Macfarlane Group publishes its 2026 Interim Results

INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2026

Full year outlook remains in line with market expectations

Profit recovery programme progressing

New £6m share buyback programme commencing in October 2026

• See note 2 for reconciliation of Alternative Performance Measures to Statutory Measures.

Key Financial Highlights

• Group revenue increased by 2% to £148.9m (H1 2025: £146.6m) with operating profit of £7.1m (H1 2025: £7.0m).
• Group adjusted operating profit reduced by 3% to £9.5m (H1 2025: £9.8m) impacted by the performance of the Pitreavie business.
• Group adjusted operating profit as a percentage of revenue decreased to 6.4% (H1 2025: 6.7%).
• Basic and diluted earnings per share were 2.22p per share (H1 2025: 2.32p per share).
• Packaging Distribution increased revenues to £111.7m (H1 2025: £110.4m) with adjusted operating profit of £5.1m (H1 2025: £4.8m).
• Manufacturing Operations grew revenues to £40.6m (H1 2025: £39.2m) with adjusted operating profit of £4.4m (H1 2025: £5.0m).
• Decrease in net cash inflow from operating activities to £10.3m (H1 2025: £12.4m) after investment in inventory to provide contingency against the impact of events in the Middle East.
• Net bank debt of £17.9m on 30 June 2026 (31 December 2025: £16.2m).
• The Group is operating well within its bank facility of £40m which runs until November 2028 with an option to extend to November 2029.
• Following completion of the buy-in transaction on 29 June 2026 the surplus on the pension scheme was £5.3m on 30 June 2026 (31 December 2025: £6.0m) with the Group and trustees targeting a buy-out of the scheme within two years.

Capital Allocation

The interim dividend has been maintained at 0.96p per share (H1 2025: 0.96p per share) – to be paid on 8 October 2026 to shareholders on the register as at 11 September 2026 (ex-dividend date 10 September 2026).

At 30 June 2026 the Group had spent £3.1m of the £4m allocated to the share buyback programme launched in June 2025, buying back 3.8m shares, with the remaining £0.9m expected to be deployed by the end of September 2026.

The Group will allocate an additional £6m to share buybacks to commence in October 2026.  At current market valuations and given management focus on the profit recovery programme, the Board believes this is an efficient use of capital. The Group intends to return to executing high-quality acquisitions as business performance improves.

2026 Trading Outlook

Trading is in line with market expectations for the full year to 31 December 2026.  Performance in H2 2026 will benefit from momentum in new business growth, control of operating expenses and build on the return to profitability at the Pitreavie business, while continuing to effectively manage the impact of events in the Middle East.

Aleen Gulvanessian, Chair of Macfarlane Group PLC, commented:

“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 £6m 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.”

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