Macfarlane Group PLC announced sales results for the first quarter of fiscal 2020. The first quarter of 2020 delivered a strong trading performance with Group sales growth of 2%.

The company provided earnings guidance for the second quarter of fiscal 2020 and for the full year ending 31 December 2020. As a result of Government actions to address the COVID-19 crisis, the company expects demand levels in the second quarter to reduce to between 75% and 80% of those seen in the second quarter of 2019. The company is managing its cost base in line with the reduced levels of activity and it would expect the second quarter to be a profitable period of trading albeit well below that achieved in the first quarter.

Given the current uncertainty and concerns around the pace of the potential recovery, it is not possible for the Company to provide meaningful guidance on trading for the financial year ending 31 December 2020. However, based on actions taken to date and current levels of trading, the company expects the business to remain profitable in 2020 and to operate within the current borrowing facility. Further announcements will be made on the anticipated 2020 performance when the Board has more clarity.