TIDMMACF
RNS Number : 2544K
Macfarlane Group PLC
24 August 2023
24 August 2023
MACFARLANE GROUP PLC
("MACFARLANE GROUP", "THE COMPANY", "THE GROUP")
INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2023
RESILIENT H1 2023 PERFORMANCE - PROFIT EXPECTATIONS FOR THE FULL
YEAR UNCHANGED
H1 2023 H1 2022 Increase
Financial Highlights GBP000 GBP000 %
Revenue 141,612 139,209 2%
Operating profit before amortisation(1) 12,839 11,384 13%
-------- -------- ---------
Operating profit 10,800 9,604 12%
-------- -------- ---------
Profit before tax 9,987 8,857 13%
-------- -------- ---------
Profit for the period 7,510 6,888 9%
-------- -------- ---------
Interim dividend (pence) 0.94p 0.90p 4%
-------- -------- ---------
Basic earnings per share (pence) 4.74p 4.36p 9%
-------- -------- ---------
1 See note 2 for reconciliation of alternative performance
measure, operating profit before amortisation, to operating
profit.
Key highlights
-- Revenue grew by 2% versus H1 2022 to GBP141.6m.
-- Profit before tax at GBP10.0m increased by 13%.
-- Basic and diluted earnings per share were 4.74p per share (H1
2022: 4.36p per share) and 4.70p per share (H1 2022: 4.31p per
share) respectively.
-- Profit in line with expectations for the full year.
Packaging Distribution
-- Packaging Distribution grew revenue by GBP0.4m to GBP124.0m in H1 2023.
-- A good contribution from the acquisitions of PackMann in May
2022 and Gottlieb in April 2023, combined with organic growth in
Europe and new business wins, offset lower demand from customers in
the UK and Ireland.
-- Operating profit before amortisation increased by 6% to
GBP9.4m (H1 2022: GBP8.9m) through effective management of input
pricing which offset inflation in operating costs.
Manufacturing Operations
-- Manufacturing Operations delivered strong revenue growth of
13% to GBP17.7m (H1 2022: GBP15.7m).
-- A good contribution from Suttons, acquired in February 2023,
offset the slower demand in certain industrial markets.
-- Operating profit before amortisation increased 36% to GBP3.4m (H1 2022: GBP2.5m).
Group
-- Effective management of working capital resulted in net cash
inflow from operating activities of GBP20.3m (H1 2022:
GBP6.5m).
-- Net bank debt on 30 June 2023 was GBP3.3m - a cash inflow of
GBP0.1m from 31 December 2022, after GBP11.4m of investment in
acquisitions and GBP1.4m of capital expenditure. The Group is
operating well within its bank facility of GBP35.0m, increased from
GBP30.0m at 31 December 2022, which runs until 31 December
2025.
-- Pension scheme surplus increased to GBP12.8m at 30 June 2023
(31 December 2022: GBP10.2m). The improvement is due to continued
contributions from the Group and an increase in the discount rate,
offset by lower investment returns in H1 2023.
-- Interim dividend increased to 0.94p per share (H1 2022: 0.90p
per share) - to be paid on 12 October 2023 to shareholders on the
register as at 15 September 2023 (ex-dividend date 14 September
2023).
Aleen Gulvanessian, Chair of Macfarlane Group PLC, today said:
-
Trading
"The Group has demonstrated resilience in the first half of
2023, against the backdrop of a slowdown in customer demand. We
have executed two high quality acquisitions which are both
performing well, we continue to make good progress in Europe and
have positive new business momentum. The inflationary impact of
operating cost increases has been offset by effective input price
management. We opened our new Northern Innovation Lab in March 2023
which is already having early success in helping our customers
reduce their total cost of packaging and carbon footprint."
Outlook
"Whilst we expect the second half of 2023 to remain challenging,
our good progress in Europe, diverse customer base, strong new
business momentum and effective management of pricing and costs
mean that our profit expectations for the full year remain
unchanged."
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 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 with high quality protective
packaging products which help customers reduce supply chain costs, improve operational efficiencies and enhance
their brand presentation. The divisions are:
-- Packaging Distribution - Macfarlane Packaging Distribution is the leading UK distributor of a
comprehensive range of protective packaging products; and
-- 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 1,000 people at 37 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 a stock and serve
supply model 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/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' sales approach we reduce
our customers' 'Total Cost of Packaging' and their carbon
footprint. This is achieved through supplying effective packaging
solutions, optimising warehousing and transportation, reducing
damages and returns, and improving packaging efficiency.
"Significant Six" represents the six key costs in a customer's
packing process being transport, warehousing, administration,
damages and returns, productivity and customer experience.
H1 2023 H1 2022
GBP000 GBP000
Revenue 123,955 123,533
Cost of sales (81,563) (83,627)
Gross margin 42,392 39,906
Overheads (32,954) (31,022)
Operating profit before amortisation 9,438 8,884
Amortisation (1,461) (1,379)
Operating profit 7,977 7,505
The main features of Packaging Distribution performance in H1
2023 were:
-- Some weakening of demand from customers in the UK and Ireland.
-- Good organic growth in Europe through our "Follow the Customer" strategy.
-- Revenue growth of GBP6.3m achieved from the acquisition of
Gottlieb in April 2023 and PackMann in May 2022.
-- New business in H1 2023 24% higher than H1 2022, with early
success from our new Northern Innovation Lab.
-- Effective management of input prices which has offset the
impact of inflationary increases in operating costs, particularly
energy and labour.
-- Increase in operating profit before amortisation of 6%.
-- Improvement in operating profit before amortisation as a
percentage of revenue to 7.6% (H1 2022: 7.2%).
I n terim Results - Management Report (continued)
The key areas we will focus on in H2 2023 are to:
-- Accelerate new business momentum through effective use of our
leading sales tools and processes - "Packaging Optimiser" ' ,
Significant Six and our Innovation Labs.
-- Support our customers to reduce their carbon footprint
through offering more sustainable packaging solutions.
-- Continue to effectively manage input price changes.
-- Achieve benefits from our information technology investments
in Microsoft Dynamics, Slimstock, and Warehouse Management.
-- Introduce improvements to our web-based solutions to provide
customers with access to our full range of products and services
more easily.
-- Accelerate the progress we have made in Europe through our
"Follow the Customer" programme and PackMann, acquired in H1
2022.
-- Reduce operating costs through efficiency programmes in sales, logistics and administration.
-- Plan our second major site consolidation in the East Midlands.
-- Maintain our focus on working capital management to
facilitate future investment and manage effectively the ongoing bad
debt risk within the current economic environment.
-- Supplement organic growth through progressing further
high-quality acquisitions in the UK and Europe.
' Packaging Optimiser is a Macfarlane developed software tool
that measures the financial and carbon benefits of the Significant
Six selling approach.
Manufacturing Operations comprises our Packaging Design and
Manufacture business as well as GWP, acquired in February 2021, and
Suttons acquired in March 2023.
Manufacturing Operations designs, manufactures, assembles, and
distributes bespoke packaging solutions for customers requiring
cost-effective methods of protecting high value products in storage
and transit. The primary raw materials are corrugate, timber and
foam. The businesses operate from five manufacturing sites, in
Grantham, Westbury, Swindon, Salisbury and Chatteris, supplying
both directly to customers and through the national RDC network of
the Packaging Distribution business.
Key market sectors are defence, aerospace, medical equipment,
electronics, automotive, e-commerce retail and household equipment.
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 2023 H1 2022
GBP000 GBP000
Revenue 17,657 15,676
Cost of sales (8,729) (8,486)
Gross margin 8,928 7,190
Overheads (5,527) (4,690)
Operating profit before amortisation 3,401 2,500
Amortisation (578) (401)
Operating profit 2,823 2,099
Good growth in operating profit of 34% has been achieved,
despite slowing demand in certain industrial sectors, by:
-- A strong contribution from the acquisition of Suttons in February 2023.
-- Effective management of input pricing to offset increasing
operating costs, particularly energy and labour.
I nter im Results - Management Report (continued)
The priorities for Manufacturing Operations in the second half
of 2023 are to :
-- Increase momentum of new business growth in target sectors e.g. medical and defence.
-- Prioritise new sales activity of our higher added-value bespoke composite pack product range.
-- Work with our customers to effectively manage material price changes.
-- Continue to strengthen the relationship with our Packaging
Distribution businesses to create both sales and cost
synergies.
-- Supplement organic growth through progressing further high-quality acquisitions in the UK.
Summary and Future Prospects
Macfarlane Group's businesses all have strong market positions
with differentiated product and service offerings. We have a
flexible business model and we effectively implement our strategic
plan, which is reflected in consistent profit growth and cash
generation over a sustained period.
Our future performance continues to depend on our effectiveness
in growing sales and managing input prices, increasing efficiencies
and bringing high quality acquisitions into the Group. There will
continue to be challenges in 2023, with rising costs and weak
demand. However, our strategy and business model have proved to be
resilient and we expect to deliver further growth in 2023 and
beyond.
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 24 to 28 in our Annual Report and Accounts
for 2022 (available on our website at www.macfarlanegroup.com ).
These remain the same for the remaining six months of the current
financial year and are summarised below:
-- Due to a range of prolonged geopolitical and economic
uncertainties within the UK and other markets, there is an
increased risk that we are entering into a challenging trading
environment. If this materialises, the length and depth of such an
environment is unknown and may 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 .
-- Failure to respond to strategic shifts in the market,
including the impact of weaknesses in the economy as well as
disruptive behaviour from competitors and changing customer needs
(e.g. the move towards online retail) could limit the Group's
ability to continue to grow revenues.
-- Customers are increasingly focused on the environmental
impacts of packaging, changing their buying behaviours in response
to climate and sustainability concerns. Some investors are looking
to invest in companies that demonstrate strong ESG credentials.
There is increasing regulatory focus around reporting disclosures
and new requirements, such as the Plastic Tax introduced from April
2022. This cost is recharged directly onto our customers. If the
Group is not proactive and transparent in how it is responding to
environmental changes, this could lead to a loss of employees,
customers and investors.
-- The Group's businesses are impacted by commodity-based raw
material prices and manufacturer energy costs, with profitability
sensitive to input price changes including currency fluctuations.
The principal components are corrugated paper, polythene films,
timber and foam, with changes to paper and oil prices having a
direct impact on the price we pay to our suppliers.
-- The Group's growth strategy has included a number of
acquisitions in recent years. There is a risk that such
acquisitions may not be available on acceptable terms in the
future. It is possible that acquisitions will not be successful due
to the loss of key people or customers following acquisition or
acquired businesses not performing at the level expected. This
could potentially lead to impairment of the carrying value of the
related goodwill and other intangible assets. Execution risks
around the failure to successfully integrate acquisitions following
conclusion of the earn-out period also exist.
-- The Group has a property portfolio comprising 1 owned site
and 52 leased sites. This multi-site portfolio gives rise to risks
in relation to ongoing lease costs, dilapidations and fluctuations
in value.
-- 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.
-- The Group needs continuous access to funding to meet its
trading obligations and to support organic growth and acquisitions.
There is a risk that the Group may be unable to obtain funds and
that such funds will only be available on unfavourable terms. The
Group's borrowing facility comprises a committed facility of up to
GBP35m (GBP5m increase from 31 December 2022). This includes
requirements to comply with specified covenants, with a breach
potentially resulting in Group borrowings being subject to more
onerous conditions.
-- The Group's defined benefit pension scheme is sensitive to a
number of key factors including investment returns, the discount
rates used to calculate the scheme's liabilities and mortality
assumptions. Small changes in these assumptions could cause
significant movements in the pension surplus/deficit.
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 2023 were
A. Gulvanessian Chair
P.D. Atkinson Chief Executive
I. Gray Finance Director
R. McLellan Non-Executive Director/Senior Independent Director
J.W.F. Baird Non-Executive Director
L.D. Whyte 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 24 August 2023 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 MONTHSED 30 JUNE 2023
Six Six Year
months months to 31
to to December
30 June 30 June 2022
2023 2022 GBP000
GBP000 GBP000
Note
Continuing operations
Revenue 4 141,612 139,209 290,431
Cost of sales (90,292) (92,113) (192,374)
Gross profit 51,320 47,096 98,057
Distribution costs (5,265) (5,169) (10,736)
Administrative expenses (35,255) (32,323) (65,825)
Operating profit 4 10,800 9,604 21,496
Finance costs 5 (813) (747) (1,562)
Profit before tax 9,987 8,857 19,934
Tax 6 (2,477) (1,882) (4,210)
Profit for the period from
continuing operations 4 7,510 6,975 15,724
Discontinued operations
Loss for the period from
discontinued operations - (87) (87)
Profit for the period 7,510 6,888 15,637
Earnings per share from continuing
operations 8
Basic 4.74p 4.41p 9.94p
Diluted 4.70p 4.36p 9.84p
Earnings per share from continuing
and discontinued operations 8
Basic 4.74p 4.36p 9.89p
Diluted 4.70p 4.31p 9.78p
MACFARLANE GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
FOR THE SIX MONTHSED 30 JUNE 2023
Six Six Year
months to months to 31
30 June to December
2023 30 June 2022
GBP000 2022 GBP000
GBP000
Items that may be reclassified Note
to profit or loss
Foreign currency translation differences (64) 5 45
Items that will not be reclassified
to profit or loss
Remeasurement of pension scheme
liability 11 1,700 (825) (82)
Tax recognised in other comprehensive
income
Tax on remeasurement of pension
scheme liability 12 (425) 206 21
Other comprehensive income for
the period, net of tax 1,211 (614) (16)
Profit for the period 7,510 6,888 15,637
Total comprehensive income for
the period 8,721 6,274 15,621
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(UNAUDITED)
FOR THE SIX MONTHSED 30 JUNE 2023
Note Share Share Revaluation Own Translation Retained
Capital Premium Reserve Shares Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January 2023 39,584 13,573 70 (7) 216 52,584 106,020
Comprehensive
income
Profit for the
period - - - - - 7,510 7,510
Foreign currency
translation differences - - - - (64) - (64)
Remeasurement of
pension scheme
liability 11 - - - - - 1,700 1,700
Tax on remeasurement
of
pension scheme
liability 12 - - - - - (425) (425)
Total comprehensive
income - - - - (64) 8,785 8,721
Transactions with
shareholders
Dividends 7 - - - - - (3,990) (3,990)
Share-based payments - - - - - 254 254
Total transactions
with
shareholders - - - - - (3,736) (3,736)
At 30 June 2023 39,584 13,573 70 (7) 152 57,633 111,005
MACFARLANE GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(UNAUDITED)
FOR THE SIX MONTHSED 30 JUNE 2022
Note Share Share Revaluation Own Translation Retained
Capital Premium Reserve Shares Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January 2022 39,453 13,148 70 - 171 42,052 94,894
Comprehensive
income
Profit for the
period - - - - - 6,888 6,888
Foreign currency
translation differences - - - - 5 - 5
Remeasurement of
pension scheme
liability 11 - - - - - (825) (825)
Tax on remeasurement
of
pension scheme
liability 12 - - - - - 206 206
Total comprehensive
income - - - - 5 6,269 6,274
Transactions with
shareholders
Dividends 7 - - - - - (3,677) (3,677)
New shares issued 131 425 - (7) - (549) -
Share-based payments - - - - - 337 337
Total transactions
with
Shareholders 131 425 - (7) - (3,889) (3,340)
At 30 June 2022 39,584 13,573 70 (7) 176 44,432 97,828
MACFARLANE GROUP PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2022
Note Share Share Revaluation Own Translation Retained
Capital Premium Reserve Shares Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January 2022 39,453 13,148 70 - 171 42,052 94,894
Comprehensive
income
Profit for the
period - - - - - 15,637 15,637
Foreign currency
translation differences - - - - 45 - 45
Remeasurement of
pension scheme
liability 11 - - - - - (82) (82)
Tax on remeasurement
of
pension scheme
liability 12 - - - - - 21 21
Total comprehensive
income - - - - 45 15,576 15,621
Transactions with
shareholders
Dividends 7 - - - - - (5,102) (5,102)
New shares issued 131 425 - (7) - (549) -
Share-based payments - - - - - 607 607
Total transactions
with
shareholders 131 425 - (7) - (5,044) (4,495)
At 31 December
2022 39,584 13,573 70 (7) 216 52,584 106,020
MACFARLANE GROUP PLC
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) AT 30 JUNE
2023
30 June 30 June 31 December
2023 2022 2022
Note GBP000 GBP000 GBP000
Non-current assets
Goodwill and other intangible
assets 86,531 79,447 75,685
Property, plant and equipment 9,076 7,591 7,863
Right of use assets 35,287 33,807 33,938
Trade and other receivables 35 35 38
Deferred tax assets 12 106 19 105
Retirement benefit surplus 11 12,771 8,847 10,199
Total non-current assets 143,806 129,746 127,828
Current assets
Inventories 19,929 25,150 22,608
Trade and other receivables 54,878 60,833 59,347
Current tax asset 540 - 675
Cash and cash equivalents 10 5,863 6,804 5,706
Total current assets 81,210 92,787 88,336
Total assets 4 225,016 222,533 216,164
Current liabilities
Trade and other payables 53,176 61,184 54,577
Provisions 723 1,370 1,769
Current tax liabilities 1,024 524 304
Lease liabilities 10 7,042 6,139 6,641
Bank borrowings 10 9,190 16,473 9,143
Total current liabilities 71,155 85,690 72,434
Net current assets 10,055 7,097 15,902
Non-current liabilities
Deferred tax liabilities 12 10,517 8,241 8,222
Trade and other payables 1,576 908 -
Provisions 1,583 1,848 1,560
Lease liabilities 10 29,180 28,018 27,928
Total non-current liabilities 42,856 39,015 37,710
Total liabilities 114,011 124,705 110,144
Net assets 4 111,005 97,828 106,020
Equity
Share capital 39,584 39,584 39,584
Share premium 13,573 13,573 13,573
Revaluation reserve 70 70 70
Own shares (7) (7) (7)
Translation reserve 152 176 216
Retained earnings 57,633 44,432 52,584
Total equity 111,005 97,828 106,020
MACFARLANE GROUP PLC
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
FOR THE SIX MONTHSED 30 JUNE 2023
Six Six months Year
months to to 31
to 30 June December
30 June
2023 2022 2022
Note GBP000 GBP000 GBP000
Profit/(loss) before tax from:
Continuing operations 9,987 8,857 19,934
Discontinued operations - (87) (87)
Total operations 9,987 8,770 19,847
Adjustments for:
Amortisation of intangible assets 2,039 1,780 3,577
Depreciation of property, plant,
equipment 814 693 1,498
Depreciation of right-of-use assets 3,843 3,768 7,542
(Gain)/loss on disposal of property,plant,equipment (4) 132 71
Loss on disposal of subsidiaries - 87 87
Share-based payment expense 254 337 607
Finance costs 813 747 1,562
Operating cash flows before movements
in working capital 17,746 16,314 34,791
Decrease/(increase) in inventories 3,253 (1,517) 1,025
Decrease/(increase) in receivables 5,994 (586) 285
Decrease in payables (1,793) (2,923) (9,027)
Decrease in provisions (1,023) (360) (249)
Pension contributions less current
service costs (625) (1,322) (1,838)
Cash generated from operations 23,552 9,606 24,987
Income taxes paid (2,192) (2,322) (5,251)
Interest paid (1,060) (830) (1,738)
Net cash inflow from operating
activities 20,300 6,454 17,998
Investing activities
Acquisitions 9 (11,370) (9,268) (8,655)
Proceeds from sales of subsidiaries - 166 166
Proceeds on disposal of property, plant
and equipment 60 92 181
Purchases of property, plant and
equipment (1,366) (2,271) (3,285)
Net cash flows from investing
activities (12,676) (11,281) (11,593)
Financing activities
Dividends paid 7 (3,990) (3,677) (5,102)
Drawdown of bank borrowings (316) 5,957 (865)
Repayment of lease obligations 10 (3,524) (3,640) (7,215)
Net cash flows from financing activities (7,830) (1,360) (13,182)
Net decrease in cash and cash equivalents (206) (6,187) (6,777)
Cash and cash equivalents at beginning
of period 5,346 12,123 12,123
Cash and cash equivalents at end
of period 5,140 5,936 5,346
MACFARLANE GROUP PLC
SIX MONTHSED 30 JUNE 2023
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
Reconciliation to condensed consolidated cash flow statement
Six months Six months Year to
to 30 June to 30 June 31 December
2023 2022 2022
GBP000 GBP000 GBP000
Cash and cash equivalents per the 10 5,863 6,804 5,706
balance sheet
Bank overdraft (723) (868) (360)
Balances per the cash flow statement 5,140 5,936 5,346
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 2022 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 2022. There were no major
changes from the adoption of new IFRS's in 2023.
Critical judgements and 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 period. Due to the
nature of estimation, the actual outcomes may well differ from
these estimates.
Critical judgements
The directors have assessed the impact of climate change and
consider that this does not have a significant impact on these
financial statements.
Property provisions of GBP2.3m have been recognised as at 30
June 2023 (31 December 2022: GBP3.3m), 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.
Key sources of estimation uncertainty
The key sources of estimation uncertainty that have a
significant effect on the carrying amounts of assets and
liabilities are discussed below:
-- The determination of any defined benefit pension scheme asset
or liability is based on assumptions determined with independent
actuarial advice. The key assumptions used include discount rate
and inflation rate assumptions, 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.
-- The provision held against trade receivables considers an
expected credit loss model and related estimates of recoverable
amounts. Whilst every attempt is made to ensure that the provision
held against doubtful trade receivables is as accurate as possible,
there remains a risk that the provision may not match the level of
debt which ultimately proves uncollectable .
MACFARLANE GROUP PLC
SIX MONTHSED 30 JUNE 2023
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
1. Basis of preparation
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 committed b anking facilities with suitable terms
and conditions to accommodate the requirements of the Group's
operations. Credit risk is managed by applying considerable rigour
in managing the Group's trade receivables. Although the current
economic climate indicates an increased level of risk, the
Directors believe that the Group is adequately placed to manage its
financial risks effectively.
The Group's banking arrangement with Bank of Scotland PLC
comprises a committed facility of GBP35m, expiring in December
2025, secured over the assets of Macfarlane Group UK Limited, GWP
Group Limited and GWP Holdings Limited subsidiaries of Macfarlane
Group PLC and bearing interest at commercial rates. The facility
has financial covenants for interest cover and trade receivables
headroom.
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 24 August 2023. As in previous years, the set of
condensed financial statements for the half-year is unaudited.
2. Alternative performance measure
In addition to the various performance measures defined under
IFRS the Group reports operating profit before amortisation as a
measure to assist in understanding the underlying performance of
the Group and its businesses when compared to similar companies.
Operating profit before amortisation is not defined under IFRS and,
as a result, does not comply with Generally Accepted Accounting
Practice ("GAAP") and is therefore known as an alternative
performance measure. Accordingly, this measure, which is not
designed to be a substitute for any of the IFRS measures of
performance, may not be directly comparable with other companies'
alternative performance measures. Operating profit before
amortisation is defined as operating profit before customer
relationships and brand values amortisation reconciled in the table
below.
Six months Six months Year to
to 30 June to 30 June 31
2023 2022 December
Continuing operations GBP000 GBP000 2022
GBP000
Operating profit before amortisation 12,839 11,384 25,073
Customer relationships/brand values amortisation (2,039) (1,780) (3,577)
Operating profit 10,800 9,604 21,496
MACFARLANE GROUP PLC
SIX MONTHSED 30 JUNE 2023
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
3. General information
Comparative figures for the year ended 31 December 2022 are
extracted from Macfarlane Group's statutory accounts for 2022. The
information for the year ended 31 December 2022 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 23 February 2023 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.
4. Segmental information
The Group's principal business segment is Packaging
Distribution, comprising the distribution of packaging materials
and supply of storage services in the UK, Ireland and Europe. Other
operations for the design, manufacture and assembly of timber,
corrugated and foam-based packaging materials in the UK comprise
one segment headed Manufacturing Operations.
Six months Six months Year to
to 30 June to 30 June 31
2023 2022 December
GBP000 GBP000 2022
GBP000
Group segment - total revenue
Packaging Distribution 123,955 123,533 259,651
Manufacturing Operations 20,194 17,739 35,045
Inter-segment revenue (2,537) (2,063) (4,265)
Revenue 141,612 139,209 290,431
Trading results - continuing operations
Packaging Distribution
Total and external revenue 123,955 123,533 259,651
Cost of sales (81,563) (83,627) (176,193)
Gross profit 42,392 39,906 83,458
Net operating expenses (32,954) (31,022) (63,590)
Operating profit before amortisation 9,438 8,884 19,868
Amortisation (1,461) (1,379) (2,774)
Operating profit 7,977 7,505 17,094
Manufacturing Operations
Total revenue 20,194 17,739 35,045
Inter-segment revenue (2,537) (2,063) (4,265)
External revenue 17,657 15,676 30,780
Cost of sales (8,729) (8,486) (16,181)
Gross profit 8,928 7,190 14,599
Net operating expenses (5,527) (4,690) (9,394)
Operating profit before amortisation
and impairment 3,401 2,500 5,205
Amortisation (578) (401) (803)
Operating profit 2,823 2,099 4,402
MACFARLANE GROUP PLC
SIX MONTHSED 30 JUNE 2023
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
4. Segmental information (continued)
Six months Six months Year to
to 30 June to 30 June 31
2023 2022 December
GBP000 GBP000 2022
GBP000
Operating profit - continuing operations
Packaging Distribution 7,977 7,505 17,094
Manufacturing Operations 2,823 2,099 4,402
Operating profit 10,800 9,604 21,496
Finance costs (note 5) (813) (747) (1,562)
Profit before tax 9,987 8,857 19,934
Tax (note 6) (2,477)7, (1,882) (4,210)
Profit for the period from continuing
operations 7,510 6,975 15,724
Loss for the period from discontinued
operations - (87) (87)
Profit for the period 7,510 6,888 15,637
30 June 30 June 31 December
2023 2022 2022
GBP000 GBP000 GBP000
Total assets
Packaging Distribution 183,439 192,221 188,866
Manufacturing Operations 41,577 30,312 27,298
Total assets 225,016 222,533 216,164
Net assets
Packaging Distribution 81,094 77,718 85,929
Manufacturing Operations 29,911 20,110 20,091
Net assets 111,005 97,828 106,020
5. Finance costs Six months Six months Year to
to 30 to 30 June 31
June 2022 December
2023 GBP000 2022
GBP000 GBP000
Interest on bank borrowings 399 279 616
Interest on leases 661 551 1,122
Finance income relating to defined benefit
pension scheme (note 11) (247) (83) (176)
Total finance costs from continuing operations 813 747 1,562
MACFARLANE GROUP PLC
SIX MONTHSED 30 JUNE 2023
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
6. Tax Six months Six months Year to
to 30 June to 30 June 31
2023 2022 December
GBP000 GBP000 2022
GBP000
Current tax
UK corporation tax 2,376 1,786 3,680
Foreign tax 291 113 253
Prior year adjustments 24 (21) (21)
Total current tax 2,691 1,878 3,912
Deferred tax current year (214) 4 207
prior year adjustments - - 91
Total deferred tax (note 12) (214) 4 298
Total tax 2,477 1,882 4,210
Tax for the six months ended 30 June 2023 has been charged at
23.50% (2022 - 19.00%) representing the best estimate of the
effective tax charge for the full year. Deferred tax assets and
liabilities at 30 June 2023 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 MONTHSED 30 JUNE 2023
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
7. Dividends Six months Six months Year to
to 30 June to 30 June 31
2023 2022 December
GBP000 GBP000 2022
GBP000
Amounts recognised as distributions to equity holders
in the period
Final dividend 2.52p per share (2022: 2.33
per share) 3,990 3,677 3,677
Interim dividend (2022: 0.90p per share) - - 1,425
Distributions in the period 3,990 3,677 5,102
An interim dividend of 0.94p per share, payable on 12 October
2023, was declared on 24 August 2023 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
2023 2022 2022
Earnings GBP000 GBP000 GBP000
Profit for the period from continuing operations 7,510 6,975 15,724
Loss for the period from discontinued operations - (87) (87)
Profit for the period from continuing and
discontinued operations 7,510 6,888 15,637
30 June 30 June 31 December
Number of shares '000 2023 2022 2022
Weighted average number of shares in issue
for the
purposes of basic earnings per share 158,337 157,987 158,162
Effect of Long-Term Incentive Plan awards
in issue 1,574 1,834 1,661
Weighted average number of shares in issue
for the
purposes of diluted earnings per share 159,911 159,821 159,823
Basic earnings per share from continuing
operations 4.74p 4.41p 9.94p
Diluted earnings per share from continuing
operations 4.70p 4.36p 9.84p
Basic earnings per share from discontinued
operations -p (0.06)p (0.06)p
Diluted earnings per share from discontinued
operations -p (0.05)p (0.05)p
Basic earnings per share from continuing
and discontinued operations 4.74p 4.36p 9.89p
Diluted earnings per share from continuing
and discontinued operations 4.70p 4.31p 9.78p
MACFARLANE GROUP PLC
SIX MONTHSED 30 JUNE 2023
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
9. Acquisitions
On 3 March 2023, Macfarlane Group UK Limited ("MGUK") acquired
100% of A.E. Sutton Limited, for a total consideration of GBP13.5m
and inherited net cash/bank balances of GBP5.3m. Contingent
consideration of GBP2.5m is payable in the second quarters of 2024
and 2025, subject to certain trading targets being met in the two
twelve-month periods ending on 29 February 2024 and 28 February
2025 respectively.
On 28 April 2023, MGUK acquired 100% of A & G Holdings
Limited, the parent company of Gottlieb Packaging Materials
Limited, for a total consideration of GBP4.2m and inherited net
cash/bank balances of GBP0.9m. Contingent consideration of GBP0.8m
is payable in the second quarters of 2024 and 2025, subject to
certain trading targets being met in the two twelve-month periods
ending on 30 April 2024 and 2025 respectively.
GBP2.1m was paid in 2023 to the sellers of GWP Holdings Limited,
acquired in 2021, as the profit target was met for the twelve-month
period ending 28 February 2023. GBP0.8m was held back subject to
conclusion of an outstanding warranty claim.
GBP0.8m was paid in 2023 to the sellers of Carters (Cornwall)
Limited, acquired in 2021, as the profit target was met for the
twelve-month period ending 31 March 2023.
Contingent considerations are recognised as a liability in trade
and other payables and are remeasured to fair value of GBP3.8m at
the balance sheet date based on a range of outcomes between GBPNil
and GBP5.6m. Trading in the post-acquisition period supports the
remeasured value of GBP3.8m.
Fair values assigned to net assets acquired and consideration
paid and payable are set out below:-
Six months
to 30 June
2023
Net assets acquired GBP000
Other intangible assets 7,838
Property, plant and equipment 2,241
Inventories 574
Trade and other receivables 1,522
Cash and bank balances 6,194
Trade and other payables (1,817)
Current tax liabilities (361)
Lease liabilities (1,521)
Deferred tax liabilities (2,083)
Net assets acquired 12,587
Goodwill 5,047
Total consideration 17,634
Contingent consideration on acquisitions
Current year (2,985)
Prior years 2,915
Total cash consideration 17,564
Net cash outflow arising on acquisition
Cash consideration (17,564)
Cash and bank borrowings acquired 6,194
Net cash outflow (11,370)
MACFARLANE GROUP PLC
SIX MONTHSED 30 JUNE 2023
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
10. Analysis of changes in net
debt
Cash and
cash Bank Lease Total
equivalents borrowing liabilities debt
GBP000 GBP000 GBP000 GBP000
Total debt
At 1 January 2022 12,315 (9,840) (34,942) (32,467)
Non-cash movements
Acquisitions - - (739) (739)
Disposals - - 163 163
New leases - - (1,743) (1,743)
Exchange movements - - (4) (4)
Lease modifications - - (532) (532)
Cash movements (5,511) (6,633) 3,640 (8,504)
At 30 June 2022 6,804 (16,473) (34,157) (43,826)
Non-cash movements
Acquisitions - - (895) (895)
Disposals - - 74 74
New leases - - (2,803) (2,803)
Exchange movements - - 4 4
Lease modifications - - (367) (367)
Cash movements (1,098) 7,330 3,575 9,807
At 31 December 2022 5,706 (9,143) (34,569) (38,006)
Non-cash movements
Acquisitions - - (1,521) (1,521)
Disposals - - 52 52
New leases - - (634) (634)
Exchange movements - - 57 57
Lease modifications - - (3,131) (3,131)
Cash movements 157 (47) 3,524 3,634
At 30 June 2023 5,863 (9,190) (36,222) (39,549)
Total cash movements for 2022 (6,609) 697 7,215 1,303
Net bank debt Net bank
debt
GBP000
At 30 June 2023 5,863 (9,190) (3,327)
At 31 December 2022 5,706 (9,143) (3,437)
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 MONTHSED 30 JUNE 2023
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 2020 updated to 30
June 2022, 31 December 2022 and 30 June 2023. 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 2023 2022 2022
GBP000 GBP000 GBP000
Equities
UK equity funds 6,005 7,304 6,616
Overseas equity funds 15,608 13,234 13,671
Multi-asset diversified growth funds 12,259 27,061 12,674
Bonds
Multi asset credit fund 1,024 - -
Liability-driven Investment funds 20,956 14,314 23,352
Other investments
European loan fund 7,024 6,332 6,546
Secured property income fund 5,638 7,293 5,670
Cash 736 1,010 1,957
Fair value of Scheme investments 69,250 76,548 70,486
Present value of Scheme liabilities (56,479) (67,701) (60,287)
Pension scheme surplus 12,771 8,847 10,199
These amounts were calculated using the following principal
assumptions as required under IAS 19:
Assumptions 30 June 2023 30 June 2022 31 December
2022
Discount rate 5.30% 3.80% 4.80%
Rate of increase in pensionable
salaries 0.00% 0.00% 0.00%
Rate of increase in pensions 3% or 5% 3% or 5% 3% or 5%
in payment for fixed for fixed for fixed
increases increases increases
or 3.17% for or 3.22% for or 3.17% for
LPI LPI LPI
PIE take up rate 65% 65% 65%
Inflation assumption
(RPI) 3.40% 3.30% 3.40%
Inflation assumption
(CPI) 2.80% 2.80% 2.80%
Life expectancy beyond normal
retirement age of 65
Scheme member aged 55 Male 22.6 22.9 years 22.6 years
years
Female 24.3 years 24.5 years 24.2 years
Scheme member aged 22.1 years 22.3 years 22.0 years
65 Male
Female 23.5 years 23.7 years 23.4 years
Average uplift for
GMP service 0.40% 0.40% 0.40%
Six months Six months Year to 31
to 30 June to 30 June December
2023 2022 2022
GBP000 GBP000 GBP000
Movement in scheme surplus in the period
At start of period 10,199 8,267 8,267
Current service cost - (24) (42)
Employer contributions 625 1,346 1,991
Past service costs (curtailed due to
closure of the scheme) - - (111)
Net finance income 247 83 176
Re-measurement of pension scheme liability
in the period 1,700 (825) (82)
At end of period 12,771 8,847 10,199
MACFARLANE GROUP PLC
SIX MONTHSED 30 JUNE 2023
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 2023 2022 2022
GBP000 GBP000 GBP000
Discount rate movement of +3.0% 20,327 32,495 21,698
Inflation rate movement of +0.25% (541) (848) (577)
Mortality movement of +0.1 year in age
rating 127 203 136
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
2023 2022 2022
GBP000 GBP000 GBP000
Movement in fair value of Scheme investments
Scheme investments at start of period 70,486 100,423 100,423
Interest income 1,645 947 1,886
Return on scheme assets (exc. amount
shown in interest income) (1,800) (23,758) (29,475)
Contributions from sponsoring companies 625 1,346 1,991
Contribution from scheme members - 4 9
Benefits paid (1,706) (2,414) (4,348)
Scheme investments at end of period 69,250 76,548 70,486
Movement in present value of Scheme
liabilities
Scheme liabilities at start of period (60,287) (92,156) (92,156)
Normal service costs - (24) (42)
Past service costs (curtailed due to
closure of the scheme) - - (111)
Interest cost (1,398) (864) (1,710)
Contribution from scheme members - (4) (9)
Actuarial gain due to the changes in
financial and experience 3,500 22,933 29,393
Benefits paid 1,706 2,414 4,348
Scheme liabilities at end of period (56,479) (67,701) (60,287)
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 2020, Macfarlane Group PLC is paying deficit reduction
contributions of GBP1.25m per annum with a deficit recovery period
of 4 years. The Group paid a further GBP0.7m into the Scheme in H1
2022 to satisfy the debt agreed with the trustees in relation to
the cessation of Macfarlane Labels Limited as a sponsoring
employer.
MACFARLANE GROUP PLC
SIX MONTHSED 30 JUNE 2023
NOTES TO THE CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
12. Deferred tax Tax losses
less Other intangible Retirement
accelerated assets Benefit
capital allowances GBP000 Obligations Total
GBP000 GBP000 GBP000
At 1 January 2022 (319) (5,065) (2,069) (7,453)
Acquisitions - (971) - (971)
Credited/(charged) in income
statement
Current period 4 341 (349) (4)
Charged in other comprehensive
income - - 206 206
At 30 June 2022 (315) (5,695) (2,212) (8,222)
Acquisitions - 584 - 584
(Charged)/credited in income
statement
Current period (488) 348 (154) (294)
Charged in other comprehensive
income - - (185) (185)
At 1 January 2023 (803) (4,763) (2,551) (8,117)
Acquisitions (124) (1,959) - (2,083)
Credited/(charged) in income
statement
Current period (31) 462 (217) 214
Credited in other comprehensive
income - - (425) (425)
At 30 June 2023 (958) (6,260) (3,193) 10,411
Deferred tax assets 106 - - 106
Deferred tax liabilities (1,064) (6,260) (3,193) (10,517)
At 30 June 2023 (958) (6,260) (3,193) (10,411)
13. Related party transactions
Related party transactions for 2022 are disclosed in note 27 of
the 2022 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 2023 will be disclosed in the Group's 2023 Annual
Report. Peter Atkinson and Ivor Gray hold option awards over
1,468,294 and 658,910 ordinary shares respectively under the
Macfarlane Group PLC Long Term Incentive Plan awarded in 2020,
2021, 2022 and 2023.
There are no other related party transactions during the
six-month period which require disclosure.
MACFARLANE GROUP PLC
SIX MONTHSED 30 JUNE 2023
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 11
September 2023. Copies will be available from the registered
office, 3 Park Gardens, Glasgow G3 7YE and available on the
Company's website, www.macfarlanegroup.com , from that date.
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IR BUGDILXDDGXX
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