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Macfarlane Group (MACF)

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Macfarlane profit jumps on demand at distribution business

23 Aug 18

LONDON (ShareCast) - (Sharecast News) - Macfarlane Group's first-half profit jumped 39% as strong growth at the company's packaging distribution business offset lower manufacturing profit.

Pre-tax profit for the six months to the end of June rose to 3.5m from 2.4m as group revenue rose 14% to 102m. The interim dividend increased 8% to 0.65p a share.

Packaging distribution sales rose 14% with almost two-thirds of the growth from the acquisition of Greenwoods in 2017. Operating profit at that business rose by 1m to 3.7m.

Manufacturing sales rose 11% but margins were squeezed by higher raw materials costs and a poor sales mix, causing operating profit to fall to 201,000 from 278,000.

The company, which sells boxes, tape, bubble wrap and other packaging products, said it would get a boost from sales to online retailers as Christmas approaches.

Stuart Paterson, Macfarlane's chairman, said: "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."

Macfarlane shares rose 3% to 105p at 10:34 BST.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.


Market Data

Currency UK Pounds
Price 103.00p
Change Today 6.10p
52 Week High 109.00p
52 Week Low 71.50p
Volume 180,160
Shares Issued 157.81m
Market Cap 162.55m


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Ex-Div 19-Sep-19 16-May-19
Paid 10-Oct-19 06-Jun-19
Amount 0.69p 1.65p