REG - Mpac Group PLC - Full Year Trading Update

MPACAnnouncement

16/01/2023 07:00

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RNS Number : 7500M  Mpac Group PLC  16 January 2023

 
 
16 January 2023

AIM: MPAC

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018

 

Mpac Group plc

(''Mpac'', "Company" or "Group")

 

Full Year Trading update

 

FY22 trading performance in line with market expectations and encouraging
outlook for FY23

 

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 2022 ("FY 22").

 

The Group had an improved H2 22 over H1 22 and expects to report full year
revenue and underlying profit before tax in line with market expectations.

 

Order intake in H2 22 was significantly above H1 22, reflecting the resilience
of the healthcare, and food and beverage end markets.  Service order intake
and revenue continued to perform well in FY 22 with growth over the prior
year. The Group ended 2022 with a closing order book of circa £69.0m
(December 2021: £78.4m) which provides good coverage of FY 23 forecast
revenue.  Our closing order book, along with an increasing prospect pipeline,
leaves the Group well placed and with an encouraging outlook as we enter FY
23.

 

As announced in July 2022, the unprecedented global supply chain disruption
and increasing macro-economic uncertainty impacted both operational
efficiencies and the timing of customer order intake.  By responding
dynamically and implementing mitigation measures, which included increasing
stock levels, securing alternative sources of electronic components, close
management of our supply chain and cost savings initiatives, the Group was
able to meet customers' expectations and improve margins and profitability in
H2 22.

 

These supply chain challenges resulted in longer Mpac project build time
frames during the year, leading to higher levels of working capital in H2 than
previously anticipated and accordingly impacting year end net debt. The
Group's balance sheet continues to be strong, and these increased levels of
working capital are anticipated to largely unwind during H1 23.

 

The Group continues to make good progress in the development and build of the
clean energy casting and unit cell assembly line for FREYR Battery.
Completion dates have been updated to accommodate customer specification
changes and we are on track to complete the contract in Q2 2023.

 

 

Our full year results, for the year ended 31 December 2022, are expected to be
announced in the week commencing 20 March 2023.

 

Tony Steels, Chief Executive, commented:

 

"I am pleased to report projected financial performance for 2022 in line with
market expectations which were revised at the end of H1 2022.  Our management
teams have worked tirelessly to implement mitigation measures to address the
short-term operational challenges caused by disrupted global supply chains.
Furthermore, the positive H2 2022 performance has contributed to a strong
closing order book and a healthy prospect pipeline, providing an encouraging
outlook. I would like to thank our global team, who have continued to excel in
extremely challenging circumstances."

 

 

 

For further information, please contact:

 Mpac Group plc                                  Tel: +44(0)24 7642 1100

 Tony Steels, Chief Executive

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

 Advisory

 Patrick Castle

 Iain Sexton

 Broking

 Henry Willcocks

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

 Nick Lyon

 Nick Moore

 

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