Macfarlane Group (MACF)

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85.00p
   
  • Change Today:
      2.50p
  • 52 Week High: 113.50p
  • 52 Week Low: 63.50p
  • Currency: UK Pounds
  • Shares Issued: 157.81m
  • Volume: 68,553
  • Market Cap: £134.14m
  • RiskGrade: 151

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Macfarlane Group wraps up first half of sales and profit growth

By Josh White

Date: Thursday 22 Aug 2019

LONDON (ShareCast) - (Sharecast News) - Macfarlane Group reported a 5.4% improvement in its group turnover for the first half on Thursday, to £107.54m.
The London-listed packaging and labelling firm said its profit before tax was 8.7% higher year-on-year, at £3.83m, with its diluted earnings per share rising 9.9% for the six months ended 30 June to 1.99p.

Its board recommended an interim dividend of 0.69p per share, which was 6.2% higher than the company's interim distribution in 2018.

Macfarlane's chairman Stuart Paterson said the group's sales growth was achieved against a background of "well-publicised" weaker demand.

He explained that the company's performance in the first six months of 2019, and its actions in place to increase its margin in the second half, together with the usual seasonal uplift from the e-commerce sector in the final quarter, gave its board "confidence" that full-year expectations would be achieved.

In packaging distribution, sales were ahead by 4.4%.

"Sales revenue from existing customers was impacted by weaker demand and sales price deflation but this was offset by good new business growth and the benefit of the 2018 acquisitions of Tyler Packaging Leicester and Harrisons Packaging, as well as the recent acquisition of Ecopac UK concluded at the start of May," Paterson said.

"First half operating profit in packaging distribution at £4.5m was ahead of the equivalent period in 2018."

Sales in the company's manufacturing operations were 16.0% above 2018, with strong demand reported for resealable labels, mainly through new customer wins.

First half operating profit in the division was £0.4m - above that achieved in 2018.

Net bank debt at 30 June was £15.0m, which was £1.8m above the level as at 31 December, primarily due to a £2.8m cash outflow on the acquisition of Ecopac.

"The group is operating well within its existing bank facility of £30.0m," Stuart Paterson said.

"We expect to finance an estimated £1.4m in deferred consideration payable in the second half of 2019, relating to the acquisitions of Tyler and Harrisons.

"Consistent with our normal pattern, we expect to be strongly cash generative from trading in the second half of the year."

The firm's pension scheme deficit reduced to £9.0m as at 30 June, from £9.8m on 31 December, mainly due to the company's continued payment of deficit reduction contributions during the six month period.

"The significant reduction in the discount rate in the first six months was largely offset by strong investment returns, justifying the focus on liability-driven investments to match the scheme's liability profile," Paterson added.

"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.

"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."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

MACF Market Data

Currency UK Pounds
Share Price 85.00p
Change Today 2.50p
% Change 3.03 %
52 Week High 113.50p
52 Week Low 63.50p
Volume 68,553
Shares Issued 157.81m
Market Cap £134.14m
RiskGrade 151

MACF Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
53.72% below the market average53.72% below the market average53.72% below the market average53.72% below the market average53.72% below the market average
21.82% below the sector average21.82% below the sector average21.82% below the sector average21.82% below the sector average21.82% below the sector average
Price Trend
3.61% above the market average3.61% above the market average3.61% above the market average3.61% above the market average3.61% above the market average
13.04% above the sector average13.04% above the sector average13.04% above the sector average13.04% above the sector average13.04% above the sector average
Income
15.02% below the market average15.02% below the market average15.02% below the market average15.02% below the market average15.02% below the market average
10.81% above the sector average10.81% above the sector average10.81% above the sector average10.81% above the sector average10.81% above the sector average
Growth
24.39% above the market average24.39% above the market average24.39% above the market average24.39% above the market average24.39% above the market average
Sector averageSector averageSector averageSector averageSector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
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MACF Dividends

  Latest Previous
  Interim Interim
Ex-Div 10-Sep-20 19-Sep-19
Paid 08-Oct-20 10-Oct-19
Amount 0.70p 0.69p

Trades for 25-Sep-2020

Time Volume / Share Price
16:23 25,000 @ 84.00p
15:15 400 @ 84.04p
14:56 9,000 @ 84.25p
14:55 1,860 @ 85.11p
14:48 2,338 @ 85.11p

MACF Key Personnel

Finance Director John Love
CEO Peter Atkinson
Chair Stuart R Paterson

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