Latest news with #Glasgow-headquartered
Scotsman
10-07-2025
- Business
- Scotsman
Macfarlane Group profit shock sees shares in Glasgow packaging giant fall 15%
'Management is focused on implementing an action plan to recover cost increases and execute against our strong pipeline of new business' – Aleen Gulvanessian, chair Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Macfarlane Group, the Glasgow-headquartered packaging provider, saw its shares stumble after warning investors of a double-digit slide in profits. Pointing to 'a year of challenge and economic uncertainty' the firm said it now expected its full-year adjusted operating profit for 2025 to be about 10 per cent below last year. Advertisement Hide Ad Advertisement Hide Ad Ahead of the release of results in late August, Macfarlane noted that its core distribution business was experiencing weaker-than-expected demand, delays in new business decision making, pressure on gross margin due to the competitive environment, rising input prices and slower-than-anticipated recovery of labour and property-related cost increases. Headquartered in Glasgow, Macfarlane Group employs some 1,000 people at 43 sites, principally in the UK, as well as in Ireland, Germany and the Netherlands. It said its manufacturing operation was 'performing robustly' with good momentum with aerospace and defence related customers and the benefit of its Polyformes acquisition, marginally offset by the slowdown in those sectors where customers are being impacted by uncertainty over US tariffs. Bosses at the group, which employs more than 1,000 people at 43 sites, said the focus for the remainder of 2025 would be the recovery of cost increases, the implementation of additional cost-saving actions and ensuring that the firm converts its 'strong new business pipeline'. Net bank debt remains 'well within' the company's £40 million facility, while a recently launched share buyback programme will continue as planned. Advertisement Hide Ad Advertisement Hide Ad Shares in the group, which has been listed on London's main market since 1973, were down 15 per cent in Thursday morning trading. Analysts at house broker Shore Capital noted: 'We expect recovery driven by management actions and market improvement in due course.' Chair Aleen Gulvanessian said: 'We highlighted in our AGM statement that market conditions in 2025 were challenging. It is disappointing that the momentum increase we experienced early in the second quarter of 2025 has not been maintained and as a result will impact our full-year performance. 'Management is focused on implementing an action plan to recover cost increases and execute against our strong pipeline of new business. The board remains confident that our strengthened sales team, differentiated customer proposition and proven executional skills mean that the prospects for the group remain positive. 'We will provide a further update along with the announcement of our interim results on August 28.' Advertisement Hide Ad Advertisement Hide Ad In February, Macfarlane reported robust annual profits and flagged a 'strong pipeline of opportunities' just weeks after sealing a milestone £18m takeover. However, the firm also warned of 'another challenging year' as it juggles with increased employment costs resulting from the autumn Budget and the introduction of new industry regulations. The results for 2024 revealed that group profit before tax had risen by 3 per cent to £20.9m, against £20.3m the year before. That came despite group revenue falling by 4 per cent to just over £270.4m. Adjusted operating profit dipped 1 per cent to £27.4m.
Scotsman
10-07-2025
- Business
- Scotsman
Macfarlane Group profit shock hits shares in Glasgow packaging giant
'Management is focused on implementing an action plan to recover cost increases and execute against our strong pipeline of new business' – Aleen Gulvanessian, chair Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Macfarlane Group, the Glasgow-headquartered packaging provider, saw its shares stumble after warning investors of a double-digit slide in profits. Pointing to 'a year of challenge and economic uncertainty' the firm said it now expected its full-year adjusted operating profit for 2025 to be about 10 per cent below last year. Advertisement Hide Ad Advertisement Hide Ad Ahead of the release of results in late August, Macfarlane noted that its core distribution business was experiencing weaker-than-expected demand, delays in new business decision making, pressure on gross margin due to the competitive environment, rising input prices and slower-than-anticipated recovery of labour and property-related cost increases. Headquartered in Glasgow, Macfarlane Group employs some 1,000 people at 43 sites, principally in the UK, as well as in Ireland, Germany and the Netherlands. It said its manufacturing operation was 'performing robustly' with good momentum with aerospace and defence related customers and the benefit of its Polyformes acquisition, marginally offset by the slowdown in those sectors where customers are being impacted by uncertainty over US tariffs. Bosses at the group, which employs more than 1,000 people at 43 sites, said the focus for the remainder of 2025 would be the recovery of cost increases, the implementation of additional cost-saving actions and ensuring that the firm converts its 'strong new business pipeline'. Net bank debt remains 'well within' the company's £40 million facility, while a recently launched share buyback programme will continue as planned. Advertisement Hide Ad Advertisement Hide Ad Shares in the group, which has been listed on London's main market since 1973, were down 5 per cent in early Thursday trading. Analysts at house broker Shore Capital noted: 'We expect recovery driven by management actions and market improvement in due course.' Chair Aleen Gulvanessian said: 'We highlighted in our AGM statement that market conditions in 2025 were challenging. It is disappointing that the momentum increase we experienced early in the second quarter of 2025 has not been maintained and as a result will impact our full-year performance. 'Management is focused on implementing an action plan to recover cost increases and execute against our strong pipeline of new business. The board remains confident that our strengthened sales team, differentiated customer proposition and proven executional skills mean that the prospects for the group remain positive. 'We will provide a further update along with the announcement of our interim results on August 28.' Advertisement Hide Ad Advertisement Hide Ad In February, Macfarlane reported robust annual profits and flagged a 'strong pipeline of opportunities' just weeks after sealing a milestone £18m takeover. However, the firm also warned of 'another challenging year' as it juggles with increased employment costs resulting from the autumn Budget and the introduction of new industry regulations. The results for 2024 revealed that group profit before tax had risen by 3 per cent to £20.9m, against £20.3m the year before. That came despite group revenue falling by 4 per cent to just over £270.4m. Adjusted operating profit dipped 1 per cent to £27.4m.
The Herald Scotland
06-07-2025
- Business
- The Herald Scotland
Billionaire drinks family acquires UK's best-selling whisky
North Lanarkshire-based William Grant & Sons celebrated the double acquisition of The Famous Grouse and Naked Malt brands from The 1887 Company, part of Glasgow-headquartered Edrington. The Famous Grouse is a best-seller. (Image: Colin Mearns) The buyer said: 'This historic moment for WG&S demonstrates the company's commitment to the global Scotch whisky category and confidence in the future of the wider spirits industry.' The Famous Grouse and Naked Malt join WG&S' portfolio alongside Glenfiddich, The Balvenie, Hendrick's Gin and Monkey Shoulder. The firm added: 'The Famous Grouse is Scotland's best-selling whisky and one of the top-selling Scotch whisky brands worldwide, renowned for its quality and heritage, while Naked Malt has garnered a loyal following among whisky enthusiasts and has significant growth potential within the blended malt segment.' Read the full story here Scottish family business brings in majority shareholder Hamish Marshall and Svenja MacMillan, who has joined the long-established business as a director. (Image: James A Marshall/Nevis Capital) A historic Glasgow family business is targeting growth in the UK and elsewhere in Europe on the back of a Scottish investor taking a majority stake.
