Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Packaging group presents strong performance

Graeme Bissett of the Macfarlane Group.
Graeme Bissett of the Macfarlane Group.

The Macfarlane Group, the UK’s largest distributor of protective packaging, has warned of an uncertain economic climate after Brexit but stressed that it is performing well as a business.

The Glasgow-based firm delivered turnover and pre-tax profit rises in its interim results for 2016 in line with expectations.

Group sales were up 3.7% at £81.5 million and profit before was up 8.1% at £2m.

Chairman Graeme Bissett said sales and profit benefited from recent acquisitions, underlining the value of the group’s strategy.

Macfarlane bought Colton Packaging Teesside and the packaging business of Edward McNeil Limited of Glasgow in the first half of 2016.

Last month it completed the purchase of Nelsons for Cartons & Packaging of Leicester.

Its increasing presence in the internet retail sector meant sales revenues would be weighted towards the second half.

The board remained confident of meeting its full year expectations.

The chairman said the group’s aim was to continue to deliver sustainable profit growth through focusing on added value products and services in key UK market sectors, combined with value enhancing acquisitions.

“The uncertain economic climate arising from the outcome of the EU Referendum is likely to continue for a considerable time and we will monitor developments and take appropriate action,” Mr Bissett added.

“The performance of the business in the period to June 30 reflects the successful implementation of our strategy and we will maintain that focus in the period ahead.”

Packaging distribution sales were 5.5% ahead mainly from recent acquisitions.

Manufacturing operations sales were down 9% due to the group not entering low price competition in the labels sector.

Net debt was up £5m at 16.9m, reflecting outgoings of £6.4m for acquisitions.

Macfarlane’s move to raise £5.6m from a share issue when it bought Nelsons was oversubscribed.

The board recommended an increase of 3.8% in the interim dividend to 0.55p per share.

Already a subscriber? Sign in

[[title]]

[[text]]