Shares of Macfarlane Group, the Glasgow-based packaging, design and distribution firm, fell as much as 20% on Wednesday after the firm revealed news of a “tragic incident” at its Pitreavie plant and a “slower improvements in trading in Distribution.”
Macfarlane said both factors will “are the key contributors to a reduction in the group’s estimated full year (FY) 2025 adjusted operating profit, now expected to be 20% to 25% below market expectations.”
Macfarlane shares are now down about 36% year to date, reducing the firm’s stock market value to about £114 million.
Macfarlane employs 1,000 people at 43 sites, principally in the UK, as well as in Ireland, Germany and the Netherlands.
“The Pitreavie FY 2025 performance will be materially below previous management expectations,” said Macfarlane.
“This is as a consequence of the recent fatal incident at one of the Pitreavie sites, which has resulted in a temporary suspension of operations at that facility.
“Any additional impact of the Pitreavie incident will only become clear when the authorities have completed their investigation.”
Macfarlane said the H2 2025 improvement in Distribution sales and gross margin “has been slower than expected, with market conditions still challenging.”
It said Manufacturing Operations, excluding Pitreavie, continues to perform robustly.
“The focus for the remainder of 2025 is on stabilising the Pitreavie business and continuing to implement performance improvement actions in the Distribution business,” said the firm.
“Net bank debt remains well within the group’s £40m facility.”
Macfarlane chair Aleen Gulvanessian said: “Following the tragic incident at Pitreavie our thoughts are with all those who have been impacted.
“Since then, steps have been taken and will continue to be taken to provide such support and activities as are needed to ensure the wellbeing of our colleagues.
“The incident has naturally had a significant impact on the Macfarlane business.
“The Board supports the management team in its focus on stabilising the Pitreavie business and implementing actions to improve the performance of the Distribution business.”