Macfarlane Group PLC achieved another year of significant growth in 2018 with sales of £217.3m, (2017: £196.0m) 11% ahead of 2017 and profit before tax and exceptional items of £11.2m (2017: £9.3m), 20% ahead of 2017. The trading performance continued the positive trends of recent years and was in line with market expectations.ET
Packaging Distribution increased sales by 11% to £189.8m (2017: £171.8m) with 4% achieved from organic growth and 7% from acquisitions, both the new acquisitions in 2018 and the full year benefit from those completed in 2017, all of which continue to perform well. Gross margin in Packaging Distribution rose to 29.5%, (2017: 29.4%) reflecting the effective management of input price increases in the second quarter as well as a full year contribution from the Greenwoods’ business acquired in 2017. The acquisitions of Tyler Packaging (Leicester) Limited (“Tyler”) and Harrisons Packaging Limited (“Harrisons”) were both concluded in the second half of 2018 and have contributed as expected since acquisition.
The growth in sales and gross margin, combined with good cost control, resulted in Packaging Distribution achieving a 19% increase in operating profit before exceptional items to £11.2m (2017: £9.4m).
Sales in the Manufacturing Operations at £27.5m (2017: £24.2m) grew by 14%
After charging interest of £0.8m (2017: £0.8m), Group profit before tax and exceptional items totalled £11.2m, an increase of 20% on 2017. Basic and diluted earnings per share for 2018 before exceptional items were 5.72p (2017: 5.22p).t
Commenting on the 2018 results, Stuart Paterson, Chairman, said:
“The increase in profits in 2018 represents the ninth consecutive year of profit growth for Macfarlane Group. 2019 has started well and our profitability in the year to date is ahead of the same period in 2018.
“Our strategy continues to focus on the delivery of sustainable profit growth by concentrating on added value products and services in our target market sectors, combined with efficiency improvements and the identification and completion of value-enhancing acquisitions. This strategy, which is continuously refined, has served all stakeholders well in recent years and we remain confident that it will continue to do so. Macfarlane Group’s performance in 2018 reflects the successful implementation of this strategy and despite the ongoing uncertainties surrounding Brexit and the difficulties being experienced in the retail sector, we are confident that the Group will demonstrate further progress in 2019.”
