Trading Update

Since the announcement of the Group's H1 2025 Results there has been a tragic incident at Pitreavie, acquired by the Group in January 2025.

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 ("FY") 2025 Adjusted Operating Profit1, now expected to be 20% to 25% below market expectations2.

• The Pitreavie FY 2025 performance will be materially below previous management expectations. This is as a consequence of the recent fatal incident at one of the Pitreavie sites, which has resulted in a temporary suspension of operations at that facility. Any additional impact of the Pitreavie incident will only become clear when the authorities have completed their investigation.
• The H2 2025 improvement in Distribution sales and gross margin has been slower than expected, with market conditions still challenging.
• Manufacturing Operations, excluding Pitreavie, continues to perform robustly.
• The focus for the remainder of 2025 is 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.

Commenting on today's announcement Aleen Gulvanessian, Chair of the Group, 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."

1 Operating profit before amortisation and deferred contingent consideration adjustments.

2 FY AOP market expectations £24.7m.