Macfarlane Group – this Thursday’s Interim Results could show positivity for the second-half, with even brighter prospects for 2027

Mark Watson-Mitchell - 24.08.2026

After the recently announced de-risking of its pension scheme, investors are getting more optimistic about the prospects for the Macfarlane Group (LON:MACF).

We look forward to the company declaring positive comments when the leading protective packaging solutions group announces its Interim Results this coming Thursday, 27^th August.

Capitalised at some £112m, the business this year is estimated to push sales up to £308m, with £16.2m adjusted pre-tax profits, generating 7.7p per share in earnings, more than double covering a 3.7p dividend for the year to end-December.

In late-April this year its shares were down to 59.80p, since when they have topped out at 75.80p, that was earlier this month.

Ahead of this week’s Interims, they are trading at around the 72.50p level – which looks inexpensive on only 9.4 times price-to-earnings.

The Business

Headquartered in Glasgow, the Macfarlane Group employs over 1,200 people at 42 sites, principally in the UK, as well as in Ireland, Germany and the Netherlands.

The company, which has been listed since 1973, has over 70 years of experience in the UK packaging industry.

Through its two divisions, it services a broad range of business customers, supplying them with high-quality protective packaging products which help customers reduce supply chain costs, improve operational efficiencies and sustainability and enhance their brand presentation.

The divisions are:

Packaging Distribution, representing some 87% of group sales - Macfarlane Packaging Distribution is the leading UK distributor of a comprehensive range of protective packaging products; and

Manufacturing Operations, 13% of group sales - Macfarlane Design and Manufacture is a UK market leader in the design and production of protective packaging for high value and fragile products.

The business supplies more than 20,000 customers, principally in the UK, Ireland and Europe.

In partnership with 2,000 suppliers, Macfarlane Group distributes and manufactures 600,000+ lines, supplying to a wide range of sectors, including: retail e-commerce; consumer goods; food; logistics; mail order; electronics; defence; medical; automotive; and aerospace.

AGM Trading Update

On Tuesday, 12^th May, the group provided a Trading Update ahead of its Annual General Meeting, confirming that its full-year expectations remain unchanged.

First quarter 2026 revenues were slightly ahead of the prior year with organic growth in both Distribution and Manufacturing, though profit was lower due to temporary outsourcing and restructuring.

A £1.2m investment in new equipment at Pitreavie is expected to be fully operational in Q2 2026, with performance anticipated to improve in the second half of the year.

The company declared that it was managing inflationary pressures and it reported net bank debt of £16.7m at end-March, well within its £40m facilities.

The £4.0m share buyback programme, with £2.6m spent to that date, is intended to be extended through the end of 2026.

Management Comment

The group’s Chair, Aleen Gulvanessian stated that:

"Following a difficult year in 2025, our main focus for 2026 has been to commence the process of profit recovery. 

It is encouraging therefore that the Group's performance in the first quarter of 2026 has been in line with expectations.

We welcome the early signs of organic revenue growth in our Distribution business, the resilience in our Manufacturing businesses and the investment in Pitreavie which will enable that business to restore profitability in 2026.

The impact of events in the Middle East will present market challenges not anticipated at the start of the year. 

However, the management team is taking appropriate actions to address these challenges and achieve progress in 2026."

The Equity

There are some 155.4m share in issue.

The larger holders include Aberforth Partners LLP (13.76%), Hauser & Friends AG (7.25%), Raymond James Wealth Management Ltd. (Investment Management) (6.35%), BlackRock Investment Management (UK) Ltd. (4.57%), Jupiter Asset Management Ltd. (4.56%), BGF Investment Management Ltd. (4.49%), Schroder Investment Management Ltd. (4.02%), Still Lake Capital LLC (3.49%), Canaccord Genuity Asset Management Ltd. (3.47%), and Bankinter Gestión de Activos SA SGIIC (2.44%). 

Broker’s View

Analyst Akhil Patel, at Shore Capital, is positive about the group.

His current year estimates to end-December 2026, are for sales to edge gently ahead to £308.0m (£300.8m), with adjusted pre-tax profits of £16.2m (£15.6m), nudging earnings a fraction higher at 7.7p (7.6p), while maintaining the 3.7p per share dividend.

For the coming 2027 year, Patel goes for £318.0m revenues, £17.5m profits, 8.3p earnings and that steady 3.7p dividend per share.

The year to end-December 2028 could show a turnover of £327.6m, with £18.8m profits, 8.9p earnings and still that 3.7p dividend.

My View

You will not get rich overnight buying this group’s shares, however if you are looking to make a purchase of a ‘recovery situation stock’ then I do not think that Macfarlane Group will disappoint its holders over the next few years.

The shares, now 72.50p, could react well to positive corporate news on its operational recovery and margin improvement.

Getting it wrapped up and ready to go