Consumer thirst for online shopping has created a favourable market for companies that supply packaging. Macfarlane (MACF), the Glasgow-based packaging distribution and manufacturing group, has been busy bulking up its own offering via acquisitions.
Three new businesses acquired during the year helped send group turnover and pre-tax profit up 6 per cent and 15 per cent, respectively. But the underlying business struggled. Organic revenue growth in the distribution division was just 1 per cent, while manufacturing revenue dropped by nearly a tenth. The latter division has struggled with volatile end markets that have changed customer ordering patterns.
That said, the outlook for Macfarlane is good. Broker Arden Partners expects earnings per share for the year to December 2017 to rise to 6p from 5.3p this year.
