Full Year Trading Update

RNS Number : 1236Y

Mpac Group PLC

12 January 2022

 

    12 January 2022

AIM: MPAC

[This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No. 596/2014]

Mpac Group plc

(''Mpac'' or "Group")

Full Year Trading Update

FY21 trading performance in line with market expectations and encouraging outlook for FY22

Mpac Group plc, a global leader in high-speed packaging and automation solutions, today announces a trading update (unaudited) for the year ended 31 December 2021.

The Board is pleased to announce that the Group has had a strong FY21 and expects to report revenue, underlying profit before tax, and closing cash in line with market expectations.

Order intake, revenue and underlying profit before tax have all increased over the period, underpinned by the continued progress of delivering the 'One Mpac' business model. This is despite the operational challenges experienced during the year caused by the global supply chain crisis and the impact on labour availability due to Covid-19 resurgence.

The strong H1 2021 order intake continued through H2, delivering full year growth from the resilient end markets which Mpac serves including essential healthcare, and food and beverage. The Group ended 2021 with a closing order book of circa £77.0m (December 2020: £55.5m), providing good coverage of 2022 forecast revenue.  This, along with a healthy prospect pipeline, means the Group has an encouraging outlook for FY22.

Following the announcement of the contract win with FREYR Battery in July 2021, the Group has made good progress in the development and build of the clean energy casting and unit cell assembly line.  The project remains on track to be completed in Q3 2022.

The strong financial performance during the year is underpinned by the Group's continued progress in realising the financial benefits of the strategic plans of delivering on the 'One Mpac' business model. The Group remains focused on executing its long-term strategy of developing Original Equipment order intake growth and improved margins through our Digital Services customer offering, together with increased operational efficiencies. This has led to an improved financial performance and cash generation by operating as a single entity business model. 

Our full year results, for the year ended 31 December 2021, are scheduled to be announced in the week commencing 14 March 2022.

Tony Steels, Chief Executive, commented:

"I am pleased to report Mpac made good progress and a robust financial performance for 2021, in line with market expectations, in which we reached a milestone by exceeding £100m of order intake for the year.  The positive H1 2021 performance has continued into H2 and the Group ended 2021 with both a strong closing order book and a healthy prospect pipeline, providing an encouraging outlook for 2022. I would like to thank our global team, who excelled in challenging circumstances. "  

For further information, please contact:

Mpac Group plc Tony Steels, Chief Executive Will Wilkins, Group Finance Director	Tel: [phone]
Shore Capital (Nominated Adviser & Broker) Advisory Patrick Castle Iain Sexton Broking Henry Willcocks	Tel: [phone]
Hudson Sandler Nick Lyon Nick Moore	Tel: [phone]

 

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