PROTECTIVE packaging supplier Macfarlane Group has released its interim results for the first half of 2025, which show a 13% rise in turnover and a 22% drop in adjusted operating profit.
The business revealed its full-year outlook is ‘in line with market expectations’.
Group revenue increased to £146.6 million, compared with £129.6 million for the first half of 2024. Group adjusted operating profit fell from £12.5 million to £9.8 million compared with the same period 12 months earlier.
Distribution generated revenues of £110.4 million, with adjusted operating profit of £4.8 million. Manufacturing operations increased revenues significantly from £21.3 million to £39.2 million, with adjusted operating profit rising from £3.2 million to £5 million.
Net cash inflow from operating activities decreased from £14.1 million to £12.4 million, which was said to reflect continued management of working capital. Net bank debt was £15.2 million on 30 June 2025, following a net cash outflow of £13.3 million since 31 December 2024, after £16.5 million was attributed to acquisitions and capital expenditure.
Macfarlane anticipates performance to improve in the second half of the year through seasonal trading uplift and actions the management team is taking to manage input cost changes, mitigate operating cost increases, convert a pipeline of new business, and deliver synergies from the Pitreavie acquisition.
Aleen Gulvanessian, chair of Macfarlane Group PLC, said, “As noted in the trading update on 10 July, market conditions have been challenging in H1 2025 due to economic headwinds and uncertainty. Whilst distribution has experienced weaker than expected demand, delays in new business decision-making and pressure on profit margins, manufacturing operations has performed more robustly.
“Manufacturing operations’ performance was driven by good contributions from the acquisitions of Polyformes Limited in July 2024 and The Pitreavie Group Limited in January 2025 combined with stronger demand from customers, particularly in the defence and aerospace sectors.
“The recently launched share buyback programme will continue as planned. Despite the current market conditions, the board remains confident that our strengthened sales team, differentiated customer proposition and proven executional skills mean the medium-term prospects for the group are positive.”
