News

Macfarlane Group's share price rose 7% to 30p yesterday (20 December) after the firm said it was seeking further "value-enhancing acquisitions" in its packaging distribution business.

The Glasgow-based packaging manufacturer and distributor said in a trading update that the "strong performance" of the business in the first six months of 2007 had continued into the second half.

Full-year results from continuing operations would be in line with expectations and profits "significantly ahead" of 2006, the firm said.

Chairman Archie Hunter has focused on growing the group's packaging distribution business in the past couple of years, and sold "non-strategic" manufacturing operations in the US and Mexico to Specialized Packaging Group LP for £3.8m in cash in October.

Hunter said Macfarlane had a 10% market-leading share of the UK packaging distribution sector, which now accounts for more than 60% of total sales.

The company has agreed to sell property at Kirkintilloch, near Glasgow, for a total cash sum of £2.3m after attributable expenses.

The disposal will produce a realised profit of £600,000 in the current financial year to 31 December.