PROTECTIVE packaging specialist Macfarlane Group has released its preliminary results for 2024, which detail pre-tax profit has increased by 3% on revenues that have fallen by 4%.
Revenue has dipped from £280.7 million in 2023 to £270.4 million. However, pre-tax profits are up from £20.3 million to £20.9 million.
Group adjusted operating profit as a percentage of revenue has improved from 9.8% to 10.1%.
The business reported that packaging distribution revenue decreased by 7%, adding that ‘continued weak customer demand and selling price deflation’ have been partially offset by a ‘strong’ new-business performance and the benefit of the acquisitions of Gottlieb and Allpack Direct.
Manufacturing operations achieved revenue growth of 16% to £41.7 million, reflecting contributions from B&D Group, Suttons and Polyformes; and ‘marginally lower’ organic sales due to selling price deflation.
The chair’s statement highlighted the ‘challenging’Â markets in which Macfarlane Group operates, adding that the management team has responded ‘effectively’, enabling the business to produce a profit performance for the year ‘in line with market consensus’.
On the sustainability front, the group reported a reduction in Scope 1 and 2 carbon emissions and completed the mapping of its Scope 3 emissions.
The board is proposing a final dividend of 2.70 pence per share, amounting to a full-year dividend of 3.66 pence per share (2023: 3.59 pence per share).
In terms of outlook, Macfarlane said the businesses is ‘well positioned’ to continue profitable growth in 2025 but expects another challenging year within the markets in which it operates, particularly with increased employment costs resulting from UK budget measures and the introduction of Extended Producer Responsibility fees.
Macfarlane added that the recently-announced purchase of The Pitreavie Group demonstrates its ‘continued ability to identify and execute high-quality acquisitions and we have a strong pipeline of opportunities’.
