Packaging group posts strong results

The Macfarlane Group, the UK’s largest distributor of protective packaging, has warned of an uncertain economic climate after Brexit but stressed that it is performing well as a business.

The Glasgow-based firm delivered turnover and pre-tax profit rises in its interim results for 2016 in line with expectations.

Group sales were up 3.7% at £81.5 million and profit before was up 8.1% at £2m.

Chairman Graeme Bissett said sales and profit benefited from three recent company acquisitions, underlining the value of the group’s strategy.

Its increasing presence in the internet retail sector meant sales revenues would be weighted towards the second half.

The board remained confident of meeting its full year expectations.

The chairman said the group’s aim was to continue to deliver sustainable profit growth through added value products and services in key UK market sectors, combined with acquisitions.

“The uncertain economic climate arising from the outcome of the EU referendum is likely to continue for a considerable time and we will monitor developments and take appropriate action,” Mr Bissett added.

“The performance of the business in the period to June 30 reflects the successful implementation of our strategy and we will maintain that focus in the period ahead.”

Packaging distribution sales were 5.5% ahead, mainly from recent acquisitions.

Manufacturing operations sales were down 9% due to low price competition in the sector.

A share issue was oversubscribed and the board recommended a 3.8% increase in interim dividend to 0.55p per share.

Graeme Bissett said Macfarlane’s strategy was being successfully implemented.