REG - Macfarlane Group PLC - AGM trading update

MacfarlaneAnnouncement

07/05/2024 07:15

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RNS Number : 3366N  Macfarlane Group PLC  07 May 2024

 

7 May 2024

Macfarlane Group PLC

("Macfarlane" or the "Group")

AGM trading update

Full year expectations unchanged

Macfarlane Group PLC will today hold its Annual General Meeting at which Aleen
Gulvanessian, Chair, will provide a Trading Update covering 2024 to date.

·    As anticipated, the start of 2024 has been challenging with first
quarter sales and profits below the same period in 2023.

·    Despite the slow start to the year, our expectations for the full
year are unchanged.

·   Sales in the first quarter were 9.5% lower than the same period in
2023 with continued weak customer demand and price deflation with the profit
impact being partially offset by strong gross margins and the benefit of
acquisitions.

·   Macfarlane completed the acquisition in March 2024 of Allpack
Packaging Supplies Limited, a protective packaging distributor based in Bury
St Edmunds.

·   The Group expects an improved trading performance in the second half
of 2024 through the conversion of a strong new business pipeline combined with
some sales recovery from existing customers, good management of gross margins,
control of costs and further benefits from M&A activity.

·    Net bank funds at 31 March 2024 were £4.7m, an improvement on the
position at 31 December 2023 (£0.5m). The Group continues to operate well
within its bank facilities of £35m and related covenants, which are committed
until December 2025.

Aleen Gulvanessian will further comment:

"On presenting our 2023 results we indicated that the challenging market
conditions experienced in the latter part of 2023 would continue into 2024 and
this has been the case. We expect some improvement in trading conditions in
the second half of 2024 and we have a clear plan of management actions to
enable the Group to continue its progress."

 

 Further enquiries:  Macfarlane Group                                                           Tel: 0141 333 9666
                     Aleen Gulvanessian        Chair
                     Peter Atkinson                  Chief Executive
                     Ivor Gray                             Finance
                     Director

                     Spreng Thomson                                                             Tel: 0141 548 5191
                     Callum Spreng                                                              Mob: 07803 970103

Legal Entity Identifier (LEI):  213800LVRYDERSJAAZ73

Notes to Editors:

·   Macfarlane Group PLC has been listed on the Premium segment of the Main
Market of the London Stock Exchange (LSE: MACF) since 1973 with over 70 years'
experience in the UK packaging industry.

·   Through its two divisions, Macfarlane Group services a broad range of
business customers, supplying them with high quality protective packaging
products which help customers reduce supply chain costs, improve operational
efficiencies and sustainability and enhance their brand presentation. The
divisions are:

o Packaging Distribution - Macfarlane Packaging Distribution is the leading UK
distributor of a comprehensive range of protective packaging products; and

o Manufacturing Operations - Macfarlane Design and Manufacture is a UK market
leader in the design and production of protective packaging for high value and
fragile products.

·   Headquartered in Glasgow, Scotland, Macfarlane Group employs over 1,000
people at 40 sites, principally in the UK, as well as in Ireland, Germany and
the Netherlands.

·   Macfarlane Group supplies more than 20,000 customers, principally in
the UK and Europe.

·   In partnership with 1,700 suppliers, Macfarlane Group distributes and
manufactures 600,000+ lines supplying to a wide range of sectors, including:
retail e-commerce; consumer goods; food; logistics; mail order; electronics;
defence; medical; automotive; and aerospace.

 

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