MACFARLANE GROUP PLC - Interim results for the six months ended 30 June 2026

MacFarlane Group’s H1 2026 investor update highlights progress on its profit recovery programme despite challenging UK market conditions, Middle East disruption and increasing environmental regulation. Group revenue increased 2% year on year, with £2.3m of growth across distribution and manufacturing excluding the Petriviti business. Distribution delivered sales and profit growth, stable gross margins and a strong new business performance, with new business up almost 40% year on year. Specialist manufacturing also remained resilient, supported by exposure to defence, aerospace, electronics and space markets. Petriviti returned to profitability in Q2 following the commissioning of its replacement corrugated machine, marking an important step in its recovery. The Group maintained tight cost control while managing significant polymer input price inflation, with pricing actions helping protect margins. Net debt remained relatively low at £17.9m, while the Group maintained its dividend and announced a new £6m share buyback programme. MacFarlane is targeting a return to 7–8% net margins in distribution through a combination of industrial market growth, pricing discipline, cost reduction and improved site performance, while Petriviti is targeting £2m of operating profit in the medium term. The Group continues to invest in sustainability, including solar energy and electric vehicles, while adapting to the EU’s Packaging and Packaging Waste Regulation. Management remains focused on profit recovery, with acquisitions currently on hold as it prioritises operational performance and expects to return to acquisition activity from early 2028.