Macfarlane Group expects to exceed previous full-year guidance
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Macfarlane Group expects to exceed previous full-year guidance

25 Nov 2021 (Last Updated November 25th, 2021 15:44)

The company expects the rest of the year to be 'challenging' due to issues such as price inflation and supply chain constraints.

Macfarlane Group expects to exceed previous full-year guidance
Macfarlane Group supplies to more than 20,000 customers in the UK, Europe and the US. Credit: Richard Says / Flickr.

UK-based packaging and label company Macfarlane Group has reported that its sales revenue has grown by 25% for the trading period to 31 October, compared with the same period of last year.

The company said its performance had been ‘robust’ since the first half, despite ongoing ‘challenging’ market conditions.

Its profit before tax was also greater than in the prior-year period.

As of 31 October, Macfarlane Group’s net bank debt had fallen to £2.0m from £8.7m at the end of June.

The group now expects to exceed its previous earnings forecast for this year.

Macfarlane Group chairman Stuart Paterson said: “The Macfarlane Group performance has been robust in demanding market conditions and is testament to the strength of our business model and the diligence of our people.

“At the interim results, we indicated that we expected headwinds in the second half of 2021, so it is particularly pleasing to be once again raising our expectations for the full year.”

In March, Macfarlane Group bought GWP Holdings, the owner of protective packaging manufacturer and distributor GWP Group, for £15.1m.

The following month, it acquired full ownership of protective packaging distributor Carters Packaging for a £4.5m cash consideration.

In its trading update, Macfarlane said that the two acquired businesses were ‘performing well’.

The company also noted that it expects the rest of the year to be challenging due to factors such as input price inflation, higher operating costs because of a shortfall in staffing, and the impact of supply chain disruptions on raw material delivery and packaging demand.

Macfarlane Group said that its management team ‘remains focused on effectively managing these challenges’.

In March, the company replaced its existing blown hand-applied stretch wrap with film made from 30% recycled material.

The film is being used for the company’s Heavy, Super Heavy and Extra Heavy blown film stock lines.