Macfarlane Group (MACF) H1 2024 earnings summary

Executive summary

• Revenue declined 8% year-over-year to £129.6m amid continued weak demand and price deflation, but cost controls and new business growth supported resilient performance.

• Adjusted operating profit margin improved to 9.7% from 9.1% year-over-year, despite a 2% decrease in adjusted operating profit to £12.5m.

• Two acquisitions completed in H1 2024, with another post-period acquisition expected to be earnings enhancing in H2.

• Interim dividend increased to 0.96p per share, reflecting confidence in cash generation and balance sheet strength.

Financial highlights

• Group profit before tax fell 3% year-over-year to £9.7m; profit for the period was £7.2m, down 4%.

• Basic EPS was 4.55p (down from 4.74p); diluted EPS was 4.51p (down from 4.70p).

• Net cash inflow from operating activities was £14.0m, with net bank funds of £0.8m at period end.

• Pension scheme surplus increased to £10.2m, up from £9.9m at year-end 2023.

Outlook and guidance

• Performance for 2024 expected to be broadly in line with market expectations, supported by ongoing cost control, new business momentum, and recent acquisitions.

• Focus areas for H2 include accelerating new business, further acquisitions, cost synergies, and efficiency improvements.