PROTECTIVE packaging specialist Macfarlane Group has announced it anticipates the group’s financial performance for 2024 will be ‘broadly in line’ with its full-year expectations.
The announcement was made in a trading update covering the period 1 January to 31 October 2024.
Revenue year to date is 4% below the same period last year, with ‘continued challenging market conditions’ resulting in weaker volumes and lower pricing impacting most sectors.
Macfarlane added that these impacts are being offset by improved new business performance, effective management of pricing and costs, and completion of two acquisitions during the period.
A ‘strong’ balance sheet and cash generation, supported by a £35 million bank facility, are said to underpin the group’s strategy. Net bank debt at 31 October 2024 was £4.7 million following £11.3 million of investment in acquisitions and payment of dividends of £5.8 million.
Macfarlane said the increase in employers’ National Insurance rates and National Minimum Wage announced in the UK budget will increase the group’s costs by c£1.5 million annually from April 2025. Mitigation actions are currently being reviewed to minimise the impact, the business said.
Aleen Gulvanessian, chair of Macfarlane Group, said, “As outlined in our interim results, the management team is responding effectively to the market headwinds. Our strong balance sheet gives us confidence we can continue to execute accretive acquisitions.
“There is good new business momentum as customers increasingly recognise the added value we can offer both on an environmental and cost savings basis. The group remains well-positioned to benefit when the macro-economic outlook improves.”
