Macfarlane Group PLC on Thursday reported weaker first half performance but said it is ready to capture opportunities once market conditions recover.

The Glasgow, Scotland-based packaging company said pretax profit fell 2.9% to £9.7 million in the first half that ended June 30 from £10.0 million the previous year.

Revenue declined 8.5% to £129.6 million from £141.6 million, while cost of sales reduced by 13% to £78.1 million from £90.3 million.

Macfarlane raised its interim dividend by 2.1% to 0.96 pence per share from 0.94p.

Chair Aleen Gulvanessian said: ‘The challenging market conditions experienced in the latter part of 2023 have continued in 2024. The management team has responded effectively through an improvement in new business growth, the management of price deflation and actions to control operating costs. In addition, the group continues to execute its strategy, making two further high-quality acquisitions.’

In March, Macfarlane acquired Allpack Packaging Supplies Ltd for a total potential consideration of £4.7 million. This was followed post-period in July by the acquisition of Polyformes Ltd for a maximum cash consideration of £11.5 million, including an earn-out of up to £4.8 million over two years.

During the period, Allpack contributed to revenue while Polyformes is expected to be earnings enhancing in the second half.

‘Despite market headwinds, our operational and strategic performance is progressing, and the group is well-positioned to benefit as the macroeconomic outlook improves,’ Gulvanessian said.

Macfarlane shares fell 3.5% to 115.78 pence each in London on Thursday around midday.

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