Macfarlane Group has warned that full-year profits will be up to 25% lower as a result of a tragic incident at its Pitreavie subsidiary, acquired by the group in January.
A fatality at the plant led to a temporary suspension of operations at the facility.
The full impact of the incident will only become clear when the authorities have completed their investigation, said the packaging group.
Together with slower improvements in trading in distribution, it will mean a hit to adjusted operating profit, now expected to be 20% to 25% below market expectations.
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,” said the Glasgow-based company in a trading update.
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.”
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