Macfarlane Group publishes its 2025 Interim Results

INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2025

Full year outlook in line with market expectations

 

Financial Highlights

  

H1 2025

£000

  

H1 2024

£000

 Increase/ (decrease)

%
Statutory Measures      
Revenue 146,591 129,598 13%
Gross profit 55,385 51,458 8%
Operating profit 7,030 10,606 (34)%
Profit before tax 4,961 9,701 (49)%
Profit for the period 3,699 7,237 (49)%
Interim dividend (pence) 0.96p 0.96p -%
Diluted earnings per share (pence) 2.32p 4.51p (49)%
Alternative performance measures      
Adjusted operating profit1 9,787 12,533 (22)%
Adjusted profit before tax 7,932 11,628 (32)%
Adjusted diluted earnings per share (pence) 3.78p 5.37p (30)%
  • See note 2 for reconciliation of Alternative Performance Measures (before charging amortisation and deferred contingent consideration adjustments) to Statutory Measures.

Key Financial Highlights

  • Group revenue increased by 13% to £146.6m (H1 2024: £129.6m).
  • Group adjusted operating profit reduced by 22% to £9.8m (H1 2024: £12.5m).
  • Basic and diluted earnings per share were 2.32p per share (H1 2024: 4.55p per share) and 2.32p per share (H1 2024: 4.51p per share) respectively.
  • Distribution generated revenues of £110.4m (H1 2024: £110.9m) with adjusted operating profit of £4.8m (H1 2024: £9.3m).
  • Manufacturing Operations increased revenues to £39.2m (H1 2024: £21.3m) and reported adjusted operating profit of £5.0m (H1 2024: £3.2m).
  • Net cash inflow from operating activities of £12.4m (H1 2024: £14.1m) reflects continued management of working capital.
  • Net bank debt was £15.2m on 30 June 2025, following a net cash outflow of £13.3m since 31 December 2024, after £16.5m (H1 2024: £5.0m) attributable to acquisitions and capital expenditure.
  • The Group is operating well within its bank facility of £40.0m which runs until 30 November 2027 with options to extend to November 2029.
  • Pension scheme surplus of £9.2m on 30 June 2025 (31 December 2024: £9.6m) with the Group not required to make any further contributions.
  • Interim dividend of 0.96p per share (H1 2024: 0.96p per share) – to be paid on 9 October 2025 to shareholders on the register as at 12 September 2025 (ex-dividend date 11 September 2025).

2025 Trading Outlook

Performance improvement expected in H2 2025 through seasonal trading uplift and actions the management team is taking to manage input cost changes, mitigate operating cost increases, convert our strong pipeline of new business and deliver synergies from the Pitreavie acquisition. The full year outlook for 2025 is in line with market expectations.

 

Aleen Gulvanessian, Chair of Macfarlane Group PLC, commented on the interim results: “As noted in the trading update on 10 July, market conditions have been challenging in H1 2025 due to economic headwinds and uncertainty.

 

“Whilst Distribution has experienced weaker than expected demand, delays in new business decision-making and pressure on profit margins, Manufacturing Operations has performed more robustly. Manufacturing Operations’ performance was driven by good contributions from the acquisitions of Polyformes Limited in July 2024 (“Polyformes”) and The Pitreavie Group Limited in January 2025 (“Pitreavie”) combined with stronger demand from customers, particularly in the defence and aerospace sectors.

 

“The recently launched share buyback programme will continue as planned.

 

“Despite the current market conditions, the Board remains confident that our strengthened sales team, differentiated customer proposition and proven executional skills mean the medium-term prospects for the Group are positive.”

 

Further enquiries: Macfarlane Group Tel: 0141 333 9666
Aleen Gulvanessian           Chair
Peter Atkinson                    Chief Executive
Ivor Gray                             Finance Director
Spreng Thomson
Callum Spreng Mob: 07803 970103

 

Legal Entity Identifier (LEI):  213800LVRYDERSJAAZ73