REG - Mpac Group PLC - Trading Update and Sale of Lambert for up to £20m

MPACAnnouncement

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RNS Number : 3638H  Mpac Group PLC  08 June 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF
MAR.

 

8 June 2026

AIM: MPAC

 

Mpac Group plc

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

 

Trading Update

and

Sale of Mpac Lambert for up to £20m to significantly reduce net debt

 

 

Mpac Group plc, a global leader in high-speed packaging and automation
solutions, today announces the following trading update and the sale of Mpac
Lambert Limited ("Lambert").

 

Trading Update as of the end of May 2026

 

In the outlook of the Group's FY 2025 results announced on 21 April 2026, we
said that the full year would 'as in previous years be second half weighted,
but, in the context of increasingly uncertain market conditions, it is
difficult to predict the full impact of the Middle East conflict on the timing
of customer capital investment decisions.' The results announcement also
indicated that due to lower market volumes, price competition for OE orders
has increased, resulting in pressure on gross margins.

 

Since 21 April 2026, trading margins have continued to be impacted by delays
in customer decision making on capital investments, heightened competitive
pricing pressure, and lower operational leverage arising from reduced OE
volumes. Accordingly, the Board now expects first half margins to be below the
prior year, and FY 2026 underlying profit before tax to be substantially below
current market expectations on a like-for-like basis.

 

In response to the continued challenging market backdrop, the Group has
implemented further actions to drive volume, align operational capacity with
current demand levels, reduce overhead costs and to improve cash generation.

 

As a result of these actions and those described below, the order book at the
end of May has improved to £98.8m (31 Dec 2025: £90.0m). The Group continues
to focus on maintaining appropriate liquidity and covenant headroom. This
position will be materially improved by the proceeds from the sale of Lambert.

 

Sale of Lambert and significant reduction in net debt

 

As part of a broader strategic review started in Q4 2025, aligning the Mpac
Group around scalable, fuller line packaging machinery solutions, it was
concluded that Lambert did not fit within the Group's ongoing strategy.
Lambert is differentiated from the other businesses in Mpac by the highly
customised, bespoke nature of its projects, and by its focus on
product-specific assembly processes that are often unique to a customer.

 

Accordingly, the Group has entered into an agreement for the sale of the
entire issued share capital of Lambert, to Mech.i. Tronic S.p.A, an Italian
headquartered provider of automation technologies, for an initial cash
consideration of £16.0m (the "Transaction"). The Transaction includes the
sale of SIGA Vision which was acquired by Lambert in August 2024 for £0.1m.

 

Completion of the Transaction is subject to certain conditions, notably formal
clearance issued by the Secretary of State in accordance with the National
Security and Investment Act 2021. Clearance is expected to take place during
Q3. Further earn-out consideration of up to £4.0m may become payable, subject
to the financial performance of Lambert during the year ending 31 December
2026.

 

Founded in 1973 and acquired by Mpac in 2019 for £15.0m, Lambert creates
bespoke automation solutions for its customer's product assembly processes,
including specialist filling and dosing, with focus in the medical and
consumer healthcare markets. The business is headquartered in Tadcaster, UK
and employs approximately 160 people and as at 31 December 2025 had net assets
of £2.1m and generated a loss before taxation of £1.6m in FY 2025.

 

The net proceeds from the sale will be used to significantly reduce Group net
debt, which stood at £47.9m at 31 December 2025.

 

Adam Holland, Chief Executive Officer, commented:

 

"Macroeconomic trading conditions in H1 2026 have remained challenging, with
continued delay to customer decision making and gross margins impacted by
continued competitive pricing pressures and lower operational leverage.
However, the Group has acted decisively to manage load-capacity, reduce
overheads and preserve cash generation. This has established the conditions
for the Group to rebound strongly when market sentiment recovers.

 

"Alongside this work, since Q4 2025, we have been seeking to align the Group
towards scalable, full-line packaging machinery solutions. The sale of Lambert
is an important step in this strategy. This transaction represents a positive
outcome for employees and customers and, on closure, will deliver a
significant reduction in net debt for the Group.

 

"Despite near-term market uncertainty, the Group remains focused on
operational execution, cash generation and deleveraging, while continuing to
support customers across our core end markets and maintain strategic
investment in future growth opportunities."

 

Investor presentation

Management will be hosting a live online presentation for all existing and
potential shareholders via the Investor Meet Company platform at 16:30 BST
today. Questions can be submitted pre-event via the Investor Meet Company
dashboard, or at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free and add to meet Mpac
Group via

(https://www.investormeetcompany.com/mpac-group-plc/register-investor)
https://www.investormeetcompany.com/mpac-group-plc/register-investor
(https://www.investormeetcompany.com/mpac-group-plc/register-investor)

 

For further information, please contact:

 

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

 Adam Holland, Chief Executive

 Duncan Tyler, Interim 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

 Freddy Wooding

 Tavistock                                       Tel: +44 (0) 20 7920 3150

 Nick Dibden

 Katie Hopkins

 Grace Cooper

 

 

Notes to Editors:

Mpac (AIM:MPAC) is a global leader in engineering and technology, designing,
precision engineering, manufacturing, and supporting high-speed packaging
machinery and end-of-line solutions.

 

Mpac serves 80 countries across four key regions around the world including
the Americas, EMEA and APAC. The Company operates in the attractive growth
markets of Food & Beverage and Healthcare. These targeted markets boast
significant growth opportunities.

 

Through its four product lines - BCA, Langen, Switchback, and CSi - the
Company provides Original Equipment and Services for automated high-speed
packaging, from assembly of products through to case packing and palletising.
Mpac's service offering ensures a stable and recurring revenue after the sale
of Original Equipment.

 

Mpac is a people-driven business. It employs more than 1,000 colleagues around
the world including more than 500 dedicated global engineers and designers.
The business is underpinned by Mpac's key strategic pillars, including
innovation, which remain fundamental to the Company's long-term sustainable
growth.

 

Mpac is headquartered in Coventry, UK and operates sites in the US and Mexico,
Canada, the Netherlands, Romania, Malaysia and Singapore.

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