Macfarlane Group (MACF) H2 2024 earnings summary

Executive summary

• Revenue declined 4% to £270.4m year-over-year, but profit before tax rose 3% to £20.9m, reflecting resilient performance amid challenging market conditions and effective cost control.

• Adjusted operating profit margin improved to 10.1% (2023: 9.8%), and diluted EPS increased 4% to 9.74p.

• Two strategic acquisitions (Allpack Direct and Polyformes) contributed to results, and a new £40m banking facility was secured to support future growth.

• The pension scheme remains in surplus, and no further contributions are required.

Financial highlights

• Group revenue: £270.4m (down 4% year-over-year).

• Profit before tax: £20.9m (up 3% year-over-year).

• Adjusted operating profit: £27.4m (down 1% year-over-year).

• Gross margin: 39.0% (2023: 37.6%).

• Net cash inflow from operations: £25.4m (2023: £33.5m).

• Net bank debt: £1.9m at year-end.

• Dividend per share: 3.66p (up 2% year-over-year).

Outlook and guidance

• 2025 expected to remain challenging due to increased employment costs and new UK regulatory fees (EPR), but actions are underway to mitigate these impacts.

• Acquisition of Pitreavie in early 2025 expected to be earnings-enhancing and to strengthen both distribution and manufacturing segments.

• Strong new business pipeline and continued focus on organic and acquisitive growth.