Macfarlane Group PLC has released its interim results for the first half of 2025, reporting a 13% increase in group revenue to £146.6m against H1 2024, confirming the full-year outlook remains in line with market expectations.
However, statutory profits were impacted by challenging market conditions, with operating profit down by 34% to £7.0m and profit before tax halved to £5.0m.
Divisional Performance: Mixed Outcomes
Distribution revenues remained resilient at £110.4m compared to £110.9m last year, though adjusted operating profit fell to £4.8m, reflecting delayed new business decisions and margin pressures.
In contrast, Manufacturing Operations delivered robust growth, lifting revenues by 84% to £39.2m and increasing adjusted operating profit to £5.0m, driven by acquisitions and higher demand from defence and aerospace customers.
Key Financial Metrics
- Adjusted operating profit: £9.8m (down 22%)
- Adjusted diluted earnings per share: 3.78p (down 30%)
- Net bank debt: £15.2m as at 30 June 2025
- Interim dividend: Maintained at 0.96p per share, payable 9 October 2025; ex-dividend date 11 September 2025
- Pension scheme surplus: £9.2m, with no further contributions required
Operational Stability and Outlook
The Group continues to operate well within its £40m bank facility, which extends to November 2027 with options to 2029. Net cash inflow from operating activities was £12.4m, reflecting ongoing working capital management.
Looking ahead to H2 2025, the Board expects performance improvement through seasonal trading uplift, realisation of synergies from the Pitreavie acquisition, and management actions on input and operating costs. The recently launched share buyback programme will proceed as planned.
Chair Aleen Gulvanessian, said: “Whilst Distribution has experienced weaker than expected demand, delays in new business decision-making and pressure on profit margins, Manufacturing Operations has performed more robustly.
“Manufacturing Operations’ performance was driven by good contributions from the acquisitions of Polyformes Limited in July 2024 (“Polyformes”) and The Pitreavie Group Limited in January 2025 (“Pitreavie”) combined with stronger demand from customers, particularly in the defence and aerospace sectors.
“The recently launched share buyback programme will continue as planned.
“Despite the current market conditions, the Board remains confident that our strengthened sales team, differentiated customer proposition and proven executional skills mean the medium-term prospects for the Group are positive.”
Listed since 1973, the Glasgow-headquartered Macfarlane Group employs over 1,000 people across 43 sites. It is the UK’s market leader in protective packaging, serving more than 20,000 customers in the UK and Europe, and partners with 1,700 suppliers to distribute and manufacture over 600,000 product lines.
