Macfarlane Group

Macfarlane Group PLC is a market leading UK packaging company operating three businesses:
•The distribution of packaging consumables
•The design and manufacture of bespoke transit packaging
•The design and manufacture of self-adhesive and resealable labels

Macfarlane Packaging Distribution

Macfarlane Packaging is the UK market leader in the distribution of packaging consumable products. We supply customers on a local, regional and national basis through our 16 UK Regional Distribution Centres and have a market share of circa 20%,

Our objective is to ensure our customers are supplied with the most cost-effective packaging products and services to protect their products during transit and storage.

We do this by providing an extensive product range, un-biased guidance on the most effective choice of packaging and packing systems.

We supply over 20,000 product lines across the following product groups:
•Boxes and Cartons
•Packing Tapes
•Labels
•Postal Products
•Protective Papers
•Cushioning & Void Fill Solutions
•Edge Protection
•Stretch Films
•Polythene Packaging
•Strapping
•Presentational and Retail Packaging
•Packing Machinery
•Automated Packing Systems

Macfarlane Packaging Design and Manufacture

The Design and Manufacture business designs, manufactures and assembles bespoke packaging solutions for customers requiring cost effective methods of protecting higher value products in storage and transport.

Key market sectors supplied are Industrial, Defence, Aerospace, Electronic and Medical sectors.

We use leading design software, an extensive range of packaging materials and a variety of manufacturing and assembly processes to:
•Deliver enhanced levels of protection during transport
and storage.
•Improve cost-efficiency, to help reduce packaging and transport costs.
•Eliminate excess packaging, to reduce waste from shipping operations.
•Respect the environment, using easily recyclable, sustainable materials wherever possible.
•Make packaging easier to use, freeing up labour and storage space for more productive use.

Macfarlane Labels

Employing over 100 people, Macfarlane Labels Ltd designs and manufactures self-adhesive and resealable labels for major fast-moving consumer goods (“FMCG”) customers in the UK, Europe and USA.

The business operates from two production sites in Kilmarnock, Scotland and Dublin, Ireland and a sales and design office in Sweden which focuses on the development and growth of our resealable labels business – Reseal-it™.

In this weeks IC - The packaging materials sector isn't where you'd normally expect to find a super-hot momentum share. Indeed, Macfarlanes story is hardly one of high growth.But what is attractive about it is a combination of operational strength, a low earnings-based valuation and an increasingly safe-looking bumper yield. Facing a tough economic outlook, the company has focused on cutting costs and paying down debt in recent years, which has started to make the dividend look a more solid bet. It has also been eking some growth from its manufacturing and logistics businesses.

07:00


Macfarlane Group PLC - Interim Management Statement


RNS





RNS Number : 0408R

Macfarlane Group PLC

14 November 2012




Interim Management Statement

14 November 2012



Macfarlane Group PLC today publishes its Interim Management Statement for the period from 30 June 2012 to date. In accordance with its normal trading cycle, the Group has recorded a stronger trading performance since June than in the first half of the year.

In Packaging Distribution, sales revenues are 1% below 2011 for the year to date and whilst demand has weakened since June, this has been partly offset by new business wins, increased penetration in the third party logistics sector and growth in web sales. Gross margins remain ahead of last year and with overhead costs similar to 2011 levels, the profit before exceptional items continues to show good growth versus last year.

Manufacturing Operations' sales are 2% below 2011 for the year to date and mainly reflect previous actions taken to address lower margin business. The improved customer mix and focus on the higher added value areas of each business - resealable labels within Labels and design-led work within Packaging Manufacturing - have contributed to the recovery in gross margins. In overall terms, profit before exceptional items from our Manufacturing Operations is well ahead of that achieved in 2011.

Net interest costs are similar to those seen last year. The net effect of these factors is that the Group's profit before exceptional items for 2012 to date remains well ahead of 2011.

Bank borrowings at 30 June 2012 are expected to reduce by the end of the year as a result of traditionally strong working capital inflows in the final quarter.

The benefit of £1.5m from the Pension Increase Exchange exercise disclosed at 30 June 2012 remains unchanged and is classified as an exceptional credit. The Group continues to address the means by which the level of deficit and its volatility can be managed. As previously reported, the effect of bond yields on the level of the deficit is the major influence on distributable reserves and the level of dividend payment. However the Board reiterates its objective to pay a full dividend for 2012 from existing cash flows and we shall continue to keep shareholders advised of progress.

The tenant of our leased property in County Wicklow, Ireland has given notice that it will exercise a break clause in its lease, with the property reverting to Macfarlane Group's use in January 2013. As a result the Group will take the opportunity to use this higher quality and better-located site as the base from which to accelerate the development of our resealable labels business and expand our current activities in Ireland. The impact of this change is that the current smaller Manufacturing site in Dublin will be closed and activities relocated to Wicklow by the end of the first quarter in 2013. The Dublin closure will give rise to an exceptional charge of £0.7m of which £0.5m will be non-cash. This will be charged as an exceptional item in the financial statements to 31 December 2012.

Graeme Bissett, Chairman of Macfarlane Group, said

"Macfarlane Group continues to make solid progress, despite demand conditions remaining subdued. Whilst we do not expect general economic conditions to improve in the short term, the Board remains confident that Group results for 2012 will be in line with its expectations."

:-))

Final Results

MACFARLANE GROUP PLC ANNUAL RESULTS FOR THE YEAR TO 31 DECEMBER 2012


· Profit before tax and before exceptional items of £4.9m (2011: £3.9m)

· Group turnover of £141.8m (2011: £144.6m)

· Profit before tax of £5.9m (2011: £3.9m) after net exceptional credits in 2012 of £1.0m

· Net debt reduces to £6.8m (2011: £7.6m)

· Pension deficit reduces to £18.9m (2011: £20.5m)

Ÿ Proposed final dividend of 1.05p per share, providing full year total of 1.55p (2011 - 1.55p)





http://www.moneyam.com/action/news/showArticle?id=4548737

Notice of Results

RNS


RNS Number : 2255J

Macfarlane Group PLC

12 July 2013






Macfarlane Group PLC



Notice of Interim results





Following the issue of the Interim Management Statement on 7 May 2013, Macfarlane Group PLC confirms that it will announce its interim results for the six months ended 30 June 2013 on Thursday 29 August 2013.

Macfarlane Group PLC (MACF:LSE) set a new 52-week high during Friday's trading session when it reached 31.99. Over this period, the share price is up 73.61%.

MACFARLANE GROUP PLC ANNUAL RESULTS FOR THE YEAR TO 31 DECEMBER 2013


http://www.moneyam.com/action/news/showArticle?id=4762897

Ex-Dividend
07 May 14 Macfarlane Group PLC [MACF] (1.1 p)

Final results Thursday 28 August

RNS


RNS Number : 1750Q

Macfarlane Group PLC

28 August 2014










28 August 2014



MACFARLANE GROUP'S INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2014



Ÿ Sales 3% ahead of last year at £70.1m (2013: £68.1m)

Ÿ Profit before tax and exceptional items of £1.2m (2013: £1.6m)

Ÿ Profit after exceptional items and tax of £1.0m (2013: £1.0m)

Ÿ Acquisition of Lane Packaging performing to plan and further acquisitions are planned

Ÿ Board is confident that full year expectations will be met

Ÿ Pension deficit reduced by £2.7m since December 2013 reflecting additional contributions of £2.5m

Ÿ Net debt of £11.6m (30 June 2013: £7.2m) reflecting additional pension scheme contribution and acquisition of Lane Packaging

Ÿ Interim dividend of 0.50p per share proposed for payment October 2014 (2013: 0.50p per share)




Graeme Bissett, Chairman of Macfarlane Group PLC, today said: -

"Performance in the six months to 30 June 2014

Our results for the six months to 30 June 2014 are in line with our statement at the AGM in May. Group sales were 3% ahead of the comparable period in 2013, but Group profit before exceptional items at £1.2m was behind the level achieved in 2013 due mainly to margin pressure and our increased weighting in the internet retail sector where the trading pattern of customers is more highly focused towards the second half of the year. The Board is confident that full year expectations will be met.

In our core Packaging Distribution business, sales were 4% ahead of 2013. Margins in that division were lower, reflecting a competitive market and despite overheads being held at 2013 levels, operating profit before exceptional items was slightly down on 2013 at £1.5m (2013: £1.6m). Our Manufacturing Operations' operating profit before exceptional items was £0.2m (2013: £0.6m). This reflected lower sales in Packaging Design and Manufacture due to the absence of higher-margin project work, which benefited the first half of 2013 and margin erosion in our Labels business caused by the highly competitive conditions in the UK retail sector.

In May 2014, we acquired Lane Packaging, a packaging distributor based in Reading. It is pleasing to report that the business is performing well.

Net debt at 30 June 2014 was £11.6m, an increase of £4.4m compared to the same point last year. A new longer-term borrowing facility was put in place in February 2014 to accommodate working capital requirements, finance for acquisitions and a contribution to reduce the pension scheme deficit. In the first half of 2014, an additional £2.5m was paid to the pension scheme and the initial cost of acquiring Lane Packaging, including inherited debt, was £1.2m. The pension scheme deficit reduced from £15.9m at 31 December 2013 to £13.2m at 30 June 2014, mainly as a result of the additional £2.5m contribution. The first half has also seen the expected seasonal uplift in working capital.

The Board expects Group trading to be strongly cash generative in the second half of 2014.

Dividend

The Board is recommending that an interim dividend of 0.50p per share be paid on 16 October 2014 to shareholders on the register as at Friday 10 October 2014.

Outlook

Signs of growth in the economy are now more evident and our results in July and August to date are encouraging. Combined with our strength in the more seasonal internet retail sector, these factors should support the planned uplift in performance in the second half of 2014. Accordingly, the Board is confident that our full year expectations will be met.

Future growth for Macfarlane Group will be mostly dependent on our continuing efforts to win new business in target sectors and through value-enhancing acquisitions. Discussions are moving ahead well on prospective acquisitions. The Board will take steps to ensure that the funding of this programme continues to achieve a proper balance between debt and equity. Acquisitions are an important aspect of our strategy and we look forward to updating shareholders when appropriate."

8 SEPTEMBER 2014



MACFARLANE GROUP PLC

("Macfarlane" or the "Company")

Acquisition of Network Packaging Limited

Placing and Notice of General Meeting



The Company is pleased to announce it has conditionally raised £3 million (before expenses) by way of a placing of 8,000,000 Placing Shares at 37.5 pence per Placing Share with institutional investors. In addition, it is also announced that the Company had completed the acquisition of the entire issued share capital of Network Packaging for a maximum consideration of approximately £7.5m. The acquisition is not conditional on the Placing.

As the allotment and issue of the Placing Shares will exceed the existing authorities which the Directors have to allot new Ordinary Shares for cash on a non pre-emptive basis, a general meeting of Shareholders is being convened to seek approval to grant new authorities to enable the Directors tocomplete the Placing. If Shareholder approval of either of the Resolutions is not given at the General Meeting, the Placing as currently envisaged will not proceed.

The Placing Shares to be issued pursuant to the Placing are to be admitted to the Official List and admitted to trading on the Main Market of the London Stock Exchange, which is expected to take place at 8.00 a.m. on 2 October 2014.

Macfarlane's Chief Executive, Peter Atkinson commented:

"The Board is very pleased with the high level of support being shown for its strategy by both new and existing institutional shareholders. The successful acquisition of Lane Packaging earlier this year demonstrates our ability to identify, complete and integrate acquisitions effectively.

"Network Packaging is a successful company and today's acquisition demonstrates our continuing commitment to the strategy of developing our UK Packaging Distribution business. We are delighted that the Network Packaging management team will remain with the business. They will add to our management capability and their experience in the third-party logistics sector and internet retail will complement the existing Macfarlane strengths in these market sectors."

14/10/2014 BUY Bob McLellan NED 78,791
10/10/2014 BUY John Love FD 50,000

RNS


RNS Number : 0040X

Macfarlane Group PLC

14 November 2014






Interim Management Statement

14 November 2014

Macfarlane Group PLC today publishes its Interim Management Statement for the period from 30 June 2014 to date. As expected and in accordance with its normal trading cycle, the Group has recorded a stronger trading performance since June than in the first half of the year.

In Packaging Distribution, sales for the year to date have increased by 7% (5% before acquisitions) over 2013. As anticipated, sales have strengthened since June as a result of new business wins secured in the first half of the year, increasing penetration in the Group's target sectors and the benefit of the acquisition programme. Gross margins remain slightly lower than last year, reflecting competitive market conditions, but have improved in the second half of the year. Overhead costs continue to be tightly controlled and operating profit before exceptional items is ahead of the level achieved in 2013. The two acquisitions in Packaging Distribution, Lane Packaging and Network Packaging, have both performed well since acquisition. We expect to report operating profit for the full year, before exceptional items, from Packaging Distribution well above that achieved in 2013.

Sales from Manufacturing Operations are 2% below 2013 for the year to date. Improved customer focus on higher added value areas in the Packaging Design & Manufacture business has helped maintain gross margins and profitability is at a similar level to 2013. The Labels business continues to experience margin pressure as a result of the highly competitive markets for self-adhesive labels, particularly in the UK retail sector. This pressure is not being entirely offset by continued growth in re-sealable labels and, as a result, performance is below that achieved in 2013. Consequently, operating profit for the full year before exceptional items in the Manufacturing Operations is expected to be below 2013 levels.

Interest costs for the Group in 2014 are at similar levels to last year.

The net effect of all these factors is that Macfarlane Group's profit before exceptional items for 2014 to date is ahead of the corresponding period in 2013 and these trends are expected to continue for the remainder of 2014.

The recent share placing to help fund the acquisition programme was well supported by new and existing institutional investors and at the General Meeting last month shareholders approved the issue of 8,000,000 ordinary shares at a price of 37.50p each. Bank borrowings as at 30 June 2014 are expected to reduce by the end of the year as a result of the traditionally strong working capital inflows in the final quarter.

The Board reiterates its objective to pay a full dividend for 2014.

Graeme Bissett, Chairman of Macfarlane Group, said

"I am pleased to report that the planned uplift in Macfarlane Group's performance in the second half of the year is being delivered and that profit for the year to date is ahead of the same period in 2013. Both of our acquisitions in Packaging Distribution in 2014 are performing well and we will continue to seek further value-enhancing acquisitions as part of our growth strategy. The Board remains confident that our full year expectations will be met

Final Results

Macfarlane Group (LON: MACF) is the largest distributor of packaging products and services in the UK. They are also a niche manufacturer of labels and protective packaging.

The company announced its final results on February 26 highlighting 14% full year earnings growth – the second consecutive year of double digit earnings growth.

The future looks encouraging too with the core Packaging Distribution business blazing a trail.

Further business wins and continued encouraging net margin trends will be key drivers to this momentum.

Shard believes that there will be continued growth in online retail generating stronger demand for boxes and packaging. Macfarlane currently has a 20% share of the protective packaging market.

The company must continue the good recent work and successfully identify further suitable acquisitions.

The shares trade on just over 9 times full year 2015 earnings and have a yield of over 4%. This week’s results announcement confirmed that the “Group expects to make further acquisitions in the year ahead”. We eagerly await further news.



proactiveinvestors,shard-market-eye-macfarlane-group

Macfarlane set to re-rate


IC - A buy -A strong set of full-year results has left shares in Macfarlane Group

(MACF), the UK's leading supplier of protective packaging materials, looking undervalued trading at just nine times 2015 forecast earnings and boasting a 4.1 per cent prospective yield.

A fairly wide bid-offer spread may act as something of an impediment to a re-rating. All the same, the share rating looks too low and, as the benefits of the acquisition strategy start to show through, we expect the price to move higher. In the meantime, the well-covered dividend will pay investors to wait. Buy

Acquisition of One Packaging Limited
RNS
RNS Number : 1109V
Macfarlane Group PLC
05 August 2015




5 August 2015

Macfarlane Group PLC acquires One Packaging Limited


In line with the Group's strategy to develop its Packaging Distribution businesses, Macfarlane Group PLC ("Macfarlane") announces that it has today concluded an agreement to acquire One Packaging Limited ("One"), for a consideration of up to £2.75 million. The initial consideration of £2.0 million will be paid in cash from Macfarlane's existing borrowing facilities. The deferred consideration of up to £0.75 million will become payable in the third quarter of 2016, subject to certain trading targets being met in the twelve month period following acquisition ("the earn-out period"). Half the deferred consideration will be paid in cash and half will be paid in ordinary shares in Macfarlane Group PLC. One was established in 2003 and is a packaging distributor based in Bingham near Nottingham, which will strengthen Macfarlane's existing Packaging Distribution activities in the East Midlands.

One made an operating profit of £0.4 million before non-recurring costs on turnover of £4.9 million in the financial year to 31 July 2014. Gross and net assets in the audited accounts at that date totalled £2.0 million and £0.1 million respectively. The acquisition is based on net assets at completion totalling £0.2 million. The deferred consideration reflects One's business plan to improve turnover and operating profits by over 25% by the end of the earn-out period.

Macfarlane's Chief Executive, Peter Atkinson commented: "One is a good quality, successful packaging distributor. This acquisition demonstrates our continuing commitment to the strategy of developing our leadership position in the UK market for the distribution of protective packaging. We are delighted that Greg Almond will remain with the business. His considerable knowledge and expertise will complement the existing Macfarlane business in the East Midlands

IC - Macfarlane's shares have started to re-rate, but still trade on a modest 10 times next years consensus earnings forecasts . That's a discount to the sector, which seems unwarranted given the growth profile.

Shares - At 48p Macfarlane's 2015 price to earnings ratio of 10.7 and 3.7% dividend yield suggest it is undervalued given its strong growth prospects.