25 November 2021
Trading Update
Macfarlane Group PLC ("the Group") today provides an update on trading for the period to 31 October 2021.
· The Group's performance since the first half has been robust in the face of continuing challenging market conditions. The Board now expects the Group will exceed its previous expectations for the full year.
· Sales revenue has grown by 25% in the year to date and Group profit before tax is well ahead of the corresponding period in 2020.
· Both acquisitions made in 2021 are performing well.
· We expect the remainder of 2021 to remain challenging with input price inflation, supply constraints on certain raw materials and increased operating costs due to staffing pressures. Some customers are also experiencing supply chain issues which are affecting their demand for packaging. However, the Group's management team remains focussed on effectively managing these challenges.
· Net bank debt at 31 October 2021 reduced to £2.0m (30 June 2021: £8.7m).
Stuart Paterson, Chairman of Macfarlane Group, said:
"The Macfarlane Group performance has been robust in demanding market conditions and is testament to the strength of our business model and the diligence of our people. At the interim results we indicated that we expected headwinds in the second half of 2021, so it is particularly pleasing to be once again raising our expectations for the full year."
| Further enquiries: | Macfarlane Group | Tel: 0141 333 9666 |
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| Stuart Paterson Chairman |
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| Peter Atkinson Chief Executive |
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| Ivor Gray Finance Director |
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| Spreng Thomson |
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| 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 high quality protective packaging and labels which help customers reduce supply chain costs, improve their operational efficiencies, 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 Labels who design and print high quality self-adhesive and resealable labels, principally for FMCG companies, and 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 39 sites, principally in the UK, as well as in Ireland, Sweden, and the Netherlands.
· Macfarlane Group supplies more than 20,000 customers in the UK, Europe, and the USA.
· In partnership with 1,700 suppliers, Macfarlane Group distributes and manufactures 600,000+ lines across a wide range of sectors, including: retail e-commerce; consumer goods; food; logistics; mail order; electronics; defence, automotive and aerospace.
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