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(Alliance News) - Macfarlane Group PLC on Thursday reported a "resilient" performance ahead of its previous expectations in 2020 despite challenging market conditions due to Covid-19.
The Glasgow-based packaging firm achieved a 2020 turnover of GBP230.0 million, an increase of 2% from GBP225.2 million in 2019.
Pretax profit in 2020 was GBP13.0 million, up from GBP11.9 million the year prior.
Macfarlane said these increases were driven by sales revenue from existing customers that benefited from underlying strength in the e-commerce, household essentials and medical sectors. Sales also benefited from the 2019 acquisitions of Ecopac and Leyland Packaging, as well as the acquisition of Armagrip in January 2020, it added.
Due to the improvement in its results, the group said it is proposing a final dividend of 1.85 pence per share, which amounts to a full year dividend of 2.55p per share. Its prior year dividend was 0.69p per share, dented by the cancellation of the proposed final dividend of 1.76p as one of its key Covid-19 cash conservation measures.
Shares in Macfarlane were up 10% at 93.93p in London on Thursday.
All government support and deferral programmes totalling GBP5.4 million were repaid during the year, Macfarlane said, with deferred considerations on the Ecopac and Leyland acquisitions in 2019 totalling GBP1.8 million paid too.
Looking ahead, the group said 2021 "started well", but it expects another challenging year.
"There are still significant uncertainties about the duration of disruption caused by lockdowns and the consequential impact on demand levels which means that 2021 will be another challenging year. However the board is confident that, given the resilience seen in 2020, the strength of our business model and the commitment of our people, Macfarlane Group will progress in 2021 and is well positioned to benefit when the UK economy begins to recover," said Macfarlane.
By Zoe Wickens; zoewickens@alliancenews.com
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