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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 91.40p
Change Today -2.80p
52 Week High 109.00p
52 Week Low 71.50p
Volume 249,283
Shares Issued 157.55m
Market Cap 144.00m


  Latest Previous
  Final Interim
Ex-Div 16-May-19 20-Sep-18
Paid 06-Jun-19 11-Oct-18
Amount 1.65p 0.65p