Slide 1: 2008 Interim Results
2008 Interim Results September 2008
Slide 2: Executive Summary 2008 Half-year Results Cash Flow
• Executive Summary • 2008 Half-year Results • Cash Flow • Business Review Packaging Distribution Manufacturing Operations • 2008 – H2 Priorities
Slide 3: Executive Summary
Executive Summary Pre-tax profit doubles to £1.0m from £0.5m Sales growth 12% across Group – 5% organic Both Manufacturing & Distribution progressing Debt £8.7m after acquisition of Online Packaging Distribution acquisition programme continuing Impairment loss on planned disposal of Plastics Interim
Slide 4: 2008 Half-year Results
£m H1 2008 H1 2007 H2 2007 Distribution 50.9. 44.3. 48.3. Manufacturing 13.5. 13.1. 14.0. Sales 64.4. 57.4. 62.3. Distribution 0.6. 0.3. 1.0. Manufacturing 0.8. 0.4. 1.4. Operating profit 1.4. 0.7. 2.4. Interest (0.4) (0.2) (0.4) Pre-tax profit 1.0. 0.5. 2.0. Tax (0.3) (0.2) 1.1. Post tax 0.7. 0.3.
Slide 5: Cash Flow
£m H1 2008 H1 2007 H2 2007 Profit + depreciation 2.0. 1.0. 4.5. Working capital (3.8) (2.9) 2.2. Operating inflows (1.8) (1.9) 6.7. Capex (0.6) (0.3) (0.7) Disposals 2.4. 0.0. 3.1. Acquisition (3.6) 0.0. (0.8) Dividends (1.1) (1.1) (1.1) Pension scheme (0.7) (0.7) (0.7) Movement in debt (5.4) (4.0)
Slide 6: Distribution
2008 – Distribution Distribution sales growth 15% versus 2007 Online Packaging acquired – progressing as planned Margins down by 0.8% to 29.5% due to lag on transfer of supplier increases to customers • Overheads up £1.2m, Online Packaging impact • Implementation of vehicle routing software progress
Slide 7: Distribution - Customer sector profile
Distribution - Customer sector profile Distribution Sales % Manufacturing 25% Unilever, Bosch, Hermann Miller Logistics 20% DHL Exel, Stobart-Irlam K&N Redistribution 20% Lyreco, Monks & Crane, Key Ind. Retail – related 10% O2, Boots and Dixon Relocations 10% Crown, Bishops Move Pickfords Internet r
Slide 8: New Business Team wins
wal = ”~ MACFARLANE = 48 ES) re "GROUP New Business Team wins TESCO BS sorts (>) PLAY.com More great news from WOOLWORTHS www.macfarlanegroup.net
Slide 9: Manufacturing Operations
2008 – Manufacturing Operations Labels growing through additional business with existing customers Internal efficiencies – benefit of 2007 capex Profit growth in H1 2008 aided by Euro benefit • Packaging Manufacturing – Good growth in partnership with Distribution • Material price / cost increases r
Slide 10: H2 Priorities in Distribution
2008 – H2 Priorities in Distribution Continue organic sales growth Focus on margin recovery as input costs rise Fully implement Paragon software Benefit from reduction in cost base early in Q3 Realise integration benefits of Online Packaging acquisition Gain benefits from RDC “Best Practice Programm
Slide 11: H2 Priorities in Manufacturing
2008 – H2 Priorities in Manufacturing Maintain sales momentum in Labels Develop ReSeal-It potential in US Drive further internal efficiencies Continue to develop Manufacturing partnership with Distribution Improve efficiencies to get full capex benefit Implement disposal of Plastics