(Alliance News) - Macfarlane Group PLC said Wednesday its sales revenue growth has been held back by weaker demand and price deflation in the UK.
The packaging firm said for the period from June 30 to October 31, sales revenue grew 4%. Meanwhile profit before tax is ahead of the corresponding period in 2018.
Sales revenue has continued to be affected by weaker demand and price deflation, the company said. "This is being offset by management action to improve gross margins and reduce overhead costs," the company added.
Macfarlane also said that the two acquisitions made in 2019 are both performing well.
In September Macfarlane acquired Leyland Packaging Co Ltd for up to GBP3.3 million in a cash and share deal. Meanwhile, back in May, the company bought Ecopac (UK) Ltd for up to GBP3.9 million in cash.
Chair Stuart Paterson said: "I am pleased to report that Macfarlane group's performance in the second half of 2019 has remained robust in the face of weaker demand conditions."
"On the assumption that the group benefits from the normal seasonal uplift in activity in the remainder of 2019, the board is confident that results will be ahead of last year and in line with its full year expectations for 2019," Peterson said.
Macfarlane shares were down 1.1% in London at 94.00 pence each on Wednesday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Macfarlane Grp. (MACF)