Profit rise for packaging company

The Macfarlane Group operates from 22 locations in the UK and abroad

The packaging firm, Macfarlane Group, has reported a 60% increase in pre-tax profits in the first half of this year.

The Glasgow-based company announced pre-tax profits of £0.72m compared with £0.45m last year.

Macfarlane said it had managed to reduced its pensions deficit but it still stood at about £20m and had further plans to cut costs.

The group makes and distributes labels and packaging, and employs 700 people at 22 locations mostly in the UK.

Turnover at the company rose by 9% in the first half of the year to £64.1m and this was mostly down to passing on price increases of raw materials.

However in a statement to the stock exchange, Macfarlane said not all costs could be passed on immediately and that had an impact on gross margins.

Earlier this year the company announced plans to cut its pensions deficit and said it would freeze future rises in pensionable salary.

Latest figures show the pension deficit has been reduced from £20.4m to £20m and the company said "further measures to reduce the deficit are planned."

Macfarlane Group was founded in 1949 by Lord Macfarlane of Bearsden.