PROTECTIVE packaging specialist Macfarlane Group has reported an 11% rise in revenue to £300.8 million in its preliminary financial results for 2025.
Operating profit is down 47% to £12.5 million, while group adjusted operating profit reduced by 28% to £19.7 million.
Packaging distribution generated revenues of £229.2 million – a slight rise on the previous year’s £228.8 million – with adjusted operating profit dropping from £20.2 million to £11.4 million.
Manufacturing operations generated revenues of £78.5 million – a significant increase on the £47.5 million reported 12 months earlier – with adjusted operating profit rising to £8.3 million (2024: £7.2 million).
Net cash inflow from operating activities was £24.8 million (2024: £25.4 million), which the group said reflects continued effective management of working capital.
Net bank debt was £16.2 million on 31 December 2025, following a net cash outflow of £14.2 million in the year, after £25.3 million was attributable to acquisitions, the share buyback, dividends, and net capital expenditure.
Chair Aleen Gulvanessian said, “2025 was a difficult year for the group, however revenue increased 11% and profit, although below 2024, was in line with the revised market expectations.
“We were deeply saddened to report in October 2025 the loss of one of our colleagues in a tragic incident at the corrugate manufacturing facility of The Pitreavie Group Limited, acquired in early 2025. Our thoughts remain with all those affected and we continue to provide support to ensure their wellbeing. The incident remains under investigation by the authorities.
“During the year we experienced economic headwinds and uncertainty creating a particularly competitive trading environment and material increases in operating costs which, together with the impact of the Pitreavie incident, resulted in a marked impact on the group’s financial performance.”
Macfarlane is reporting progress in its sustainability journey, having achieved a reduction in both Scope 1 and 2 carbon emissions. The group revealed it is committed to reducing its impact on the environment through electrification of the delivery fleet and expanding the use of renewable energy through the installation of solar panels at more operating locations.
In terms of outlook, Macfarlane is anticipating markets and the competitive environment to remain ‘challenging’ in 2026, with management focused on actions to improve the performance of packaging distribution, to recover the Pitreavie business, and continue the development of specialist manufacturing operations.
