REG - Macfarlane Group PLC - Trading Update

MacfarlaneAnnouncement

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RNS Number : 4389Q  Macfarlane Group PLC  10 July 2025

 

10 July 2025

Macfarlane Group PLC

("Macfarlane" or the "Group")

Trading update

Reduction in full year expectations

Macfarlane Group PLC is updating the market today in advance of its 2025
interim results due to be released on 28 August 2025.

·    In a year of challenge and economic uncertainty, we currently expect
full year 2025 Adjusted Operating Profit(1) to be approximately 10% below
2024.

·   Distribution is experiencing weaker than expected demand, delays in
new business decision making, pressure on gross margin due to the competitive
environment, rising input prices and slower than anticipated recovery of
labour and property-related cost increases.

·    Manufacturing Operations is performing robustly with good momentum
with our aerospace and defence related customers and the benefit of the
Polyformes acquisition, marginally offset by the slowdown in those sectors
where customers are being impacted by uncertainty over US tariffs.

·    We expect the Pitreavie business, acquired in January, to benefit
from the normal seasonal uplift in demand in H2 2025, together with additional
sales from in-house supply to Macfarlane Distribution.

·   The focus for the remainder of 2025 is the recovery of cost increases,
the implementation of additional cost saving actions and ensuring we convert
the strong new business pipeline.

·    Net bank debt remains well within the Group's £40m facility.

·    The recently launched share buyback programme will continue as
planned.

Commenting on today's announcement Aleen Gulvanessian, Chair of the Group,
said:

"We highlighted in our AGM statement that market conditions in 2025 were
challenging. It is disappointing that the momentum increase we experienced
early in Q2 2025 has not been maintained and as a result will impact our full
year performance.

Management is focused on implementing an action plan to recover cost increases
and execute against our strong pipeline of new business.

The Board remains confident that our strengthened sales team, differentiated
customer proposition and proven executional skills mean that the prospects for
the Group remain positive.

()We will provide a further update along with the announcement of our interim
results on 28 August 2025."

 

(1)Operating profit before amortisation and deferred contingent consideration
adjustments

 

 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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