ANNUAL GENERAL MEETING STATEMENT
Managing inflationary pressures; expectations for the full year unchanged
Macfarlane Group PLC (“Macfarlane”) will today hold its Annual General Meeting (“AGM”) at which the company will provide a Trading Update covering 2022 to date. Stuart Paterson, Chairman, will tell shareholders:
• Macfarlane has made a solid start to 2022, with first quarter sales and profits from continuing operations ahead of the same period in 2021.
• Packaging Distribution sales grew by 16%, with recovery of supplier driven price increases and the benefit of the acquisition of Carters Packaging (Cornwall) Limited in March 2021.
• Sales to industrial and hospitality sectors in 2022 have continued to recover, offset by weaker sales to e-commerce retail customers compared to the strong demand seen in the same period in 2021.
• Manufacturing Operations grew sales by 93%, reflecting the benefit from the acquisition of GWP Holdings Limited in February 2021 and a strong performance from Design and Manufacture, which mainly serves industrial markets.
• Net bank funds at the end Q1 2022 are broadly in line with the position at 31 December 2021 (£2.5m). This remains well within the Group’s bank facilities of £30m, committed until December 2025.
• We expect weaker sales in the e-commerce retail sector to continue for the remainder of the year, offset by recovery in the industrial and hospitality sectors and the benefit of new business wins. Macfarlane will continue to manage inflationary pressures in input prices and operating costs, mainly labour, energy and transport.
• Our expectations for the full year are unchanged.
Stuart Paterson will say: “We have consistently demonstrated our ability to address the challenges in the market and we are confident that the effectiveness of our strategy, the quality of our people and the resilience of our business model will ensure 2022 will be another year of growth for Macfarlane.”
Further enquiries: Macfarlane Group Tel: 0141 333 9666
Stuart Paterson Chairman
Peter Atkinson Chief Executive
Ivor Gray Finance Director
Spreng Thomson Tel: 0141 548 5191
Callum Spreng Mob: 07803 970103
Legal Entity Identifier (LEI): 213800LVRYDERSJAAZ73