Slide 1: 2026 Interim Results
Ce MC FARLANE GROUP 2026 Interim Results
Slide 2: Overview
Overview 2 • Executive Summary • H1 2026 Results/Cash Flow • Capital Allocation • Business Review • Packaging Distribution • Manufacturing Operations • Pitreavie • Sustainability Update • Pension Scheme • Conclusions
Slide 3: Macfarlane Group designs, manufactures & distributes protective packaging
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 environmental s
Slide 4: Executive Summary
Executive Summary 4 H1 2026 H1 2025 Change £m £m £m Revenue 148.9 146.6 2% Adjusted operating profit (AOP) * 9.5 9.8 (3%) Adjusted profit before tax (APBT) * 7.2 7.9 (9%) * Before charging/crediting amortisation and deferred contingent consideration adjustments. • Profit Recovery Plan underway : • P
Slide 5: Financial Summary – H1 2026
Financial Summary – H1 2026 5 Revenue AOP * APBT * Revenue and profit ▲ 2% 3% 9% Bank net debt Net debt/EBITDA ** Pension surplus Balance sheet ▲ ▲ £17.9m 0.9x £5.3m Adjusted diluted EPS Dividend cover *** Dividend per share EPS and dividend = 9% 3.6x 0.96p * Before charging/crediting amor
Slide 6: Income Statement
Income Statement 6 H1 2026 H1 2025 £m £m Revenue 148.9 146.6 Gross Profit 56.2 [37.7%] 55.4 [37.8%] Operating expenses (46.7) (45.6) Adjusted operating profit 9.5 9.8 Adjustments * (2.4) (2.8) Operating profit 7.1 7.0 Interest (2.4) (2.0) Profit before tax 4.7 5.0 Adjusted Diluted EPS 3.45p 3.78p Di
Slide 7: Income Statement
Income Statement 7 Deferred Alternative Contingent Performance Consideration Statutory Measures Amortisation Adjustments Tax Measures £m £m £m £m £m Six months to 30 June 2026 AOP 9.5 (2.4) - - 7.1 Operating profit APBT 7.2 (2.4) (0.1) - 4.7 Profit before tax Adjusted diluted EPS 3.45p (1.56)p (0.05
Slide 8: Cash Flow
Cash Flow H1 2026 H1 2025 8 £m £m EBIT 7.1 7.0 DA 9.2 9.0 EBITDA 16.3 16.0 Working Capital (2.2) 1.4 Interest (2.5) (2.1) Tax (1.3) (3.2) Pension administration costs/past service cost 0.1 0.1 Other movements (0.1) 0.2 Net cash inflow from operating activities 10.3 12.4 Acquisitions * - (15.1) Net c
Slide 9: Capital Allocation
Capital Allocation 9 Priorities Approach Allocation Management of investment in capital Capital expenditure prioritised (i) 1 expenditure to support organic essential/ replacement (ii) by c.£3.5m to £5.0m per annum growth investment returns Maintain current dividend levels Based on business performa
Slide 10: Packaging Distribution
Packaging Distribution 10 • Increase in revenue versus H1 2026 • Improved new business revenue of £5.1m; £m H1 2026 H1 2025 38% increase on H1 2025 • Successfully recovering higher input costs Revenue 111.7 110.4 • Stable gross margin despite inflationary Gross margin 40.2 [36.0%] 39.3 [35.6%] impac
Slide 11: Packaging Distribution – Margin Evolution
Packaging Distribution – Margin Evolution 11 £900 Covid Period Inflation Period 40.0% £800 35.0% £700 30.0% £600 25.0% £500 20.0% £400 15.0% £300 10.0% £200 £100 5.0% £0 0.0% H1 H2 H1 H2 H1 H1 H1 H2 H1 H2 H1 H2 H1 H2 H1 2019 2019 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024 2025 2025 2026 Paper
Slide 12: Packaging Distribution – Operating expenses
Packaging Distribution 12 Operating expenses H1 2026 H1 2025 % of % of £m £m Revenue Revenue Employee costs (excl National Insurance) 18.4 16.5% 17.8 16.0% National Insurance 2.0 1.8% 1.7 1.6% Property (incl. IFRS 16 adjustments) 5.5 5.0% 6.2 5.6% Transport (excluding employee costs) 3.7 3.3% 3.5 3.
Slide 13: Packaging Distribution Profit Recovery Plan
Packaging Distribution Profit Recovery Plan 13 KPI H1 Progress Medium Term Commentary Target Organic Growth 1.2% 2.0%-3.0% • • Sales focus on more resilient and higher margin industrial markets New Strategic Account Sales Programme • Realise benefits from relaunched web-based solutions offering • Le
Slide 14: Manufacturing Operations, excluding Pitreavie
Manufacturing Operations, excluding Pitreavie 14 • £1.4m increase in revenue £m H1 2026 H1 2025 • Stronger demand from existing customers in defence, aerospace and electronics sectors Revenue * 28.0 26.7 • Slight decline in gross margin due to delay in Gross margin 12.1 [43.2%] 11.8 [44.2%] recovery
Slide 15: Manufacturing Operations - Pitreavie
Manufacturing Operations- Pitreavie 15 £m H1 2026 H1 2025 • Return to adjusted operating profit in Q2 2026 Revenue * 12.6 12.5 • Adjusted H1 operating loss due to restricted operating capacity Gross margin 3.9 [30.7%] 4.3 [34.3%] • Loss minimised by good retention of customers, Operating expenses 4.
Slide 16: Pitreavie Profit Recovery Plan
Pitreavie Profit Recovery Plan 16 KPI H1 Progress Medium Term Commentary Target Corrugate Throughput 79k per day 100k per day • Installation of new corrugate equipment in Q1 2026 increases capacity of the corrugate operation in the current shift system (square metres) Revenue Growth 2.2% 5.0% • Targ
Slide 17: Sustainability Update
17 Reducing our Impact Supporting our Our Colleagues & the Doing Business the Customers Community Right Way • 36% reduction in absolute • 270 YTD customer • Progressed Health and carbon emissions since engagements with our Safety improvement • Retained London Stock 2019 Innovation Labs programme Exc
Slide 18: UK and EU Sustainability Regulatory Environment
UK and EU Sustainability Regulatory Environment 18 New Regulation Future Regulation Existing Regulation within 2026 2027 and beyond Plastic Packaging Tax EU Packaging and International (April 2022) Packaging Waste Sustainability Reporting Regulations Standards (2027) Extended Producer (August 2026)
Slide 19: Pension Scheme – Buy-in Completed
Pension Scheme – Buy-in Completed 19 £m H1 H1 H1 H1 2026 2025 2025 Investments (£m) 2026 2025 2025 Opening surplus 6.0 9.6 9.6 Multi-asset Diversified Fund - 2.4 - Securitised Credit Funds - 16.6 16.2 Administration costs/interest income - 0.2 0.3 Multi-asset Credit Funds - 10.3 3.0 Past service cos
Slide 20: Conclusions
Conclusions 20 Market Conditions - weak UK economy, impact of Middle East and increasing Environmental Regulation H1 Progress: • Middle East impact largely being offset • Packaging Distribution performance improvement • Pitreavie Q2 return to profitability • Manufacturing Operations performance stab