Macfarlane Group’s Interim Results

Ewan McInnes blog

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.”

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