Business
Annual Results 2019
Annual Results 2019.
About this update from Macfarlane Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 2680E\n Macfarlane Group PLC\n 27 February 2020\n \n \n \n \n \n 27 February 2020\n \n \n \n \n \n ANNUAL RESULTS 2019\n \n \n \n \n \n \n \n \n \n Financial Highlights\n \n \n \n \n 2019\n \n \n \n \n 2018\n \n \n \n \n Increase\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Turnover\n \n \n \n \n £225.4m\n \n \n \n \n £217.3m\n \n \n \n \n +4%\n \n \n \n \n \n \n Profit before tax\n \n \n \n \n £12.0m\n \n \n \n \n £10.9m\n \n \n \n \n +10%\n \n \n \n \n \n \n Proposed full year dividend\n \n \n \n \n 2.45p\n \n \n \n \n 2.30p\n \n \n \n \n +7%\n \n \n \n \n \n \n Basic earnings per share\n \n \n \n \n 6.17p\n \n \n \n \n 5.55p\n \n \n \n \n +11%\n \n \n \n \n \n \n \n \n \n Macfarlane Group PLC achieved sales of £225.4m in 2019, (2018: £217.3m) a 4% increase on 2018, with 2019 profit before tax growing to £12.0m (2018: £10.9m), 10% ahead of 2018. This marks the tenth consecutive year of profit growth. The performance in 2019 was in line with market expectations and was achieved against a well-publicised backdrop of economic uncertainty resulting in weaker demand.\n \n \n Packaging Distribution increased sales by 4% in 2019 to £196.7m (2018: £189.8m). Sales revenue from existing customers was impacted by both weaker demand and sales price deflation during 2019 but this was offset by good growth in new business and the benefit of £5.7m from acquisitions. The 2019 acquisitions of Ecopac (U.K.) Limited (\"Ecopac\") and Leyland Packaging Company (Lancs) Limited (\"Leyland\") have both performed well since acquisition. Gross margin in Packaging Distribution at 31.1% showed improvement on the prior year (2018: 29.4%) and reflected effective management of input price movements. The growth in sales and gross margin, combined with good cost control, resulted in Packaging Distribution achieving an 11% increase in operating profit before exceptional items to £12.4m (2018: £11.2m) after the impact of IFRS 16 \"Leases\".\n \n \n Sales in Manufacturing Operations at £28.7m (2018: £27.5m) grew by 4% on the previous year. Gross margin increased to 39.8% in 2018 compared to 38.4% in 2018 and operating profit before exceptional items in 2019 increased to £1.2m (2018: £0.8m) after the impact of IFRS 16 \"Leases\".\...