In his statement Macfarlane Group Chairman, Graeme Bissett described the first six months of the year as a difficult time in which the Group struggled to generate sales. This he attributed to “reduced demand, price deflation and the active management of lower-margin business.”
In spite of these difficult conditions the Group has gone on to achieve solid progress.
In packaging distribution, operating profit before exceptional items increased to £1.7m (2011: £1.3m). The Group’s manufacturing operations also grew operating profit before exceptional items to £0.3m (2011: £0.1m).
Overall the Group recorded a 65 per cent increased in profit before tax and exceptional items to £1.5m (2011: £0.9m).
Looking to the future, Graeme Bissett said, “Trading in July and August to date continues to be satisfactory and in line with our expectations. Demand conditions in the UK remain weak and it would be unwise to presume that general economic conditions will improve in the foreseeable future.
“However, our first half results indicate what can be achieved by talented and determined management and staff, working closely with our customers and other partners, and this gives confidence that we can deliver to our expectations for 2012.”
Graeme Bissett was appointed as Chairman in May 2012.