LONDON (Alliance News) - Macfarlane Group PLC Chairman Graeme Bissett Tuesday said the positive sales trends have continued from the end of 2014 into 2015 and said its acquisitions are performing well, which has helped push up sales and improve profitability.
Speaking ahead of the packaging and label company's annual general meeting due to be held on Tuesday, Bissett said group sales in the first four months of 2015 are 13% ahead of the same period a year ago, adding that profitability is "stronger" as well.
Sales in packaging distribution are up 16% so far in 2015 from a year earlier, of which 6% is related to organic growth and the remainder is from the impact of acquisitions the company made in 2014. Bissett added that gross margins have improved.
Manufacturing operations are "running at similar levels to 2014" and showing improved profitability and Bissett said whilst the competitive UK retail sector continues to impact the company's label business, its packaging design and manufacture business has won new customers.
Macfarlane's net debt has risen since the end of 2014, but Bissett said this reflects "the normal seasonal uplift in working capital". He added the group is operating "well within" its existing bank facilities.
"Our full year results will again be heavily influenced by performance in the second half of the year due to our increasing presence in the internet retail sector. Given the strong start to the year, the board is confident that the group will perform in line with its expectations for 2015," said Bissett.
At the annual general meeting to be held Tuesday, Macfarlane has proposed a final dividend of 1.15 pence per share, subject to approval.
Macfarlane shares were up 2.3% to 44.50 pence per share on Tuesday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Macfarlane Grp. (MACF)