Macfarlane Group confident of meeting full-year targets

Macfarlane Group continued to perform well in the first half of 2017, augmenting its directors' confidence that its full year expectations for the year will be achieved, the group announced on Thursday.

Group sales increased 10% to £89.8m from £81.5m in the comparable period of 2016, while profit before tax was 27% higher to £2.58m from £2m in 2016.

Sales in the packaging distribution section rose 12% to £78.1m on £70m on the first half of 2016, with 3% attained from organic growth and the remainder recent acquisitions.

However, sales in the group's manufacturing operations dipped 1% to £13.6m from £13.7m with the company blaming the decline on its new focus on higher margin sales.

Net debt at 30 June 2017 also reduced to £14.6m, £1.5m less than the December 2016 level.

Company chairman Graeme Bissett said the latest set of interims showed management was successfully executing the group's strategy.

"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 2017 reflects the successful implementation of our strategy and we are confident that the Group will continue to make further progress in the remainder of 2017."

The board also recommended a 9.1% increase of interim dividend to 0.60p with expected payment on 12 October.

Shares of Macfarlane were up 0.37% to 76.50p by 10:59 BST.