Macfarlane says H2 revenue, profit ahead of last year

Glasgow-based packaging firm Macfarlane Group on Thursday published an update on its trading for the period from June 30 to October 31, 2020.

“The board is pleased to announce that the group sales revenue and profit before tax for the 2nd half of the year to date is ahead of the corresponding period in 2019,” said Macfarlane.

“These trends give us confidence that the full year results for 2020 will be broadly in line with the 2019 profit before tax.”

Macfarlane also said John Love has chosen to retire as group finance director on December 31, 2020, and he will be succeeded by Ivor Gray, who has worked at Macfarlane for 24 years in a variety of financial and commercial roles.

In its trading update, Macfarlane added: “Sales revenue in the 4 months to 31 October 2020 was better than expected and has grown by 4% compared to the same period last year.

“This represents a strong recovery from Q2 when sales decreased by 5.2% due to the impact of the Covid-19 lockdown.  

“We have continued to achieve good sales growth in the internet retail, household essentials and medical sectors and seen improving sales in some industrial sectors. 

“However sales in the aerospace, high street retail and food service sectors will take some time to recover to pre-Covid-19 levels.

“The performance of the business in challenging market conditions clearly demonstrates the benefits of having a broad customer base across a variety of market sectors.”

Macfarlane employs over 900 people at 31 sites in the UK, Ireland and Sweden. It has a stock market value of about £150 million.

Macfarlane chairman Stuart Paterson said: “The Macfarlane Group performance in the second half of 2020 has been robust in the face of significant challenges.   

“This has only been achieved due to the outstanding commitment and hard work of our people. 

“We have focused on ensuring they can service our customers effectively by creating safe environments in which they can work.

“The health and wellbeing of our employees continues to be paramount.  

“There remain uncertainties and concerns over future economic conditions.

“However, with our diversified customer base, strong added value sales proposition and highly capable and committed team Macfarlane Group has demonstrated it is well positioned to manage the challenges facing the business in the remainder of 2020 and beyond.”