MIDAS SHARE TIPS UPDATE: How packaging specialist Macfarlane's stocks have tripled in price 


MIDAS SHARE TIPS UPDATE: How packaging specialist Macfarlane’s stocks have tripled in price

Joanne Hart, Financial Mail on Sunday

Packaging specialist Macfarlane is a Scottish success story. 

Based in Glasgow, the firm designs and distributes highly efficient, environmentally friendly protective packaging for 17,000 businesses across the UK and overseas.

Midas first recommended the shares in 2012, when they were 27p. Today, the stock is 92p and chief executive Peter Atkinson believes there is plenty more growth to come.

Macfarlane is based in Glasgow and the firm designs and distributes highly efficient, environmentally friendly protective packaging for 17,000 businesses (stock image)

Macfarlane is based in Glasgow and the firm designs and distributes highly efficient, environmentally friendly protective packaging for 17,000 businesses (stock image)

Macfarlane is based in Glasgow and the firm designs and distributes highly efficient, environmentally friendly protective packaging for 17,000 businesses (stock image)

The company has been on a roll, increasing profits by about 15 per cent annually for nine years. Last year was even better, as Atkinson revealed on Thursday last week. 

Underlying profits rose 20 per cent to £11.2 million and the firm unveiled a 10 per cent rise in the dividend to 2.3p, testimony to management confidence in the future.

A fifth of Macfarlane’s sales come from retail and e-commerce firms, including Burberry and Urban Outfitters.

But the group makes most of its money from industrial customers, in sectors such as aerospace, defence and medical supplies. 

The vast majority of Macfarlane’s suppliers and customers are in the UK so it is relatively protected against Brexit-related risk. But several businesses have asked it to supply them in Europe too, so Atkinson is expanding his presence there.

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In recent years Macfarlane has grown both organically and by acquisition. This trend is likely to continue.

MIDAS VERDICT: Atkinson and his board are upbeat, the group has made good progress and the share price has tripled in seven years. Cautious investors may want to reduce their holding in case of a UK downturn. More ebullient shareholders should stick with the business.  

Traded on: Main market Ticker: MACF Contact: macfarlanegroup.com or 0141 333 9666





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