Group revenue in the first four months of the year was 15% ahead of the same period in 2007.

Distribution revenue was 17% ahead of last year and manufacturing was ahead by 5% from the same time in 2007.

Chairman Archie Hunter said: "In recent years, considerable effort has been made to rebuild and refocus to create a solid foundation from which the group can progress.

"Our extensive network, customer service offering and our experienced and committed team, position Macfarlane well for the future."

The group said profit performance in the first four months is "significantly ahead of last year and in line with the board's expectations".

In January, the company bought Online Packaging for £5.1m, which it said has performed well since the acquisition.

During December 2007, agreement was reached to sell a surplus investment property and the proceeds of £2.4m were received on 8 January 2008.

The company said that while debt has increased as a result of the transactions, the "balance sheet remains strong and is capable of supporting our programme of value enhancing acquisitions".

Although the general economic environment in the UK continues to be "uncertain", the business said its strong sales growth and results confirm its confidence in the management actions it is implementing.

The company's AGM is due to take place tomorrow (20 May) in Glasgow, where the group has its headquarters.

The Macfarlane Group employs 800 people at 23 sites, mainly in the UK and Ireland.

Sectors include consumer goods, logistics, electronics, food manufacturing and retailing, internet and home retailing.