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: +44(0)24 7642 1100
|
Shore Capital (Nominated Adviser &
Broker)
Advisory
Patrick Castle/Sophie
Collins
Broking
Henry Willcocks
|
Tel: +44(0)20 7408 4050
|
Panmure Liberum (Joint Broker)
Edward Mansfield
Will King
Anake Singh
Hudson Sandler
Nick Lyon
Nick Moore
Francesca Rosser
|
Tel: +44 (0) 20 3100 2000
Tel: +44 (0) 20 7796 4133
|