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Highlights:

  • MACF expects FY25 adjusted operating profit to decline ~10% versus FY24 levels.
  • MACF  sees softer demand and delayed new business decisions in Distribution.
  • MACF shares fall 15.36% to trade at GBX 98.60 on 10 July 2025.

Macfarlane Group plc (LSE:MACF) issued a trading update ahead of its 2025 interim results, now scheduled for release on 28 August 2025. The company announced that it expects full-year 2025 adjusted operating profit to be approximately 10% below 2024 levels, citing broad economic uncertainty and weakened momentum in Q2.

The Group's Distribution division has been impacted by lower-than-expected customer demand, extended delays in business decision-making, and increased competitive pressure on margins. Rising input costs, along with slower-than-expected recovery of labour and property-related expenses, have added further strain to performance in the first half of the year.

In contrast, the Manufacturing Operations segment has seen better performance, particularly among aerospace and defence customers. This part of the business has also benefited from the integration of Polyformes, which Macfarlane acquired previously. However, this was partially offset by a slowdown in sectors affected by continued uncertainty around US tariff policy.

Macfarlane's recent acquisition of Pitreavie, completed in January 2025, is anticipated to contribute more in the second half of the year. Management expects seasonal demand uplift and additional sales generated through internal supply into the Distribution network.

The Group is now focusing on mitigating rising costs, implementing further cost-saving initiatives, and converting a pipeline of potential new business to offset market pressures. Despite the decline in profit expectations, net bank debt remains well within the Group’s GBP 40 million banking facility.

The previously announced share buyback programme will continue as planned, indicating that the Group is maintaining its capital management commitments despite the softer trading environment.

Chair Aleen Gulvanessian acknowledged the challenging macroeconomic context and noted that the positive momentum observed earlier in Q2FY25 did not sustain through the quarter. She emphasised management’s focus on delivering cost recovery and progressing new business opportunities in the second half of the year. Further detail will be provided with the release of interim results in late August.

Shares of Macfarlane Group dropped 15.36% on 10 July 2025 to trade at GBX 98.60 per share.