Interim Management Statement

RNS Number : 2868G

Macfarlane Group PLC

10 May 2011

 



INTERIM MANAGEMENT STATEMENT

Macfarlane Group PLC today publishes its Interim Management Statement for 2011 to date.  At the Annual General Meeting, Archie Hunter, Chairman of Macfarlane Group, said:-

"Revenue in our Packaging Distribution business is 4% ahead of last year and despite continuing raw material price pressure, profitability is well ahead of that achieved in 2010.  Progress in this business is now reflecting the impact from a number of our strategic initiatives, most notably increased penetration of the UK third-party logistics sector and the launch of a range of Presentational and Retail Packaging products.

As part of our plan to reduce operating costs in the Packaging Distribution business, the Regional Distribution Centre ("RDC") at Hayes will be relocated in the middle of 2011 to lower cost premises.  There are other opportunities under consideration to reduce the long-term property cost of our Packaging Distribution business and these will be advised when concluded.

Our Manufacturing Operations' revenue is 2% below 2010 levels, mainly due to reduced sales volumes in our Labels business, resulting in a small loss in this business for the year to date.  However there is good momentum in the Reseal-it™ label range, which we expect to address these pressures and enable the business to return to profitability.  Progress continues in the Packaging Manufacturing business, which made a small profit in the year to date.

The Group is evaluating additional strategies to further reduce the pension scheme deficit.  Although net debt has increased in line with our normal business cycle in the first half of 2011, the Group continues to operate well within its existing bank facilities.  As previously indicated, we shall pay a dividend of 1.05p per share on 9 June 2011, subject to shareholder approval later today.

There are real opportunities for Macfarlane Group in our strategic action plans and these provide encouraging growth potential.  We have an able and committed complement of people and they are focused on the exciting challenges ahead. 

Against a background of continuing economic uncertainty, the business continues to perform in line with the Board's expectations for 2011."

Further enquiries: Macfarlane Group	Tel: [phone]
Archie Hunter               Chairman
Peter Atkinson              Chief Executive
John Love                     Finance Director
Spreng & Co Callum Spreng	Tel: [phone]

Notes to Editors:

The 2011 Annual General Meeting of Macfarlane Group PLC will take place on 10 May 2011 at the Thistle Hotel, Cambridge Street, Glasgow.

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 comprise two businesses, the manufacture and supply of transit packaging and the manufacture and supply of self-adhesive and re-sealable labels.  Headquartered in Glasgow, Scotland, Macfarlane Group employs 700 people at 22 trading sites, principally in the UK and Ireland, servicing 20,000+ customers, in a wide range of sectors including: fast-moving consumer goods; logistics; electronics; aerospace; automotive; food manufacturing; retail and e-commerce retailing.

 

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