Macfarlane Group (MACF) Trading Update summary

Trading performance and outlook

• Full-year performance expected to be broadly in line with expectations despite market headwinds.

• Year-to-date revenue is 4% lower than last year due to weaker volumes and lower pricing across most sectors.

• Improved new business, effective pricing and cost management, and two well-performing acquisitions are offsetting revenue declines.

• Strong balance sheet and cash generation supported by a £35m bank facility; net bank debt at £4.7m after acquisitions and dividends.

• Cost increases of approximately £1.5m annually expected from April 2025 due to UK government changes; mitigation actions under review.

Strategic initiatives and positioning

• Active acquisitions pipeline continues to progress, with recent acquisitions performing well.

• New business momentum is strong as customers value environmental and cost-saving benefits.

• The group is well-positioned to benefit from an improved macroeconomic outlook.

Company background and operations

• Macfarlane Group is a leading UK distributor and manufacturer of protective packaging, serving over 20,000 customers.

• Operates through Packaging Distribution and Manufacturing Operations divisions, with a presence in the UK, Ireland, Germany, and the Netherlands.

• Employs over 1,000 people at 40 sites and partners with 1,700 suppliers, distributing and manufacturing over 600,000 product lines.