MACFARLANE Group has released its interim results for the first half of 2026, which reveal a 2% rise in revenue to £148.9 million and a slight increase in operating profit from £7 million to £7.1 million compared with the same period in 2025.
The business said the full-year trading outlook remains in line with market expectations, with the group tipped to benefit from momentum in new business growth in the second half of the year.
Group adjusted operating profit for the six months reduced by 3% to £9.5 million, which Macfarlane said was impacted by the performance of the Pitreavie business. Group adjusted operating profit as a percentage of revenue decreased from 6.7% to 6.4%.
Packaging distribution increased revenues from £110.4 million to £111.7 million, with adjusted operating profit slightly up at £5.1 million.
Manufacturing operations grew revenues from £39.2 million to £40.6 million for the same period, with adjusted operating profit down from £5 million to £4.4 million.
Macfarlane reported a decrease in net cash inflow from operating activities from £12.4 million to £10.3 million, following investment in inventory to provide contingency against the impact of events in the Middle East. Net bank debt at June 20 was £17.9 million.
Aleen Gulvanessian, chair of Macfarlane Group PLC, said, “As we said at our AGM, following a difficult year in 2025, our main focus for 2026 was to start the process of profit recovery. I am pleased to report that the group has made progress in the first half of 2026, returning the packaging distribution business to organic profit growth, continuing to generate attractive returns from manufacturing operations and restoring the Pitreavie business to profitability in the second quarter.
“This performance gives us confidence to maintain the interim dividend and allocate a further £6 million to a new share buyback programme. We have also taken decisive action to mitigate the cost impacts arising from events in the Middle East and successfully completed the pension scheme buy-in, strengthening security for members while further reducing the group’s financial risk. Management is focused for the remainder of 2026 on continuing the execution of these actions.”
