Likewise, overall revenues fell 8% from £141.6m to £129.6m. This was largely driven by an 11% revenue drop in the packaging distribution division, partially offset by recent acquisitions.

Macfarlane’s manufacturing operations revenue increased by 6%, also affected positively by contributions from acquisitions. However, adjusted operating profit fell slightly due to higher operating expenses. The acquisition of Polyformes is expected to boost earnings in the second half of the year.

The group has announced an interim dividend of 0.96p per share to be paid on 10 October 2024 to shareholders on the register as at 13 September 2024 (ex-dividend date 12 September 2024).

Aleen Gulvanessian, chair of Macfarlane Group PLC, said: “As outlined in our AGM trading update in May, the challenging market conditions experienced in the latter part of 2023 have continued in 2024.

“The management team has responded effectively through an improvement in new business growth, the management of price deflation and actions to control operating costs. In addition, the Group continues to execute its strategy, making two further high-quality acquisitions.

“The strength of our balance sheet and the cash generative nature of our business underpins our ongoing investment in actions to grow sales both organically and through acquisition and increase the interim dividend.

“Despite market headwinds, our operational and strategic performance is progressing, and the Group is well-positioned to benefit as the macroeconomic outlook improves.”