REG - Mpac Group PLC - Trading Update and Notice of Results

MPACAnnouncement

10/07/2024 07:00

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RNS Number : 7563V  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                                  Tel: +44(0)24 7642 1100

 Adam Holland, Chief Executive

 Will Wilkins, Group Finance Director
 Shore Capital (Nominated Adviser & Broker)      Tel: +44(0)20 7408 4050

 Advisory

 Patrick Castle/Sophie Collins

 Broking

 Henry Willcocks

 Panmure Liberum (Joint Broker)                  Tel: +44 (0) 20 3100 2000

 Edward Mansfield

 Will King

 Anake Singh

 Hudson Sandler                                  Tel: +44 (0) 20 7796 4133

 Nick Lyon

 Nick Moore

 Francesca Rosser

 

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