- Macfarlane provides essential protective packaging solutions, and its bespoke designs offer a competitive edge over generalist distributors
- The shift to e-commerce and demand for sustainable packaging should drive long-term growth
IC TIP:
Buy
at
110p
Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
Structural growth drivers
Fragmented markets
Analyst upgrades
Fund manager pick
Bear points
Low margins
Cyclical exposure
Having started out life as a commercial stationery company back in 1949, Macfarlane (MACF) has grown to become the UK’s leading protective packaging business. Largely operating in the business-to-business (B2B) market, the group serves a variety of customers – everyone from third-party logistics providers to aerospace and defence companies. While the UK currently accounts for the vast majority of revenue, Macfarlane also has a small but growing footprint in Continental Europe as it follows its customers into the region.