Macfarlane Group, the Glasgow-based packaging, design and distribution firm, said its 2025 revenue increased 11% to £300.8 million but profit before tax fell 61% to £8 million.

The Glasgow firm said profits in its Packaging Distribution business “were significantly below 2024 as the business experienced weaker-than-expected demand, delays in new business decision making, pressure on gross margins from a more intense trading environment and increased labour and property-related costs.”

Shares of Macfarlane are down about 33% for the past year to around 71p, reducing the firm’s stock market value to roughly £112 million.

Macfarlane chair Aleen Gulvanessia said: “2025 was a difficult year for the group, however revenue increased 11% and profit, although below 2024, was in line with the revised market expectations.

“We were deeply saddened to report in October 2025 the loss of one of our colleagues in a tragic incident at the corrugate manufacturing facility of The Pitreavie Group Limited, acquired in early 2025. 

“Our thoughts remain with all those affected and we continue to provide support to ensure their wellbeing. The incident remains under investigation by the authorities.

“During the year we experienced economic headwinds and uncertainty creating a particularly competitive trading environment and material increases in operating costs which, together with the impact of the Pitreavie incident, resulted in a marked impact on the group’s financial performance.”