Macfarlane Group, the Glasgow-based packaging, design and distribution firm, said on Thursday that its sales from continuing operation rose 26% to £264.5 million in the year to December 31, 2021, with profit before tax soaring 50% to £18.6 million.

The Glasgow firm also revealed that chairman Stuart Paterson will step down this year once a new chair has been identified.

Macfarlane is proposing a final dividend of 2.33p, which would take the total dividend for 2021 to 3.20p per share, up 25% on 2020.

Macfarlane’s share price has risen more than 40% over the past 12 months to give it a current stock market value of about £200 million.

Paterson said: “In 2022 I will enter my 10th year of service on the Macfarlane Group board and as such cease to be seen as independent under the corporate governance code.

“I have therefore given the board notice of my intention to stand down this year once a new chair has been identified and a smooth transition ensured.

“Plans for my succession are well advanced.”

In its outlook, Macfarlane said: “We anticipate that 2022 will see ongoing inflationary pressure on input prices, continuing supply constraints on most raw materials and operating costs increasing due to staffing pressures.

“However, despite these challenges, trading in the early months has been encouraging and the board is confident that, given the effectiveness of our strategy, the resilience of our business model and the experience and commitment of our people, Macfarlane Group will continue to deliver further growth in 2022.”