Macfarlane Group Interim Results show turnover increase of 5.4% to £107.54m

Scottish packaging firm, Macfarlane Group PLC has revealed Interim Results for the first half of 2019.

Pre-tax profits have growth 8.7% to £3.832m from £3.526m on turnover which increased 5.4% from £102.01m to £107.54m.

Stuart Paterson, Chairman of Macfarlane Group PLC said: –

“Packaging Distribution grew sales by 4.4% in the first half of 2019.  Sales revenue from existing customers was impacted by weaker demand and sales price deflation but this was offset by good new business growth and the benefit of the 2018 acquisitions of Tyler Packaging (Leicester) Limited (“Tyler”) and Harrisons Packaging Limited, (“Harrisons”) as well as the recent acquisition of Ecopac (U.K.) Limited, (“Ecopac”) concluded at the start of May 2019.  First half operating profit in Packaging Distribution at £4.5m was ahead of the equivalent period in 2018.

“Sales in our Manufacturing Operations were 16.0% above 2018, with strong demand for resealable labels mainly through new customer wins.  First half operating profit in our Manufacturing Operations at £0.4m, was above that achieved in 2018.

“The Board is recommending a 6.2% increase in the interim dividend to 0.69p per share to be paid on 10 October 2019 to shareholders on the register as at 20 September 2019 (2018: 0.65p per share).

“Our strategy is to deliver sustainable profit growth by focusing on added value products and services in our target market sectors, combined with the execution of value-enhancing acquisitions.  Macfarlane Group’s performance in the first half of 2019 reflects the successful implementation of this strategy and we are confident that the Group will continue to make further progress in the remainder of 2019.”

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