Business

Macfarlane Group hopes to expand its packaging distribution business, which already accounts for more than three-fifths of its revenue.

Although the Glasgow-based group is the market leader in packaging distribution, chairman Archie Hunter said its share of just over 10% “demonstrates the potential for further growth”.

Macfarlane’s distribution revenues increased by 9.3% to £80.9m in 2006, while total manufacturing sales fell 7% to £49.2m, mainly due to the group’s labelling and North American businesses.

Rising raw material and energy costs conspired to reduce Macfarlane’s pre-tax profits by 35% to £2.36m.
Macfarlane introduced a programme to source products more cheaply, and is encouraging customers to use its online Packaging2U service.