Macfarlane Group PLC

Macfarlane Group reported a 9% decline in adjusted profit before tax for the first half of 2026, despite a 2% rise in revenue, as the protective-packaging company faced weak market conditions, higher input costs, and disruption at its Pitreavie manufacturing operation. The company maintained its interim dividend at £0.96 and plans to launch a new £6 million buyback in October, prioritizing shareholder returns over acquisitions. Packaging Distribution delivered sales and profit growth, supported by price recovery and a nearly 40% increase in new business, while Pitreavie returned to quarterly profitability after its replacement machine became operational. Management expects stronger sales in the second half, though margins may soften, and the company is focusing on restoring margins, reducing costs, and strengthening its balance sheet.