REG - Macfarlane Group PLC - Trading Update

MacfarlaneAnnouncement

28/11/2024 07:00

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RNS Number : 9131N  Macfarlane Group PLC  28 November 2024

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."

 

 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 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.

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