MACFARLANE Group has reported an 8.1% rise in profit before tax to just over £2 million for the six months ended June 2016.
Group turnover at the Glasgow-based firm increased by 3.7% to £81.5 million over the same period.
Macfarlane said the performance is “consistent” with the Board’s expectations in May’s AGM statement and that sales and profits were both both boosted by the impact of recent acquisitions.
The Group acquired Colton Packaging Teesside and the packaging business of Glasgow-based Edward McNeil Limited in the first half of this year, followed by Nelsons for Cartons & Packaging Limited in July.
Graeme Bissett, chairman of Macfarlane Group PLC said, “Our increasing presence in the internet retail sector means that sales revenues are more weighted towards H2 and we expect to see the typical seasonal uplift in the second six months of the year. The Board remains confident that its full year expectations for 2016 will be met.
“Packaging distribution sales were 5.5% ahead of the equivalent period in 2015, with 0.5% achieved from organic growth and the remainder from recent acquisitions all of which are performing well. Our gross margin in packaging distribution was 29.2%, similar to last year. Operating profit at £2.3m is £0.2m (9.7%) ahead of the equivalent period in 2015.
“Sales in our manufacturing operations are 9.0% below 2015 levels principally due to our decision not to follow low price competition in the labels sector. Operating profit in our manufacturing operations is £0.2m, similar to the 2015 level.
“Our strategy is to continue to deliver sustainable profit growth through focusing on added value products and services in our key UK market sectors, combined with the execution of value enhancing acquisitions. The uncertain economic climate arising from the outcome of the EU Referendum is likely to continue for a considerable time and we will monitor developments and take appropriate action. The performance of the business in the period to 30 June 2016 reflects the successful implementation of our strategy and we will maintain that focus in the period ahead.”
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