Trading Update

Macfarlane Group PLC is updating the market today in advance of its 2025 interim results due to be released on 28 August 2025.

• In a year of challenge and economic uncertainty, we currently expect full year 2025 Adjusted Operating Profit1 to be approximately 10% below 2024.
• Distribution is experiencing weaker than expected demand, delays in new business decision making, pressure on gross margin due to the competitive environment, rising input prices and slower than anticipated recovery of labour and property-related cost increases.
• Manufacturing Operations is performing robustly with good momentum with our aerospace and defence related customers and the benefit of the Polyformes acquisition, marginally offset by the slowdown in those sectors where customers are being impacted by uncertainty over US tariffs.
• We expect the Pitreavie business, acquired in January, to benefit from the normal seasonal uplift in demand in H2 2025, together with additional sales from in-house supply to Macfarlane Distribution.
• The focus for the remainder of 2025 is the recovery of cost increases, the implementation of additional cost saving actions and ensuring we convert the strong new business pipeline.
• Net bank debt remains well within the Group's £40m facility.
• The recently launched share buyback programme will continue as planned.

Commenting on today's announcement Aleen Gulvanessian, Chair of the Group, said:

"We highlighted in our AGM statement that market conditions in 2025 were challenging. It is disappointing that the momentum increase we experienced early in Q2 2025 has not been maintained and as a result will impact our full year performance.

Management is focused on implementing an action plan to recover cost increases and execute against our strong pipeline of new business.

The Board remains confident that our strengthened sales team, differentiated customer proposition and proven executional skills mean that the prospects for the Group remain positive.

​We will provide a further update along with the announcement of our interim results on 28 August 2025."

1Operating profit before amortisation and deferred contingent consideration adjustments