Last checked at 16 Nov 2010 07:00
Interim Management Statement
16 November 2010
Macfarlane Group PLC today publishes its Interim Management Statement for the period from 30 June 2010 to date. As anticipated in the interim results announcement and in accordance with its normal trading cycle, the Group has recorded a stronger trading performance since June than in the first half of the year.
In Packaging Distribution, year to date sales levels remain 9% ahead of 2009. However following a series of industry supplier price increases in the first half of the year, further price increases have been implemented by suppliers and the inevitable delay in passing these increases on to our customer base has led to lower gross margins in the second half of 2010. As a result profits before exceptional items in this Division are currently running at similar levels to those seen in 2009.
Manufacturing Operations' sales are 9% above those seen in 2009. Having taken actions in 2009 to ensure that our cost base was aligned with lower levels of demand, both businesses in the division, Labels and Packaging Manufacturing, have traded profitably in 2010. As a result profits before exceptional items in this Division are currently ahead of those seen in 2009.
Bank borrowings have reduced since 30 June 2010 and are expected to reduce further in the remainder of 2010, as a result of traditionally strong inflows from working capital in the final months of the year.
Whilst recent rises in equity markets have improved investment values in the Group's final salary pension scheme, reductions in bond yields have offset most of this improvement. The Group remains committed to addressing the means by which the level of deficit and its volatility can be managed in future years and further actions to this effect are in progress.
Archie Hunter, Chairman of Macfarlane Group, said
"Whilst we remain cautious over future demand levels and the pass-through of supplier price increases remains a considerable challenge, we have taken actions necessary to manage the situation and the Board believes that the results for 2010 remain broadly in line with its expectations."
Further information: Archie S. Hunter Chairman 0141 333 9666 |
Peter D. Atkinson Chief Executive |
John Love Finance Director |
Callum Spreng Spreng & Co 0141 229 0482 07803 970103 |
Notes to Editors:
Macfarlane Group PLC is a UK-based group of companies focused on packaging-related activities. The Packaging Distribution business is the leading UK distributor of a comprehensive range of packaging consumable products. The Manufacturing Operations comprise two businesses, the manufacture of transit packaging and the manufacture of self-adhesive and re-sealable labels. Headquartered in Glasgow, Scotland, Macfarlane Group employs 700 people at 22 sites, principally in the UK and Ireland, servicing 20,000+ customers, in a wide range of sectors including: consumer goods; logistics; electronics; food manufacturing and retailing; internet and home retailing.