19th Dec 2006 15:52
Macfarlane Group PLC19 December 2006 Macfarlane Group plc Trading Update In September 2006, the Board set out the actions being taken in the second halfof 2006. These actions are having a positive impact in the second half of theyear, but despite encouraging sales growth, margins, whilst improving, have notyet fully recovered to target in Distribution and demand continues to besluggish in our Manufacturing businesses in Labels and in USA. We have therefore continued our programme of investment in the second half toboost growth and profitability prospects for 2007 and beyond with a number ofrevenue investments in e-commerce capability, new business development andstrengthening of the management team. The costs of the actions taken have beenmore than covered by planned asset disposal gains and non-recurring creditswithin continuing operations. We are encouraged that trading in the final quarter of 2006 will be ahead of thesame period in 2005 and that Bloomfield Supplies Limited, acquired in October2006, has traded well since acquisition and this gives the Board encouragementto pursue further similar acquisitions in 2007. The Board expects that the full year's trading profits from continuingoperations, after taking account of the actions and non-recurring items referredto above, will be broadly in line with last year's figures. In addition tocontinuing operations, the gain on disposal of Hungary will be reported indiscontinued operations. The Board's declared intention in relation to dividendsremains unchanged. Further information: Archie S. Hunter Chairman 0141 333 9666Peter D. Atkinson Chief Executive 0141 333 9666John Love Finance Director 0141 333 9666 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Macfarlane Grp.