Slide 1: 2025 Interim Results
Ce MC FARLANE GROUP 2025 Interim Results
Slide 2: Overview
Overview 2 • Executive Summary • H1 2025 Results • Business Review • Packaging Distribution • Manufacturing Operations • Pension Scheme • Capital Allocation • Conclusion
Slide 3: Our Purpose
Our Purpose 3 Macfarlane Group designs, manufactures & distributes protective packaging to customers across the UK/Europe to: …..ensure their ….optimise their …..protect their …..reduce their products are cost packaging to minimise products through the working capital and effectively packed, its env
Slide 4: Executive Summary
Executive Summary 4 H1 2025 H1 2024 Change £m £m £m Adjusted operating profit (AOP) * 9.8 12.5 (22%) Adjusted profit before tax (APBT) * 7.9 11.6 (32%) Profit before tax (PBT) 5.0 9.7 (49%) * Before charging amortisation and (crediting)/charging deferred contingent consideration adjustments. • Chall
Slide 5: Financial Summary – H1 2025
Financial Summary – H1 2025 5 Revenue AOP* APBT* Revenue and profit ▲ 13% 22% 32% Pre-tax ROCE Bank debt Pension surplus Returns and balance sheet 14% £15.2m £9.2m Adj. Diluted EPS* Dividend cover** Dividend per share EPS and dividend = 30% 2.4x 0.96p * Before charging amortisation, ch
Slide 6: Income Statement
Income Statement 6 H1 2025 H1 2024 £m £m Revenue 146.6 129.6 Gross Profit 55.4 [37.8%] 51.5 [39.7%] Operating expenses (45.6) (39.0) Adjusted operating profit 9.8 12.5 Amortisation and deferred contingent consideration adj. (2.8) (1.9) Operating profit 7.0 10.6 Interest (2.0) (0.9) Profit before tax
Slide 7: Cash Flow
Cash Flow 7 H1 2025 H1 2024 £m £m EBIT 7.0 10.6 DA 9.0 7.1 EBITDA 16.0 17.7 Working Capital 1.4 1.0 Interest (2.1) (1.1) Tax (3.2) (3.4) Other movements 0.3 0.4 Net cash inflow from operating activities 12.4 14.6 Acquisitions * (15.1) (4.1) Net capital expenditure (1.3) (1.4) Lease obligations (4.7)
Slide 8: Packaging Distribution
Packaging Distribution 8 • Marginally lower revenue versus H1 2024, with weak customer demand, £m H1 2025 H1 2024 particularly in retail sector Revenue 110.4 110.9 • New business revenue of £3.7m; 18% lower than H1 2024 Gross profit [margin] 39.3 [35.6%] 42.0 [37.9%] Operating expenses 34.5 32.7 • S
Slide 9: Packaging Distribution – Raw Material Price Movements
Packaging Distribution – Raw Material Price Movements 9 £2,100 £850 £825 £2,000 £800 £775 £1,900 £750 £725 £1,800 £700 £675 £1,700 £650 £625 £1,600 £600 £575 £1,500 £550 £1,400 £525 £500 £1,300 £475 £450 £1,200 £425 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2022 2023 2023 2023 2023 20
Slide 10: Packaging Distribution – Operating expenses
Packaging Distribution 10 Operating expenses H1 2025 H1 2024 % of % of £m £m Revenue Revenue Employee costs 19.5 17.6% 18.6 16.8% Transport (excluding employee costs) 3.6 3.2% 3.5 3.1% Property (incl. IFRS 16 adjustments) 6.2 5.6% 5.0 4.5% Utility costs 0.4 0.4% 0.5 0.5% IT 1.5 1.4% 1.4 1.3% Other 3
Slide 11: Packaging Distribution Acquisitions
Packaging Distribution Acquisitions 11 Acquisition Location Year Sales EBITDAx Placing price Lane Reading 2014 £3m 5-6x N/A Network Wolverhampton 2014 £9m 5-6x Sep-14 37.5p One Bingham 2015 £5m 5x N/A Colton Teesside 2016 £3m 5x N/A Edward McNeil Glasgow 2016 £3m 5x N/A Nelsons Leicester 2016 £9m 5-
Slide 12: Packaging Distribution Action Plan for 2025-2027
Packaging Distribution Action Plan for 2025-2027 12 Environmental New Business Growth Cost Inflation Sourcing Pricing Challenge Fully utilise benefits of Improve productivity to Strengthen partnerships Leverage skills/ Maintain close Significant Six offset impact of costs with key suppliers knowledg
Slide 13: Manufacturing Operations
Manufacturing Operations 13 • £17.9m increase in revenue due to: £m H1 2025 H1 2024 • good contribution from Polyformes acquired Revenue * 39.2 21.3 July 2024 and Pitreavie acquired in January 2025 of £17.8m Gross profit [margin] 16.1 [41.0%] 9.4 [44.3%] • organic growth of 0.3% Operating expenses 1
Slide 14: Manufacturing Operations Acquisitions
Manufacturing Operations Acquisitions 14 EBITDA Acquisition Location Year Sales Placing price x GWP Swindon/Salisbury 2021 £13.1m 5.5x N/A Suttons Chatteris 2023 £7.4m 5x N/A B&D Group Southampton 2023 £2.6m 5.5x N/A Polyformes Leighton Buzzard 2024 £9.3m 5x N/A Glasgow x 2, Pitreavie Aberdeen, 2025
Slide 15: Manufacturing Operations Action Plan for 2025-2027
Manufacturing Operations Action Plan for 2025-2027 15 New Business Cost Inflation In House Supply Environmental Challenge Targeted sector growth: Improve productivity to offset Strengthen in-house supply Support our customers in • Medical impact of cost inflation relationship with Distribution achie
Slide 16: Sustainability
Sustainability 16 Supporting our Customers Our Colleagues & the Doing Business the Right Way Reducing our Impact Community • Continued roll out of our • Continued membership of the • Converted the largest truck • 18% increase in customers World Class Sales Training UN Global Compact for in our deliv
Slide 17: UK and EU Sustainability Regulatory Environment
UK and EU Sustainability Regulatory Environment 17 Regulation anticipated Future Regulation Existing Regulation within 12 months (2-5 years) Plastic Packaging Tax EPR Phase 2 – Modulated EU Packaging and Fees based on Packaging Waste Extended Producer recyclability Regulations Responsibility (EPR) E
Slide 18: Pension Scheme – working towards buy-in
Pension Scheme – working towards buy-in 18 £m H1 H1 H1 H1 2025 2024 2024 Investments (£m) 2025 2024 2024 Opening surplus 9.6 9.9 9.9 Multi-asset Diversified Fund 2.4 4.9 2.9 Securitised Credit Funds 16.6 17.4 16.9 Administration costs/interest income 0.2 - 0.1 Multi-asset Credit Funds 10.3 10.0 10.2
Slide 19: Capital Allocation
Capital Allocation 19 Priorities Approach H1 2025 Outcomes Working capital managed against Management of working capital and Working capital reduction £1.4m benchmark number of days. Capital 1 investment in capital expenditure to expenditure prioritised (i) essential/ support organic growth Net capi
Slide 20: Conclusions
Conclusions 20 • Economic headwinds in H1 2025 resulting in weak demand, customer uncertainty and rising operating costs • No expectation of market improvement in H2 2025 but benefit of seasonal uplift. • Performance improvement in H2 2025 through management action……… • Conversion of the strong new
Slide 21: Macfarlane Business Case
Macfarlane Business Case 21 Strongly focused A simple, Good market A track record operating flexible and positions with of performance companies with resilient growth and clear plans differentiated business model potential to sustain growth propositions