Packaging group Macfarlane has seen a slowdown in demand from e-commerce customers compared to last year as well as rising costs, but still expects growth for the full year.

The Glasgow company announced a 3% growth in half-year pre-tax profits on a 14% increase in revenues.

It has announced the appointment of Aleen Gulvanessian as chair, succeeding Stuart Paterson steps down after nine years on the board. Ms Gulvanessian joined the board in October 2021 as chair of the remuneration committee.

The interim dividend is increased to 0.9p per share (H1 2021: 0.87p per share) to be paid on 13 October to shareholders on the register as at 16 September.

Mr Paterson said: “The group has achieved a solid performance in the first half of 2022, especially when compared to a strong trading period in H1 2021.

“This has been achieved against the backdrop of a slowdown in spend from the e-commerce sector and significant inflationary pressure on operating costs.

“We have also made strategic IT investments and incurred start-up costs on our new North-west of England distribution centre. Our people have consistently demonstrated commitment and operating excellence as the business continues to grow and develop.

“We expect to experience a continuing challenging environment with inflationary pressure on our operating costs and slower demand from our e-commerce customers.

“Overall, the group is confident that the effectiveness of our strategy, the diversity of the customers and sectors we serve, the quality of our people, and the resilience of our business model will ensure 2022 will be another year of growth for Macfarlane. Our expectations for the full year 2022 are unchanged.”