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Macfarlane Group has reported a reduction in full-year financial expectations. The trading update was overshadowed by the death of a worker at the Pitreavie packaging factory in Cumbernauld on 8 October. The group acquired Pitreavie for £18m in January. “The financial impact of this, combined with slower improvements in trading in distribution, are the key contributors to a reduction in the group’s estimated full year 2025 adjusted operating profit; now expected to be 20% to 25% below market expectations,“ read the statement. Pitreavie's full-year performance will be “materially below previous management expectations“ due to a temporary suspension of operations at the facility. “Any additional impact of the Pitreavie incident will only become clear when the authorities have completed their investigation“, the note added. A second half improvement in distribution sales and gross margin has been “slower than expected, with market conditions still challenging“. Manufacturing operations, excluding Pitreavie, continue to perform “robustly“, with a focus for the remainder of 2025 on stabilising the Pitreavie business and continuing to implement performance improvement actions in the distribution business. Net bank debt remains well within the group’s £40m facility. Macfarlane's chair Aleen Gulvanessian said: “Following the tragic incident at Pitreavie, our thoughts are with all those who have been impacted. “Since then, steps have been taken and will continue to be taken to provide such support and activities as are needed to ensure the wellbeing of our colleagues. “The incident has naturally had a significant impact on the Macfarlane business - the board supports the management team in its focus on stabilising the Pitreavie business and implementing actions to improve the performance of the distribution business.” Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
