Trading Update and Notice of Results

Mpac Group PLC

10 July 2024

 

10 July 2024

Mpac Group plc

(''Mpac'' or the "Group")

Trading update and notice of results

H1 trading in line with the Board's expectations and positive outlook

Mpac Group plc, a global leader in high-speed packaging and automation solutions, issues a trading update ahead of the release of its unaudited results for the six months ended 30 June 2024.

Trading in the first half was in line with the Board's expectations, with profits for the period substantially above the prior year and on track to meet market expectations for the full year.

Execution of Original Equipment ("OE") projects in the period progressed well with revenue and margins improving over the prior year.  The performance of our recurring Service business was again strong, benefitting from the continued high level of customer focus from our service teams. In addition, the Group made solid progress against its strategic goals of extending our customer base with new global blue chip key accounts and securing repeat orders.

Year to date order intake remained very strong and is comparable to H1 2023 at c.£60m.  We expect to report revenue of c.£61m for the period, in line with H2 2023, which is significantly ahead of the prior year (H1 2023: £52.8m), resulting in a June 2024 closing order book of circa £71m This provides good coverage over forecast H2 2024 revenues.  As communicated in the AGM statement in May, we expect the full year underlying profit before tax to be weighted towards the second half of the year.

As anticipated, the timing of order intake and the phasing of projects resulted in an expansion of working capital which is expected to unwind during the course of H2 2024, with net debt at the half year at £4.9m.

The outlook for the business remains positive and we start H2 2024 with a healthy prospect pipeline and order book.  We continue to secure orders from blue chip global companies in our core, resilient, end markets of Healthcare and Food and Beverage, coupled with a balance sheet that provides us with the ability to invest in the Group's growth over the medium and long term. The Group remains focused on executing its long-term strategy of delivering OE and Service growth at improved margins.

Adam Holland, Chief Executive, commented:

"We are pleased to report that half year trading is in line with the Board's expectations, leaving the Group well placed to meet full year expectations. The Group continued to gain momentum through the period and we will report a substantial increase in revenue and profitability in H1 2024 over H1 2023.  We have successfully built upon the foundations established last year, with further commercial and operational improvements in the period delivered by our highly valued team.  We are well positioned to succeed in the attractive markets in which we operate and deliver on our strategic objectives.''

The Group expects to announce its unaudited results for the six months ended 30 June 2023 on 10 September 2024.

For further information, please contact:

Mpac Group plc Adam Holland, Chief Executive Will Wilkins, Group Finance Director	Tel: [phone]
Shore Capital (Nominated Adviser & Broker) Advisory Patrick Castle/Sophie Collins Broking Henry Willcocks	Tel: [phone]
Panmure Liberum (Joint Broker) Edward Mansfield Will King Anake Singh Hudson Sandler Nick Lyon Nick Moore Francesca Rosser	Tel: [phone] Tel: [phone]

 

END