Macfarlane Group to launch £4m shares buyback – Daily Business

Macfarlane Group, the Scottish packaging group, will begin buying back its shares following discussions with investors.

The Glasgow-based group is expected to buy back up to £4 million of shares and will announce details later this week.

Chair Aleen Gulvanessian will tell shareholders at today’s Annual General Meeting that group expectations for the full year are unchanged.

Sales in Q1 2025 were 14.2% ahead of the same period in 2024 with the benefit of acquisitions, signs of organic growth momentum in Distribution and a strong performance from our Manufacturing Operations.

Profit in Q1 2025 was behind the same period in 2024 due to lower gross margins, duplicate costs related to the consolidation of our East Midlands operations, and increased property costs and acquisition related costs.

In January 2025, Macfarlane completed the acquisition of The Pitreavie Group, a protective packaging business in Scotland. Macfarlane is working with Pitreavie management on sales, cost and sourcing synergies.

The group said it anticipates performance to improve in H2 2025 as it completes a number of targets around the East Midlands site consolidation and building on organic growth momentum in Distribution.

It is also making progress on new business and maintaining a strong performance of the Manufacturing Operations.

Management is taking action to mitigate the impact of increases in National Insurance and National Minimum Wage which took effect from 1 April.

Net bank debt at 31 March was £13.0m compared to £1.9m at 31 December, after the net investment of £13.9m for the acquisition of Pitreavie. The group continues to operate within its bank facilities of £40m and related covenants, which are committed until November 2027.

Ms Gulvanessian will tell shareholders: “Market conditions continue to be challenging, and global economic uncertainty is impacting the behaviour of some customers.

“However, the Group sees positive momentum in several areas, and we have a clear action plan for the remainder of the year which will enable Macfarlane to continue its progress.

“Our decision to commence buying back shares has been made following extensive dialogue with our shareholders.

“This reflects our capital allocation policy of investing in the business, making acquisitions, and returning capital to shareholders through dividends and, when appropriate, share buybacks.”

In a note this morning, analysts at Shore Capital say “Macfarlane has proved agile and responded very well to the challenging market conditions.

“Building momentum in Q1, H2 is expected to show improved profitable growth.”