Macfarlane’s 10th profits rise despite uncertainty
The board is confident of the outlook
Packaging group Macfarlane marked its 10th year of pre-tax profit growth, despite economic uncertainty and weaker demand.
The company reported a 10% rise in PTP to £12 million (2018: £10.9m) on a 4% rise in sales to £225.4m (£217.3m).
Packaging Distribution increased sales by 4% in 2019 to £196.7m (2018: £189.8m). Sales revenue from existing customers was impacted by both weaker demand and sales price deflation during 2019 but this was offset by good growth in new business and the benefit of £5.7m from acquisitions.
The 2019 acquisitions of Ecopac (U.K.) and Leyland Packaging Company have both performed well since acquisition.
Sales in Manufacturing Operations at £28.7m (2018: £27.5m) grew by 4% on the previous year.
The board is proposing a final dividend of 1.76 pence per share, amounting to a full year dividend of 2.45 pence, a 7% increase on the prior year’s dividend of 2.30 pence. Subject to shareholder approval at the Annual General Meeting on 12 May, this dividend will be paid on 4 June to those shareholders on the register at 15 May.
Stuart Paterson, chairman, said: “Continued profit growth over a ten year period confirms the board’s confidence that its consistent strategy of positioning the business to serve key growth markets in the protective packaging sector remains appropriate and continues to be effective.
“2020 has started well and profitability in the year to date is ahead of the same period in 2019.”
Macfarlane Group’s performance in 2019 reflects the successful implementation of our strategy and we are confident that the Group will deliver further progress in 2020.”