Packaging company Macfarlane Group said it is investing £1.2m in equipment to restore full operational capability at its Pitreavie business, following a recent tragic incident.
Additionally, it is preparing its pension scheme for a potential buy-in, which is expected to result in a non-recurring accounting charge of £2m to £3m because of an increase in the cost of historic pension equalisation.
The board now anticipates its full-year performance to align with market expectations, with consensus adjusted operating profit at £19.1m as set out in its trading update dated 22 October.
Aleen Gulvanessian, chair of the Group, said: “We continue to take steps to support the wellbeing of our colleagues at Pitreavie.
“The management team remains focused on stabilising the Pitreavie business and implementing actions to improve the performance of the Distribution business.”
Akhil Patel, analyst at Shore Capital, said: “We believe this update should be taken positively by the market and come as a relief, given the challenging market conditions have not weakened any further.”
Serica Energy
The acquisition of Prax Upstream is expected to complete in mid-December, adding Lancaster production, and the company is progressing towards a Main Market listing.
Chris Cox, CEO, stated: “Production rebounded in November to once again average above 50,000 boepd, a level that more accurately reflects the potential of our portfolio.
“The expected near-term addition of Lancaster production, following completion of our acquisition of Prax Upstream, will add a further short-term boost, and the resumption of regular liftings from Triton will return us to significant and sustainable cash generation going forward.
“This, in turn, will help us to deliver on our two-pronged growth strategy, as we seek to diversify our production both through investment in our existing portfolio and M&A.
“While the Budget announcements yesterday were a missed opportunity to kick-start investment across the UK North Sea, we now have greater clarity about the fiscal and regulatory regimes in which our investment decisions will be made.
“We have multiple, and material, organic growth options, and we will work to high-grade the investments that maximise shareholder value.”
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