A BOOST in profits of 21 per cent has helped packaging firm Macfarlane Group to a sixth consecutive year of profit growth, writes Kevin Scott.

The Glasgow-based company’s pre-tax profits in 2015 were £6.8 million on sales of £169.1m, in line with market expectations.

The positive numbers were attributed to organic sales growth and the contributions from the acquisition of One Packaging, in August 2015, and the full year contribution from the acquisitions of Lane Packaging and Network Packaging.

The group’s packaging business, which accounts for 85 per cent of its sales, saw a 13 per cent increase in revenue. Manufacturing operations dropped by three per cent to £26.1m due in part to a reduction in demand.

A final dividend of 1.29p was announced, giving a full-year dividend of 1.82p, up 10 per cent on last year. Earnings per share at the firm jumped 15.6 per cent to 4.37p.

The board said it was confident that its strategy to focus on key growth markets continued to be effective, with defence, aerospace and medical sectors identified as areas for accelerated sales growth.

Chief executive Peter Atkinson was awarded a package totalling £508,000.