Mik

Can't think why this would not be working. I've just created a new workbook with 2 sheets, (sheet1 and sheet2) and run the macro on it and it worked ok

One other thing you could try would be to start the macro on the output sheet and change the code to
outfile = activecell.address(external:=true

You will then have to select the new sheet / range wit
Sheets("sheet2").Activat
Range("e5").Selec

Ton