Macfarlane Group (MACF) Trading update summary

Trading performance and outlook

• Trading for 2026 to date is in line with market expectations, with full-year guidance unchanged.

• Q1 2026 group revenue was slightly ahead of Q1 2025, driven by organic growth in both Distribution and Manufacturing.

• Q1 2026 profit met expectations but was lower than Q1 2025 due to temporary outsourcing and restructuring.

• Performance is expected to improve in H2 2026, supported by new equipment at Pitreavie and cost control.

• Management is actively mitigating inflationary pressures from Middle East events.

Operational updates and investments

• £1.2m investment in Pitreavie equipment will be fully operational in Q2 2026, expected to restore profitability.

• Distribution business shows early signs of organic revenue growth; Manufacturing remains resilient.

• Net bank debt at 31 March 2026 was £16.7m, well within £40m facilities committed until November 2028.

• Share buyback programme extended to end of 2026, with £2.6m spent by 31 March 2026.

Strategic focus and market challenges

• Main focus for 2026 is profit recovery following a challenging 2025.

• Management is addressing market challenges from Middle East events to maintain progress.

• Investment in equipment and operational efficiency are key to restoring profitability.