Chairman’s Statement
Macfarlane Group’s Interim Results for the six months to 30 June 2018
| Financial Highlights £000 | 2018 | 2017 | Year on Year Change |
| Group turnover | £102,007 | £89,824 | +14% |
| Profit before tax | £3,526 | £2,535 | +39% |
| Interim dividend | 0.65p | 0.60p | +8% |
| Diluted earnings per share | 1.81p | 1.52p | +19% |
Stuart Paterson, Chairman of Macfarlane Group PLC, today said:
“Macfarlane Group has performed well in the first half of 2018. Group sales of £102.0m, were 14% ahead of the comparable period last year and profit before tax of £3.5m, was 39% higher than in 2017. This strong performance in the first six months of 2018, supplemented by the expected seasonal uplift from the e-commerce sector in the second half of the year, gives the Board confidence that its full year expectations for 2018 will be achieved.
“Packaging Distribution grew its sales by 14% in the first half of 2018, with 5% achieved from organic growth and the remainder from the 2017 acquisition of Greenwoods, which is performing well. Gross margin in Packaging Distribution rose to 29.3%, (2017: 29.0%). Operating profit for the division at £3.7m was £1.0m ahead of 2017, an increase of 39%.
Sales in our Manufacturing Operations were 11% above 2017, with strong demand for composite packs for export markets. Both manufacturing businesses experienced lower gross margins as a result of increased raw material prices and unfavourable sales mix, resulting in operating profit of £0.2m, slightly below that achieved in 2017.”
