intention to exit,
having considered a number of factors including the extent of modifications to
the property, the terms of the lease agreement, and the condition of the
property.
No other significant critical judgements have been made in the current or
prior year.
Business activities, risks and financing
The Group's business activities, together with the factors likely to affect
its future development, performance and financial position, are set out in the
Interim Management Report.
The Group's principal financial risks in the medium term relate to liquidity
and credit risk. Liquidity risk is managed by ensuring that the Group's
day-to-day working capital requirements are met by having access to banking
facilities with suitable terms and conditions to accommodate the requirements
of the Group's operations. The Group has a committed borrowing facility of
£40m with Bank of Scotland PLC and HSBC UK Bank plc in place until November
2027. The facility bears interest at normal commercial rates and carries
standard financial covenants in relation to interest cover and leverage.
Credit risk is mitigated by applying considerable rigour in managing the
Group's trade receivables. The Directors believe that the Group is adequately
placed to manage its financial risks effectively, despite any economic
uncertainty.
The Directors have reviewed the Group's cash and profit projections, which
they believe are based on prudent market data and past experience taking
account of reasonably possible changes in trading performance given current
market and economic conditions. The Directors are of the opinion that these
projections show that the Group should be able to operate within its current
facilities and comply with its banking covenants.
In assessing the going concern basis, the Directors have considered the
Group's business activities, the financial position of the Group and the
Group's risks and uncertainties. The Directors have a reasonable expectation
that the Company and the Group have adequate resources to continue in
operational existence for the foreseeable future, a period of not less than 12
months from the date of this report. For this reason, this condensed set of
financial statements has been prepared on the going concern basis.
Approval and review of condensed financial statements
These condensed financial statements were approved by the Board of Directors
on 28 August 2025. As in previous years, the set of condensed financial
statements for the half-year is unaudited.
2. Alternative performance measure
In measuring the financial performance and position, the financial measures
used in certain limited cases are derived from the reported results in order
to eliminate factors which due to their unusual nature and size distort
year-on-year comparisons to a material extent and/or provide useful
information to stakeholders. Where such items arise, the Directors will
classify such items as separately disclosed and provide details of these items
to enable users of the accounts to understand the impact on the financial
statements. To the extent that a measurement under Generally Accepted
Accounting Principles ("GAAP") is adjusted for a separately disclosed item,
this is referred to as an Alternative Performance Measure ("APM"). We believe
that the APMs defined below, and the comparable GAAP measurement, provides a
useful basis for measuring the underlying financial performance and position
of the Group and its businesses when compared to similar companies.
Adjusted operating profit is defined as operating profit before customer
relationships and brand values amortisation, and deferred contingent
consideration adjustments.
Adjusted profit before tax is defined as profit before tax, customer
relationships and brand values amortisation, and deferred contingent
consideration adjustments.
Adjusted diluted earnings per share is defined as diluted earnings per share
before, customer relationships and brand values amortisation per share and
related tax per share and deferred contingent consideration adjustments per
share.
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
Customer relationship/ brand values Deferred
Alternative amortisation contingent
performance £000 consideration Statutory
measures adjustments Tax measures
£000 £000 £000 £000
Year to 30 June 2025
Adjusted operating profit 9,787 (2,629) (128) - 7,030 Operating profit
Adjusted profit before tax 7,932 (2,629) (342) - 4,961 Profit before tax
Adjusted diluted earnings per share (pence) Diluted earnings per share (pence)
3.78p (1.65)p (0.21)p 0.40p 2.32p
Year to 30 June 2024
Adjusted operating profit 12,533 (2,154) 227 - 10,606 Operating profit
Adjusted profit before tax 11,628 (2,154) 227 - 9,701 Profit before tax
Adjusted diluted earnings per share (pence) Diluted earnings per share (pence)
5.37p (1.34)p 0.14p 0.34p 4.51p
Year to 31 December 2024
Adjusted operating profit 27,402 (4,610) 805 - 23,597 Operating profit
Adjusted profit before tax 24,969 (4,610) 537 - 20,896 Profit before tax
Adjusted diluted earnings per share (pence) Diluted earnings per share (pence)
11.56p (2.89)p 0.34p 0.73p 9.74p
3. General information
Comparative figures for the year ended 31 December 2024 are extracted from
Macfarlane Group's statutory accounts for 2024. The information for the year
ended 31 December 2024 does not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006. A copy of the statutory accounts for
that year has been reported on by the Company's auditor and delivered to the
Registrar of Companies. The report of the auditor on 27 February 2025 was
(i) unqualified, (ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
4. Segmental information
The Group's principal business segment is Packaging Distribution, comprising
the distribution of packaging materials in the UK, Ireland and Europe. This
comprises 75% of Group revenue and 46% of Group operating profit. The Group's
Manufacturing Operations segment comprises the design, manufacture and
assembly of timber, corrugated and foam-based packaging materials in the UK.
This comprises 25% of Group revenue and 54% of Group operating profit.
Six months Six months Year to 31
to 30 June to 30 June December
2025 2024 2024
£000 £000 £000
Group segment - total revenue
Packaging Distribution 110,415 110,902 228,763
Manufacturing Operations 39,212 21,329 47,458
Inter-segment revenue (3,036) (2,633) (5,784)
Revenue 146,591 129,598 270,437
Trading results - continuing operations
Packaging Distribution
Total and external revenue 110,415 110,902 228,763
Cost of sales (71,117) (68,888) (143,890)
Gross profit 39,298 42,014 84,873
Net operating expenses (34,497) (32,705) (64,715)
Adjusted operating profit 4,801 9,309 20,158
Amortisation (1,433) (1,516) (3,082)
Deferred contingent consideration adjustments (128) (12) 255
Operating profit 3,240 7,781 17,331
Manufacturing Operations
Total revenue 39,212 21,329 47,458
Inter-segment revenue (3,036) (2,633) (5,784)
External revenue 36,176 18,696 41,674
Cost of sales (20,089) (9,252) (21,175)
Gross profit 16,087 9,444 20,499
Net operating expenses (11,101) (6,220) (13,255)
Adjusted operating profit 4,986 3,224 7,244
Amortisation (1,196) (638) (1,528)
Deferred contingent consideration adjustments - 239 550
Operating profit 3,790 2,825 6,266
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
4. Segmental information (continued)
Six months Six months Year to 31
to 30 June to 30 June December
2025 2024 2024
£000 £000 £000
Operating profit - continuing operations
Packaging Distribution 3,240 7,781 17,331
Manufacturing Operations 3,790 2,825 6,266
Operating profit 7,030 10,606 23,597
Finance costs (note 5) (2,069) (905) (2,701)
Profit before tax 4,961 9,701 20,896
Tax (1,262) (2,464) (5,366)
(note 6)
Profit for the period 3,699 7,237 15,530
30 June 30 June 31 December
2025 2024 2024
£000 £000 £000
Total assets
Packaging Distribution 192,958 189,454 189,768
Manufacturing Operations 84,699 42,004 57,163
Total assets 277,657 231,458 246,931
Net assets
Packaging Distribution 62,364 86,809 78,936
Manufacturing Operations 59,818 30,591 44,337
Net assets 122,182 117,400 123,273
5. Finance costs Six months Six months Year to 31
to 30 June to 30 June December
2025 2024 2024
£000 £000 £000
Interest on bank borrowings 878 342 950
Interest on leases 1,235 780 1,921
Finance income relating to defined benefit pension scheme (note 11) (258) (217) (438)
Finance charge relating to deferred contingent consideration 214 - 268
Net finance costs 2,069 905 2,701
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
6. Tax Six months Six months Year to 31
to 30 June to 30 June December
2025 2024 2024
£000 £000 £000
Current tax
UK corporation tax 1,744 2,390 5,363
Foreign tax 145 461 795
Prior year adjustments 43 - (58)
Total current tax 1,932 2,851 6,100
Total deferred tax (670) (387) (734)
(note 12)
Total tax 1,262 2,464 5,366
Tax for the six months ended 30 June 2025 has been charged at 25% (2024 - 25%)
representing the best estimate of the effective tax charge for the full
year. Deferred tax assets and liabilities at 30 June 2025 have been
calculated based on the long-term corporation tax rate of 25%, which had been
substantively enacted at that date.
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
7. Dividends Six months Six months Year to 31
to 30 June to 30 June December
2025 2024 2024
£000 £000 £000
Amounts recognised as distributions to equity holders in the period
Final dividend 2.70p per share (2024: 4,302 4,221 4,221
2.65 per share)
Interim - - 1,529
dividend
(2024: 0.96p per share)
Distributions in the period 4,302 4,221 5,750
An interim dividend of 0.96p per share, payable on 9 October 2025, was
declared on 28 August 2025 and has therefore not been included as a liability
in these condensed financial statements.
8. Earnings per share Six months Six months Year to 31
to 30 June to 30 June December
2025 2024 2024
Earnings £000 £000 £000
Profit for the period 3,699 7,237 15,530
30 June 30 June 31 December 2024
Number of shares '000 2025 2024
Weighted average number of shares in issue 159,559 159,321 159,461
Less shared held by the EBT (296) (226) (278)
Weighted average number of shares- basic 159,263 159,095 159,183
Effect of Long-Term Incentive Plan awards in issue 116 1,475 340
Weighted average number of shares - diluted 159,379 160,570 159,523
Basic earnings per share 2.32p 4.55p 9.76p
Diluted earnings per share 2.32p 4.51p 9.74p
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
9. Acquisitions
On 10 January 2025, MGUK acquired 100% of The Pitreavie Group Limited
("Pitreavie"), for a total potential consideration of £18.0m less completion
adjustments of £3.4m. Full potential contingent consideration of £4.0m is
payable in the first quarters of 2026 and 2027, subject to certain trading
targets being met in the twelve-month period ending on 31 December 2025 and 31
December 2026 respectively.
£0.55m was paid in 2025 to the sellers of A & G Holdings Limited
("Gottlieb"), acquired in 2023, as the profit target was met for the
twelve-month period ending 30 April 2025.
£0.65m was paid in 2025 to the sellers of Allpack Packaging Supplies Limited
("Allpack Direct"), acquired in 2024, as the profit target was partially met
for the twelve-month period ending 28 February 2025.
Contingent considerations are recognised as a liability in trade and other
payables and are remeasured to fair value of £6.3m at the balance sheet date,
all due within one year, based on a range of outcomes between £Nil and
£8.8m. Trading in the post-acquisition period supports the remeasured value
of £6.3m. The £6.3m relates to the acquisitions of Polyformes Limited
(£4.7m) and Pitreavie (£1.6m). The settlement of the amount initially
recognised upon acquisition is reflected in cash flows from investing
activities, with the element of the payment relating to any subsequent
remeasurement included within cash flows from operating activities.
Fair values assigned to net assets acquired and consideration paid and payable
are set out below:
Prior Year 2025
Pitreavie Acquisitions Total
£000 £000 £000
Net assets acquired
Other intangible assets 6,937 - 6,937
Tangible assets 7,490 - 7,490
Inventories 1,256 - 1,256
Trade and other receivables 4,475 - 4,475
Current tax asset 111 111
Cash and bank balances 1,093 - 1,093
Bank borrowings (4,441) (4,441)
Trade and other payables (4,275) - (4,275)
Lease liabilities (4,477) (4,477)
Deferred tax liabilities (note 11) (2,377) - (2,377)
Net assets acquired 5,792 - 5,792
Goodwill arising on acquisition 6,346 - 6,346
Total consideration 12,138 - 12,138
Contingent consideration on acquisitions
Current year (1,577) - (1,577)
Prior years - 1,199 1,199
Total cash consideration 10,561 1,199 11,760
Net cash outflow arising on acquisitions
Cash consideration (10,561) (1,199) (11,760)
Cash and bank balances acquired 1,093 - 1,093
Net cash outflow - acquisitions (9,468) (1,199) (10,667)
Per Cash Flow Statement
Net cash outflow from investing activities (9,468) (1,199) (10,667)
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
10. Analysis of changes in net debt
Cash and
cash Bank Lease Total
equivalents borrowing liabilities debt
£000 £000 £000 £000
Total debt
At 1 January 2024 7,691 (7,164) (36,176) (35,649)
Non-cash movements
Acquisitions 1,862 - - 1,862
Disposals - - 108 108
New leases - - (11,504) (11,504)
Exchange movements - - 36 36
Cash movements 229 (1,813) 4,173 2,589
At 30 June 2024 9,782 (8,977) (43,363) (42,558)
Non-cash movements
Acquisitions 621 - (1,709) (1,088)
Disposals - - (1) (1)
New leases - - 296 296
Exchange movements - - 33 33
Lease modifications - - (2,210) (2,210)
Cash movements 2,525 (5,869) 4,078 734
At 31 December 2024 12,928 (14,846) (42,876) (44,794)
Non-cash movements
Acquisitions 1,093 (4,441) (4,477) (7,825)
Disposals - - 4 4
New leases - - (8,534) (8,534)
Exchange movements - - (34) (34)
Lease modifications - - (18) (18)
Cash movements (493) (9,395) 4,671 (5,217)
At 30 June 2025 13,528 (28,682) (51,264) (66,418)
Total cash movements for 2024 2,754 (7,682) 8,251 3,323
Net bank debt Net bank
debt
£000
At 30 June 2025 13,528 (28,682) (15,154)
At 31 December 2024 12,928 (14,846) (1,918)
Cash and cash equivalents (which are presented as a single class of asset on
the balance sheet) comprise cash at bank and other short-term highly liquid
investments with maturity of three months or less.
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
11. Retirement benefit obligations
The figures below have been prepared by Aon based on the results of the
triennial actuarial valuation as at 1 May 2023 updated to 30 June 2024, 31
December 2024 and 30 June 2025. The scheme investments and the scheme's net
surplus position as calculated under IAS 19 are as follows:
30 June 30 June 31 December
Investment class 2025 2024 2024
£000 £000 £000
Equities
Multi-asset diversified growth funds 2,404 4,897 2,879
Bonds
Liability-driven Investment funds 32,608 34,690 32,589
Other investments
Multi asset credit fund 10,316 10,041 10,234
Securitised credit funds 16,558 17,343 16,895
Cash 1,029 1,305 1,511
Fair value of Scheme investments 62,915 68,276 64,108
Present value of Scheme liabilities (53,698) (58,112) (54,472)
Pension scheme surplus 9,217 10,164 9,636
These amounts were calculated using the following principal assumptions as
required under IAS 19:
Assumptions 30 June 2025 30 June 2024 31 December 2024
Discount rate 5.50% 5.10% 5.50%
Rate of increase in pensionable salaries 0.00% 0.00% 0.00%
Rate of increase in pensions in payment 3% or 5% 3% or 5% 3% or 5%
for fixed increases for fixed increases for fixed increases
or 2.88% for LPI or 3.10% for LPI or 3.03% for LPI
PIE take up rate 60% 60% 60%
Inflation assumption (RPI) 3.00% 3.30% 3.20%
Inflation assumption (CPI) 2.60% 2.80% 2.80%
Life expectancy beyond normal retirement age of 65
Scheme member aged 55 22.4 years 22.3 years
Male 22.5 years
24.1 years 24.1 years
Female 24.2 years
Scheme member aged 65 Male 21.9 years 21.9 years 21.8 years
23.5 years 23.4 years 23.4 years
Female
Average uplift for GMP service 0.40% 0.40% 0.40%
Six months Six months Year to 31 December
to 30 June to 30 June 2024
2025 2024 £000
£000 £000
Movement in scheme surplus in the period
At start of period 9,636 9,921 9,921
Administration costs incurred (109) (244) (361)
Net finance income 258 217 438
Re-measurement of pension scheme liability in the period (568) 270 (362)
At end of period 9,217 10,164 9,636
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
11. Retirement benefit obligations (continued)
Sensitivity to key assumptions
Key assumptions used for IAS 19 are discount rate, inflation and mortality.
If different assumptions were used, then this could have a material effect on
the surplus. Assuming all other assumptions are held static then a movement
in the following key assumptions would affect the level of the surplus as
shown below:-
30 June 30 June 31 December
Assumptions 2025 2024 2024
£000 £000 £000
Discount rate movement of +3.0% 19,326 20,915 19,605
Inflation rate movement of +0.25% (514) (556) (521)
Mortality movement of +0.1 year in age rating 121 131 123
Positive figures reflect a reduction in scheme liabilities and therefore an
increase in the scheme surplus.
Six months Six months Year to 31
to 30 June to 30 June December
2025 2024 2024
£000 £000 £000
Movement in fair value of Scheme investments
Scheme investments at start of period 64,108 72,523 72,523
Interest income 1,698 1,582 3,160
Return on scheme assets (exc. amount shown in interest income) (888) (3,504) (6,933)
Administration costs incurred (109) (244) (361)
Benefits paid (1,894) (2,081) (4,281)
Scheme investments at end of period 62,915 68,276 64,108
Movement in present value of Scheme liabilities
Scheme liabilities at start of period (54,472) (62,602) (62,602)
Interest cost (1,440) (1,365) (2,722)
Actuarial gain due to the changes in financial and experience 320 3,774 6,571
Benefits paid 1,894 2,081 4,281
Scheme liabilities at end of period (53,698) (58,112) (54,472)
Basis of recognition of surplus
Macfarlane Group PLC, based on legal opinion provided, has an unconditional
right to a refund of surplus assets assuming the full settlement of plan
liabilities in the event of a wind up of the Macfarlane Group PLC Pension
& Life Assurance Scheme (1974) (the 'Scheme'). Furthermore, in the
ordinary course of business the trustees have no rights to unilaterally wind
up the Scheme, or otherwise augment the benefits due to members of the
Scheme. Based on these rights, any net surplus in the Scheme is recognised
in full.
Investments
The Trustees review the Scheme investments regularly and consult with the
Company regarding any changes.
Funding
Following the completion of the triennial actuarial valuation at 1 May 2023,
Macfarlane Group PLC is not required to pay further deficit reduction
contributions.
In June 2023, the UK High Court issued a ruling in the case of Virgin Media
Limited v NTL Pension Trustees II Limited and other ("the Virgin Media case")
relating to the validity of certain historical pension changes. The ruling
was upheld at the Court of Appeal in July 2024. After seeking external legal
advice the Group has concluded that they are not aware of any issues that
would require any adjustment to the defined benefit obligations and no further
action is required at this stage.
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
12. Deferred tax Tax losses less
accelerated capital allowances Other intangible assets Retirement
£000 £000 Benefit
Obligations Total
£000 £000
At 1 January 2024 (737) (5,919) (2,481) (9,137)
Acquisitions (5) (532) - (537)
Credited/(charged) in income statement
Current period (159) 539 7 387
Charged in other comprehensive income - - (68) (68)
At 30 June 2024 (901) (5,912) (2,542) (9,355)
Acquisitions (114) (1,829) - (1,943)
Credited/(charged) in income statement
Current period (246) 619 (26) 347
Credited in other comprehensive income - - 159 159
At 1 January 2025 (1,261) (7,122) (2,409) (10,792)
Acquisitions (686) (1,691) - (2,377)
Credited/(charged) in income statement
Current period 62 646 (38) 670
Charged in other comprehensive income - - 142 142
At 30 June 2025 (1,885) (8,167) (2,305) (12,357)
Deferred tax assets 321 - - 321
Deferred tax liabilities (2,206) (8,167) (2,305) (12,678)
At 30 June 2025 (1,885) (8,167) (2,305) (12,357)
13. Related party transactions
Related party transactions for 2024 are disclosed in note 26 of the 2024
Annual Report. The Directors are satisfied that, other than the changes in
the Retirement Benefit Obligations disclosed in note 11 above, there have been
no changes which could have a material effect on the financial position of the
Group in the first six months of the financial year.
Transactions between the Company and its subsidiaries have been eliminated on
consolidation and are not disclosed.
Details of individual and collective remuneration of the Company's Directors
and dividends received by the Directors for calendar year 2025 will be
disclosed in the Group's 2025 Annual Report. Peter Atkinson and Ivor Gray
hold option awards over 750,068 and 371,241 ordinary shares respectively under
the Macfarlane Group PLC Long Term Incentive Plan awarded in 2023 and 2024.
There are no other related party transactions during the six-month period
which require disclosure.
MACFARLANE GROUP PLC
SIX MONTHS ENDED 30 JUNE 2025
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
14. Post balance sheet events
There are no post balance sheet events requiring disclosure.
15. Interim Report
The interim report will be posted to shareholders on 15 September 2025.
Copies will be available from the registered office, 3 Park Gardens, Glasgow
G3 7YE and available on the Company's website, www.macfarlanegroup.com
(https://url.avanan.click/v2/r02/___http:/www.macfarlanegroup.com___.YXAxZTpzaG9yZWNhcDphOm86Y2Y5MzkxMzI0OTdlZDBmNzQ1OTE3YjkxYTU2ZmRjY2E6NzpmNzcyOmQ1MTQ3NzIxNDBlMTU1M2E4OTA1ZTk2OTcyMzdjMjFlOWNlODRhYTczMTViMDlhYjlmMmU1YWFkMWM0MzQ3Y2M6cDpGOk4)
, from that date.
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