AHEAD of the firm’s Glasgow AGM, protective packaging specialist Macfarlane Group has issued a trading update in which it confirms that its full-year expectations for 2026 are unchanged.
The business said trading is in line with market expectations for the full year to 31 December 2026. Group revenue in the first quarter of the year was marginally ahead of the same period in 2025 with organic growth achieved by both distribution and manufacturing operations.
Revenue at Pitreavie was impacted by the restriction in production capacity, with the £1.2 million investment in replacement equipment becoming fully operational in Q2.
Macfarlane added that group profit in Q1 was in line with expectations but, as anticipated, below the same period in 2025 due to the temporary outsourcing of manufacturing at Pitreavie and restructuring actions taken in distribution. The group’s performance is expected to improve in the second half of the year.
Macfarlane also revealed that management is taking actions to mitigate the inflationary impact on input prices and logistics costs caused by events in the Middle East.
Net bank debt at 31 March 2026 was £16.7 million compared to £16.2 million at the end of 2025. The group continues to operate within its £40 million bank facilities and related covenants, which are committed until November 2028.
Chair Aleen Gulvanessian will comment, “Following a difficult year in 2025, our main focus for 2026 has been to commence the process of profit recovery. It is encouraging therefore that the group’s performance in the first quarter of 2026 has been in line with expectations. We welcome the early signs of organic revenue growth in our distribution business, the resilience in our manufacturing businesses and the investment in Pitreavie which will enable that business to restore profitability in 2026.
“The impact of events in the Middle East will present market challenges not anticipated at the start of the year. However, the management team is taking appropriate actions to address these challenges and achieve progress in 2026.”
