Macfarlane Group cutting 50 jobs as it looks to rebuild after profit slide: revenues rise 11%
“I would be disappointed if we are not back on the acquisition trail at the back end of 2027” – Peter Atkinson, CEO
Macfarlane Group, the Glasgow-headquartered packaging provider that employs more than 1,200 people, has warned of a “challenging” year ahead after its annual operating profit halved.
Chief executive Peter Atkinson said the firm would be doubling down on costs through “targeted” savings. It is expected that the 720-strong headcount at the group’s distribution business will fall by about 50 during 2026, through redundancy and natural wastage. None of the job cuts will be north of the Border.
While group revenue rose by 11 per cent to £300.8 million in 2025, the firm’s latest full-year results show that operating profit slumped to £12.5m, down about 47 per cent on the £23.6m banked a year earlier. At the pre-tax level, profits slid 61 per cent to just over £8m.
The board is proposing to maintain the final dividend at 2.7p per share, amounting to a full-year pay-out of 3.66p, unchanged from the year before.
Chairperson Aleen Gulvanessian described 2025 as a “difficult year for the group”, despite the revenue and profit figures being in line with revised market expectations.
Operations were affected following a fatality at a corrugated manufacturing facility that Macfarlane acquired as part of its takeover of Cumbernauld-based Pitreavie Group in early 2025. The incident, which remains under investigation by health and safety officials, led to a temporary suspension of operations at that plant.
During the year, the group experienced “economic headwinds and uncertainty” creating a particularly competitive trading environment, as well as “material increases” in operating costs, including labour and property costs.
It said its manufacturing operations, excluding Pitreavie, had performed well. This was driven by a good contribution from the acquisition of Polyformes in July 2024, combined with stronger demand from customers, particularly in the defence, space and aerospace sectors.
Atkinson said: “It has been a very difficult year from a trading point of view amid the challenges of the macro and micro economic conditions. On top of that we have had the tragic incident at Pitreavie.”
He said new machinery was in the process of being installed at the Cumbernauld site and it was expected to be back to full capacity and capability by the beginning of the second quarter. The firm is said to have retained the loyalty of the customer base.
On potential acquisitions, Atkinson noted: “We have put acquisition activity on hold for the moment. But I would be disappointed if we are not back on the acquisition trail at the back end of 2027. We have a very good pipeline of opportunities.”
Macfarlane Group has been listed on the London Stock Exchange since 1973 and has been operating in the UK packaging industry for some 75 years. Headquartered in Glasgow, the firm employs 1,244 people at more than 40 sites, chiefly in the UK, as well as in Ireland, Germany and the Netherlands.
Akhil Patel, a research analyst at house brokerage Shore Capital, noted: “We continue to see Macfarlane as being at the forefront of helping its customers ultimately reduce their total packaging costs and reduce their environmental impact while protecting products.”
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