27th Nov 2025 12:46
(Alliance News) - Macfarlane Group PLC on Thursday said operations at its Pitreavie business are recovering as it reiterated recently reduced profit guidance.
The Glasgow-based packaging and labelling supplier expects results for 2025 to be in line with market expectations for full-year adjusted operating profit, which it put at GBP19.1 million.
Back in October, Macfarlane lowered its outlook warning full-year adjusted operating profit will be 20% to 25% below market expectations, which at the time were GBP24.7 million.
Shares in Macfarlane rose 7.0% to 70.60 pence each in London on Thursday. They have fallen 32% in the last 12 months.
Macfarlane said operations at the Pitreavie business are recovering after a fatal incident there in October.
"We have committed GBP1.2 million of investment in new equipment to restore the business to full operational capability by the end of Q1 2026, helping to accelerate the process of recovery and creating capacity for growth," it added.
Chair Aleen Gulvanessian said: "The management team remains focused on stabilising the Pitreavie business and implementing actions to improve the performance of the Distribution business."
In addition, Macfarlane said it is "positioning" the pension scheme for a possible buy-in to reduce future risk and minimise any further requirement for cash contributions.
As part of this process a non-recurring accounting charge, of GBP2 million to GBP3 million, will be accrued to recognise an increase in the expected cost of historic equalisation of pensions.
By Jeremy Cutler, Alliance News reporter
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