Macfarlane posts higher interim profit but expects demand to slow

(Alliance News) - Macfarlane Group PLC on Thursday declared a higher dividend on a higher interim profit but cautioned about a challenging environment regarding its outlook.

Pretax profit in the six months to June 30 grew 3% to GBP8.9 million from GBP8.6 million a year prior. Revenue climbed 14% to GBP139.2 million from GBP122.1 million, which however was partly offset by widening costs.

Administrative expenses increased 13% to GBP32.3 million from GBP28.6 million.

The Glasgow-based packaging and label company declared an interim dividend of 0.90 pence per share, up 3% from 0.87p.

While expectations for 2022 remained unchanged, Macfarlane cautioned that it continues to experience a challenging environment on slower demand from e-commerce customers and due to rising operating costs caused by inflation.

Macfarlane shares were 2.2% lower at 111.50 pence each in London on Thursday morning.

By Tom Budszus; tombudszus@alliancenews.com

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Macfarlane Grp.