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Highlight

  • Group revenue increased by 13% to £146.6 million (USD 192.3 million), though adjusted operating profit fell by 22% year-on-year.

  • Manufacturing Operations division reported revenue growth to £39.2 million (USD 51.4 million), contributing an adjusted operating profit of £5.0 million (USD 6.6 million).

  • Interim dividend of 0.96 pence per share declared, with payment scheduled for 9 October 2025.

Macfarlane Group PLC (LSE:MACF), a provider of protective packaging solutions, has released its unaudited interim financial results for the six months ended 30 June 2025. The company reported revenue growth, contrasting performance across its operating divisions, and reaffirmed that its full-year outlook remains in line with market expectations.

Financial Performance

Group revenue for the first half of 2025 was £146.6 million (USD 192.3 million), an increase of 13% compared with £129.6 million (USD 170.0 million) in the same period of 2024. Despite revenue growth, group adjusted operating profit decreased by 22% to £9.8 million (USD 12.9 million) from £12.5 million (USD 16.4 million) in the first half of the prior year.

Basic and diluted earnings per share were 2.32 pence, compared with 4.55 pence and 4.51 pence respectively in H1 2024, highlighting a decline in profitability on a per-share basis.

Divisional Performance

Macfarlane’s Distribution business generated revenues of £110.4 million (USD 144.7 million), marginally lower than the £110.9 million (USD 145.4 million) reported in H1 2024. Adjusted operating profit for this segment decreased to £4.8 million (USD 6.3 million) from £9.3 million (USD 12.2 million).

In contrast, the Manufacturing Operations division recorded revenue of £39.2 million (USD 51.4 million), significantly higher than £21.3 million (USD 27.9 million) a year earlier. Adjusted operating profit also increased to £5.0 million (USD 6.6 million) compared with £3.2 million (USD 4.2 million) in H1 2024, reflecting the division’s contribution to group earnings.

Cash Flow and Balance Sheet

Net cash inflow from operating activities was £12.4 million (USD 16.3 million), compared with £14.1 million (USD 18.3 million) in the prior year. The Group reported net bank debt of £15.2 million (USD 19.9 million) as of 30 June 2025, following a net cash outflow of £13.3 million (USD 17.4 million) since the year-end, primarily due to £16.5 million (USD 21.5 million) of acquisitions and capital expenditure.

Macfarlane continues to operate well within its £40.0 million (USD 52.4 million) bank facility, which runs until November 2027 with extension options to November 2029.

The Group’s pension scheme reported a surplus of £9.2 million (USD 12.0 million) as at 30 June 2025, compared with £9.6 million (USD 12.6 million) at 31 December 2024. No further contributions are required.

Dividend and Outlook

An interim dividend of 0.96 pence per share will be paid on 9 October 2025 to shareholders on the register as at 12 September 2025. The ex-dividend date is 11 September 2025.

Looking ahead, Macfarlane anticipates performance improvement in the second half of 2025 through seasonal trading, ongoing cost management, new business conversion, and synergies from the Pitreavie acquisition. The Group reaffirmed that the full-year 2025 outlook remains in line with market expectations.