Glasgow packaging stalwart Macfarlane raises dividend despite dip in profits

Glasgow-based protective packaging specialist Macfarlane Group has increased its interim dividend despite a fall in profits after a “resilient” first-half performance.

Glasgow-headquartered Macfarlane Group employs more than 900 people at 31 sites, chiefly in the UK, but also in Ireland and Sweden.

Results for the six months to the end of June revealed group turnover of just under £105.6 million, a fall of 1.8 per cent on a year earlier, resulting in a profit before tax of £3.6m, down 5.5 per cent, year-on-year.

The board is proposing an interim dividend of 0.7p per share, which marks an increase of 1.4 per cent on the same period last year.

Chairman Stuart Paterson said: “Macfarlane Group has achieved a resilient performance in the first half of 2020 despite the challenging market conditions due to the impact of Covid-19.

“All our sites have remained open and trading throughout, albeit adjusted to service reduced demand, with social distancing and hygiene measures in place to protect the health, safety and well-being of our staff and our customers.

“In addition, the majority of our office-based staff have been working successfully from home in accordance with our home working protocols.”

He added: “Despite the impact of Covid-19, our strategy remains the delivery of sustainable profit growth by focusing on added value products and services in our target market sectors, combined with the execution of value-enhancing acquisitions.

“Macfarlane Group’s performance in the first half of 2020 demonstrates the robust nature of our strategy and business model.”

The firm employs more than 900 people at 31 sites. Net bank debt at the end of June was just £800,000, £11.9m below the £12.7m recorded for the end of 2019.

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