REG - Mpac Group PLC - Full Year Trading update

MPACAnnouncement

16/01/2025 07:00

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RNS Number : 4994T  Mpac Group PLC  16 January 2025

 
 
16 January 2025

AIM: MPAC

 

Mpac Group plc

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

 

Full Year Trading update

 

FY24 trading performance in line with market expectations, a healthy opening
order book for 2025 and good initial progress made on integrating H2 24
acquisitions

 

 

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 2024 ("FY24").

 

The Board is pleased with the Group's FY24 performance and expects that it
will report underlying profit before tax in line with market expectations of
£10.5m (FY23: £7.1m). As anticipated, profit before tax in H2 24 was
substantially above H1 24, aided by improving project margins and operational
efficiencies.

 

The Group successfully executed the acquisitions of BCA Automation and CSi
Palletising in H2 24 (the "Acquisitions"). The Acquisitions have continued to
perform in line with the Board's expectations. The integration is progressing
well and according to plan.

 

After the completion of the Acquisitions, the Group closes FY24 with net debt
of £37.0m (FY23: net cash £2.1m) and a reduction in working capital to
£7.0m (FY23: £13.2m), which includes circa £8.0m of invoiced receivables,
due in 2024, most of which has been received in early January 2025.  The
Group remains on track to bring net debt down to less than 1 times EBITDA by
the end of 2025.

 

Quote activity and the prospect pipeline within the growth sectors in which
Mpac operates of Healthcare and Food and Beverage continues to be strong and
following the Acquisitions, the Group ended FY24 with an increased value of
the closing order book at c.£111.0m (FY23: £72.5m) providing good coverage
over 2025 forecast revenue.

 

With an increasingly diverse prospect pipeline and order book and good quote
activity, as well as a stronger offering through combined product lines from
our existing and acquired businesses, the Group is well placed to deliver on
market expectations for the current financial year and beyond.  The Board
remains confident that the Group will continue progressing its long-term
growth strategy.

 

Adam Holland, Chief Executive, commented:

 

We are pleased with full year 2024 financial performance, which is in line
with market expectations. 2024 has proved to be a transformational year for
the Group, with the acquisitions of CSi, BCA and Siga Vision providing the
platform for a step change in scale and profitability, accelerating our
progress towards our strategic objectives. The acquisitions materially
diversify the Group's portfolio enabling the Group to provide a fuller line
offering, as well as access to new customer relationships providing a platform
for continued robust organic growth.

 

We would like to thank shareholders for their support of the acquisition of
CSi and their ongoing support as we head into 2025. We anticipate reporting
for 2024 record levels of revenue, with underlying profit before tax breaking
through the £10m mark for the first time.  We start 2025 with a larger and
more diverse order book from our resilient end markets providing a high level
of coverage over forecast revenue, supporting delivery of our expectations for
further growth in the year ahead.''

 

The Group's full year results for the year ended 31 December 2024 are expected
to be announced in the week commencing 28 April 2025, allowing for the
additional time required to complete the first audit of the enlarged Group
following the recent significant acquisitions.

 

 

For further information, please contact:

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

 Adam Holland, Chief Executive

 Will Wilkins, Chief Financial Officer
 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 (Financial PR)                   Tel: +44 (0) 20 7796 4133

 Nick Lyon

 Nick Moore

 Francesca Rosser

 

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