Macfarlane Group PLC Interim Management Statement (7551P)
22 November 2016 - 6:00PM
UK Regulatory
TIDMMACF
RNS Number : 7551P
Macfarlane Group PLC
22 November 2016
Interim Management Statement
22 November 2016
Macfarlane Group PLC today provides an update on trading for the
period from 30 June 2016 to 31 October 2016.
The momentum achieved in the first half of 2016 has strengthened
in the second half of the year with improving organic growth and
the continuing benefit from acquisitions. Assuming that the Group
benefits from the normal uplift in the trading cycle in the final
quarter of 2016 through our focus on the e-commerce sector, the
Board is confident that its full year expectations will be met.
Sales for the year to date in Packaging Distribution have
increased by 8%. Our acquisitions continue to perform well and we
are particularly encouraged by our most recent acquisition, Nelsons
for Cartons & Packaging, completed in July 2016. Gross margin
is at similar levels to 2015 and the growth in overhead costs
against 2015 is mainly related to the impact of acquisitions.
Operating profit for the full year in Packaging Distribution is
expected to be well above that achieved in 2015.
Combined sales from the two businesses in our Manufacturing
Operations are showing improvement in the second half of the year.
Whilst sales for the year to date are 7% below 2015, this mainly
reflects the planned strategy in our Labels business in the first
half to exit low margin self-adhesive labels business to focus on
the higher added value re-sealable labels opportunities. Operating
profit for the full year in Manufacturing Operations is expected to
be similar to 2015 levels.
The net effect of these factors is that Macfarlane Group's
profit before tax for 2016 to date continues to be well above the
corresponding period in 2015 given the contribution from
acquisitions and this trend is expected to continue for the
remainder of 2016.
Bank borrowings of GBP15.9m at 30 June 2016 are expected to
reduce by the end of the year as a result of the Group's
traditionally strong working capital inflows in the final
quarter.
Graeme Bissett, Chairman of Macfarlane Group, said
"I am pleased to report that Macfarlane Group's performance in
the second half of 2016 is demonstrating further strong progress.
The Board remains confident that our full year expectations will be
met."
Further enquiries: Macfarlane Group Tel: 0141 333
9666
------------------- ------------------------------- ------------------
Graeme Bissett Chairman
------------------- ------------------------------- ------------------
Peter Atkinson Chief Executive
------------------- ------------------------------- ------------------
John Love Finance Director
------------------- ------------------------------- ------------------
Spreng Thomson Tel: 0141 548
5191
------------------- ------------------------------- ------------------
Callum Spreng Mob: 07803 970103
------------------- ------------------------------- ------------------
Notes to Editors:
-- Macfarlane has more than 60 years' experience in the UK
packaging industry and is listed on the London Stock Exchange (LSE
Premium Listing Ticker: MACF) in the Industrials Sector
-- Macfarlane has three businesses:
o Macfarlane Packaging is the leading UK Packaging distributor
of a comprehensive range of protective packaging products
o Macfarlane Labels designs and prints high quality
self-adhesive and re-sealable labels, principally for FMCG
companies
o Macfarlane Packaging Design & Manufacture designs and
produces protective packaging for high value, fragile products
-- Macfarlane is headquartered in Glasgow, Scotland, and employs
over 780 people at 29 sites, principally in the UK &
Ireland
-- The company has 20,000+ customers in the UK, Europe and USA,
providing 600,000+ lines to a wide range of industry sectors
including consumer goods; logistics; internet retail; food
manufacturing; electronics; defence and aerospace
This information is provided by RNS
The company news service from the London Stock Exchange
END
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