Macfarlane Group has cashed in on the strong Euro and its newly-acquired distribution business as it doubled pre-tax profit in the first six months of the year.
In first-half results published this morning, the group reported pre-tax profit of £ 1 m, up from £ 0.5 m in the first half of 2007, and turnover up 12 percent to £ 64.4 m.
The improvements in profit came in both the packaging distribution and manufacturing divisions of the group.
In distribution, turnover was up 15 percent to £ 51 m, in part due to the acquisition of Online Packaging in January and in part thanks to organic growth. Pre-tax profit for the division stood at £ 0.6 m.
Archie Hunter, Macfarlane chairman, said that the increases showed the merit of targeting growth by both mean s[acquisition and organic], a strategy 'we will hold to in the future'.
Meanwhile, the higher-margin manufacturing division posted sales of £ 13.5 m, up 3.2 percent, and pre-tax profit of £ 0.9 m.
Hunter said that the profits reflected a strong performance in the group’s labels business, which had benefited from a strong Euro.
However, Hunter sounded a note of caution for the rest of the year. `It would be unrealistic to assume that we will be immune to the effects of a general economic downturn,` he said.
`But we have taken actions to ensure that our infrastructure is in line with a reduced level of demand and we are confident that we have the business strength and momentum to cope.`
