Firm confident of future
Macfarlane poised for next acquisition as deals boost figures
Peter Atkinson: consolidation
Packaging group Macfarlane is expected to announced another acquisition before the end of the year as recent bolt-on deals helped contribute to a growth in half-hear sales and profits.
Chief executive of the Glasgow-based company Peter Atkinson said the next deal would be concluded “in the next couple of months”.
He said the industry was going through a period of consolidation as the owners of a lot of privately owned companies look to retire.
“We have made about 10 acquisitions in the last five years,” he said. “Hopefully our next announcement in the next couple of months will be our next acquisition. We see a strong pipeline of acquisitions, both in the UK and also in Europe.”
The Glasgow-based company saw half-year profits rise 8.7% to £3.8 million on a 5.4% increase in sales to £107.5m as result of new business growth and the benefits of recent acquisitions.
Stuart Paterson, chairman, said the board had confidence that its full year expectations for 2019 will be achieved.
In recent months the company has acquired Tyler Packaging (Leicester) Harrisons Packaging and Ecopac.
The pension scheme deficit reduced to £9.0m at 30 June 2019 from £9.8m at 31 December 2018.
The board is recommending a 6.2% increase in the interim dividend to 0.69p per share to be paid on 10 October 2019 to shareholders on the register as at 20 September 2019 (2018: 0.65p per share).
“Our strategy is to deliver sustainable profit growth by focusing on added value products and services in our target market sectors, combined with the execution of value-enhancing acquisitions,” said Mr Paterson.
“Macfarlane Group’s performance in the first half of 2019 reflects the successful implementation of this strategy and we are confident that the group will continue to make further progress in the remainder of 2019.”