REG - Macfarlane Group PLC - Trading Update

MacfarlaneAnnouncement

Today 07:00

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RNS Number : 2935E  Macfarlane Group PLC  22 October 2025

 

22 October 2025

Macfarlane Group PLC

("Macfarlane" or the "Group")

Trading update

Reduction in full year expectations

Macfarlane Group PLC is updating the market today.

Since the announcement of the Group's H1 2025 Results there has been a tragic
incident at Pitreavie, acquired by the Group in January 2025.

The financial impact of this, combined with slower improvements in trading in
Distribution, are the key contributors to a reduction in the Group's estimated
full year ("FY") 2025 Adjusted Operating Profit(1), now expected to be 20% to
25% below market expectations(2).

·    The Pitreavie FY 2025 performance will be materially below previous
management expectations. This is as a consequence of the recent fatal incident
at one of the Pitreavie sites, which has resulted in a temporary suspension of
operations at that facility. Any additional impact of the Pitreavie incident
will only become clear when the authorities have completed their
investigation.

·    The H2 2025 improvement in Distribution sales and gross margin has
been slower than expected, with market conditions still challenging.

·    Manufacturing Operations, excluding Pitreavie, continues to perform
robustly.

·    The focus for the remainder of 2025 is on stabilising the Pitreavie
business and continuing to implement performance improvement actions in the
Distribution business.

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

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

"Following the tragic incident at Pitreavie our thoughts are with all those
who have been impacted. Since then, steps have been taken and will continue to
be taken to provide such support and activities as are needed to ensure the
wellbeing of our colleagues.

The incident has naturally had a significant impact on the Macfarlane
business. The Board supports the management team in its focus on stabilising
the Pitreavie business and implementing actions to improve the performance of
the Distribution business."

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

(2) FY AOP market expectations £24.7m.

 

 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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