Macfarlane Group PLC (LSE:MACF) shares dropped in Wednesday's early deals after the packaging firm issued a profit warning, downgrading profit forecasts.
The company lowered its full-year 2025 adjusted operating profit estimate by up to 25%, citing the impact following a fatal incident at its Pitreavie facility and a slower-than-expected recovery in its Distribution business.
The Pitreavie unit’s performance will be materially below previous expectations following a temporary shutdown of operations pending investigation, it noted.
Improvements in Distribution sales and margins have also been slower to emerge amid challenging market conditions, the company added, although it highlighted manufacturing operations excluding Pitreavie remained robust.
Net bank debt remains well within its £40 million facility.
“Following the tragic incident at Pitreavie our thoughts are with all those who have been impacted," chair Aleen Gulvanessian said.
"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.”
In London, Macfarlane shares were down 17% changing hands at 71.72p.