Trading Statement

Macfarlane Group PLC
19 December 2006


                              Macfarlane Group plc


                                 Trading Update


In September 2006, the Board set out the actions being taken in the second half
of 2006. These actions are having a positive impact in the second half of the
year, but despite encouraging sales growth, margins, whilst improving, have not
yet fully recovered to target in Distribution and demand continues to be
sluggish in our Manufacturing businesses in Labels and in USA.


We have therefore continued our programme of investment in the second half to
boost growth and profitability prospects for 2007 and beyond with a number of
revenue investments in e-commerce capability, new business development and
strengthening of the management team. The costs of the actions taken have been
more than covered by planned asset disposal gains and non-recurring credits
within continuing operations.


We are encouraged that trading in the final quarter of 2006 will be ahead of the
same period in 2005 and that Bloomfield Supplies Limited, acquired in October
2006, has traded well since acquisition and this gives the Board encouragement
to pursue further similar acquisitions in 2007.


The Board expects that the full year's trading profits from continuing
operations, after taking account of the actions and non-recurring items referred
to above, will be broadly in line with last year's figures. In addition to
continuing operations, the gain on disposal of Hungary will be reported in
discontinued operations. The Board's declared intention in relation to dividends
remains unchanged.




Further information: Archie S. Hunter Chairman 0141 333 9666
Peter D. Atkinson Chief Executive 0141 333 9666
John Love Finance Director 0141 333 9666






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