Macfarlane Grp. Regulatory News (MACF)

19 May 2008 07:00



Macfarlane Group PLC

Interim Management Statement

Macfarlane Group PLC today publishes its first Interim Management Statement for 2008 to date, ahead of its Annual General Meeting, which takes place tomorrow, 20 May, at 12 noon at the Glasgow Thistle Hotel, Cambridge Street, Glasgow.

The positive trading reported at the time of the preliminary announcement on 18 March 2008 has continued with Group revenue in the first four months of the year 15% ahead of the same period in 2007. Each of the Divisions is making good progress with Distribution revenue 17% ahead of last year (8% organic, 9% acquisition) and Manufacturing 5% ahead of last year. The Group profit performance in the first four months is significantly ahead of last year and in line with the Board's expectations.

The acquisition of Online Packaging was concluded on 7 January 2008 for a total consideration of £5.1m, of which £4.3m was payable immediately with deferred consideration of £0.8m payable in the first quarter of 2009, subject to certain targets being achieved in 2008. The Online business has performed well since the acquisition. In December 2007 agreement was reached to sell a surplus investment property and the proceeds of £2.4m were received on 8 January 2008. Whilst debt has increased as a result of these transactions, the balance sheet remains strong and is capable of supporting our programme of value enhancing acquisitions.

Although the general economic environment in the UK continues to be uncertain strong sales growth and our results in the early months of 2008 confirm our confidence in the management actions we are implementing.

Archie Hunter, Chairman of Macfarlane Group, said "In recent years, considerable effort has been made to rebuild and refocus to create a solid foundation from which the Group can progress. Our extensive network, customer service offering and our experienced and committed team, position Macfarlane well for the future. These factors have contributed to significant progress and a performance to date in 2008, which is well ahead of the same period last year. Notwithstanding the uncertainty in the economic environment, the Board believes that there are good prospects for further significant advances in profitability in the coming years."

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 include a packaging manufacturing business; a business manufacturing self-adhesive and re-sealable labels; and a plastics design and manufacturing operation.

Headquartered in Glasgow, Scotland, Macfarlane Group employs 800 people at 23 sites, principally in the UK and Ireland and services 16,000+ customers, in a wide range of sectors including: consumer goods; logistics; electronics; food manufacturing and retailing; internet and home retailing.