REG - Macfarlane Group PLC - Trading Update

MacfarlaneAnnouncement

10/05/2022 12:00

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RNS Number : 9333K  Macfarlane Group PLC  10 May 2022

 

10 May 2022

ANNUAL GENERAL MEETING

TRADING UPDATE

Managing inflationary pressures; expectations for the full year unchanged

Macfarlane Group PLC ("Macfarlane") will today hold its Annual General Meeting
("AGM") at which the company will provide a Trading Update covering 2022 to
date.  Stuart Paterson, Chairman, will tell shareholders:

·    Macfarlane has made a solid start to 2022, with first quarter sales
and profits from continuing operations ahead of the same period in 2021.

·    Packaging Distribution sales grew by 16%, with recovery of supplier
driven price increases and the benefit of the acquisition of Carters Packaging
(Cornwall) Limited in March 2021.

·    Sales to industrial and hospitality sectors in 2022 have continued to
recover offset by weaker sales to e-commerce retail customers compared to the
strong demand seen in the same period in 2021.

·    Manufacturing Operations grew sales by 93%, reflecting the benefit
from the acquisition of GWP Holdings Limited in February 2021 and a strong
performance from Design and Manufacture, which mainly serves industrial
markets.

·    Net bank funds at the end Q1 2022 are broadly in line with the
position at 31 December 2021 (£2.5m). This remains well within the Group's
bank facilities of £30m, committed until December 2025.

·    We expect weaker sales in the e-commerce retail sector to continue
for the remainder of the year, offset by recovery in the industrial and
hospitality sectors and the benefit of new business wins. Macfarlane will
continue to manage inflationary pressures in input prices and operating costs,
mainly labour, energy and transport.

·    Our expectations for the full year are unchanged.

Stuart Paterson will say:

"We have consistently demonstrated our ability to address the challenges in
the market and we are confident that the effectiveness of our strategy, the
quality of our people and the resilience of our business model will ensure
2022 will be another year of growth for Macfarlane."

 

 Further enquiries:  Macfarlane Group                                                               Tel: 0141 333 9666
                     Stuart Paterson
                     Chairman
                     Peter Atkinson                  Chief Executive
                     Ivor Gray                             Finance
                     Director

                     Spreng Thomson                                                                 Tel: 0141 548 5191
                     Callum Spreng                                                                  Mob: 07803 970103

Legal Entity Identifier (LEI):  213800LVRYDERSJAAZ73

Notes to Editors:

·           Macfarlane Group PLC has been listed on the Premium
segment of the Main Market of the London Stock Exchange (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 high quality protective
packaging which help customers reduce supply chain costs, improve their
operational efficiencies 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 who design
and produce protective packaging for high value and fragile products.

·           Headquartered in Glasgow, Scotland, Macfarlane Group
employs over 900 people at 36 sites, principally in the UK, as well as in
Ireland 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 across a wide range of sectors, including: retail
e-commerce; consumer goods; food; logistics; mail order; electronics; defence,
automotive and aerospace.

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