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Macfarlane Group PLC (MACF)

Macfarlane Group PLC

AGM Statement
Macfarlane Group PLC
14 May 2002

Macfarlane Group PLC


At the Annual General Meeting, later today John Ward, Chairman, of Macfarlane
Group PLC will make the following comments:

'In 2002 our businesses are experiencing mixed trading conditions with no clear
signs of a sustainable recovery.

The packaging manufacturing business has benefited from the actions to bring its
cost base under control and is now showing signs of modest growth from new
business. The site near Budapest continues to progress and we have opportunities
to expand our offering to other customers in Hungary. The business based in
California has returned to profit in the first quarter of 2002.

Our labels business supplying the beauty-care, toiletries and food retail
channels has made a solid start to 2002, with further opportunities and new
market sectors being targeted to broaden the sales base. The injection moulding
business in Ireland supplying the pharmaceutical and food industries has also
started the year positively.

During 2001 our packaging distribution business began an extensive programme to
eliminate duplication in sites and activities and to improve service to
customers and this programme will continue throughout 2002. As I stated earlier,
this is a bold and very challenging realignment of our business, particularly in
highly competitive times. Whilst there are encouraging signs in areas where the
transition is nearing completion that the anticipated benefits will be realised,
the benefits from the programme are taking longer to achieve and causing greater
disruption than originally estimated.

As a consequence, trading results in 2002 from our packaging distribution
business will be well below our earlier expectations but should be offset by the
levels of profits being generated during this transition as surplus properties
are sold. As a result your Board currently envisages that the reduced profits
expected from trading in packaging distribution will be balanced by increased
gains from asset sales, enabling Group profits to be broadly in line with the
Board's expectation for the year to 31 December 2002.

The Group remains in a strong position due to the cash generated from these
asset sales which will further strengthen our balance sheet, enabling us to take
advantage of acquisition opportunities. Your directors remain confident that the
significant change taking place in our business will on completion deliver
growth and a strong market position and this is supported by early indications
from sites nearing completion of the transition. Your Board considers that this
is the correct strategy for Macfarlane Group and whilst it will take longer to
deliver the full benefits, the Board remains fully committed to the completion
of the transition and the delivery of these benefits.'


Further information:-

John M. Ward                     Chairman                          0141 333 9666

Iain D. Duffin                   Chief Executive                   0141 333 9666

John Love                        Finance Director                  0141 333 9666

Press and Media:

Ann-marie Wilkinson              Beattie Media                     0207 398 3300



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

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