7 May 2024
Macfarlane Group
PLC
("Macfarlane" or the
"Group")
AGM trading
update
Full year expectations
unchanged
Macfarlane Group PLC will today hold
its Annual General Meeting at which Aleen Gulvanessian, Chair, will
provide a Trading Update covering 2024 to date.
·
As anticipated, the start of 2024 has been
challenging with first quarter sales and profits below the same
period in 2023.
·
Despite the slow start to the year, our
expectations for the full year are unchanged.
· Sales in the first
quarter were 9.5% lower than the same period in 2023 with continued
weak customer demand and price deflation with the profit impact
being partially offset by strong gross margins and the benefit of
acquisitions.
· Macfarlane
completed the acquisition in March 2024 of Allpack Packaging
Supplies Limited, a protective packaging distributor based in Bury
St Edmunds.
· The Group expects
an improved trading performance in the second half of 2024 through
the conversion of a strong new business pipeline combined with some
sales recovery from existing customers, good management of gross
margins, control of costs and further benefits from M&A
activity.
·
Net bank funds at 31 March 2024 were £4.7m, an
improvement on the position at 31 December 2023 (£0.5m). The Group continues to operate well within its
bank facilities of £35m and related covenants, which are committed
until December 2025.
Aleen Gulvanessian will further
comment:
"On presenting our 2023 results we
indicated that the challenging market conditions experienced in the
latter part of 2023 would continue into 2024 and this has been the
case. We expect some improvement in trading conditions in the
second half of 2024 and we have a clear plan of management actions
to enable the Group to continue its progress."
Further enquiries:
|
Macfarlane Group
|
Tel: 0141 333 9666
|
|
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Aleen
Gulvanessian
Chair
|
|
|
|
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 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.
