REG - Mpac Group PLC - Half Year Results
Tue 07:00
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RNS Number : 3292A Mpac Group PLC 23 September 2025
23 September 2025
AIM: MPAC
Mpac Group plc
("Mpac", "the Company" or "the Group")
Half Year Results for the six months to 30 June 2025
H1 operating performance as expected although Q2 order intake impacted by
tariff uncertainty
Full year market guidance remains unchanged
Mpac (AIM: MPAC), the global packaging and automation solutions Group, today
announces its unaudited financial results for the six months to 30 June 2025
(the "Period" or ''H1'').
Financial Highlights
£'m H1 25 H1 24 Change
Order intake 64.2 59.7 +7.5%
Order intake - 2024 acquisitions 26.5 - -
Order intake - pre-acquisition BUs 37.7 59.7 (36.9%)
Closing order book 91.7 77.5 +18.3%
Total revenue 84.7 60.0 +41.2%
Total revenue - 2024 acquisitions 36.4 - -
Total revenue - pre-acquisition BUs 48.3 60.0 (19.5%)
Underlying operating profit 7.5 4.5 +67%
Underlying* profit before tax 5.0 4.0 +25%
Underlying* earnings per share ** 12.1p 15.2p (20.4%)
Statutory (loss)/profit before tax (9.4) 3.3 (12.7)m
Basic (loss)/earnings per share (36.0)p 15.0p (51.0)p
Net cash/(debt) (43.2) (4.9) (38.3)m
* Non-underlying items include pension costs and reorganisation costs (note
5)
** Underlying EPS reflect the dilutive effect of the issue of 9,598,849 shares
related to the 2024 acquisitions of CSi and BCA
Operational and Strategic highlights
· The Group delivered revenue growth of 41.2% during the Period as the
acquisitions undertaken in H2 2024 made a material contribution, offsetting
the lower revenue in the existing business during the Period mainly due to
tariff uncertainty.
· 90 OE orders won from 41 different customers, with 42% of all OE
orders having been won from new customers to the Group.
· Underlying operating margin up to 8.9% from 7.5% driven by improved
gross margins and operating leverage.
· Underlying operating profit up 67% as a result of the increased
revenue and gross margin improvement.
· The 2024 acquired businesses of CSi, BCA and Siga Vision are performing
well and in line with expectations. Integration is progressing according to
plan.
· Rapid reaction to changing marketing dynamics from tariff uncertainty
with significant progress made in the consolidation of US operational
footprint following the announcement of the closure of the Cleveland facility,
reducing cost base and improving operational leverage.
· H1 opening of a new low-cost Malaysian engineering hub, along with
initial assembly purchase orders from pre-acquisition businesses directed to
the low cost CSi Romanian facility.
· Statutory loss of £9.4m reflects non-underlying operating
expenditure of £15.4m which includes the non-cash cost of £11.5m from
consolidating the US footprint
· Growth in recurring Service business revenue and margins as well as
good progress made in the integration of Service business model of acquired
businesses.
· Red Dot Award received for design and innovation of recently
launched top load 'Horizon' cartoner.
· Buy-in of the UK defined benefit pension scheme announced in July
2025, with Aviva to cover all known future liabilities.
· Three Non-Executive appointments to the Board separately announced
today which will provide additional experience and skills to support the Group
and its growth ambitions.
Current trading and outlook
· Guidance for FY 2025 was revised in early July following lower than
expected OE order intake in H1, mainly associated with prospects in the US.
Current trading is in line with these revised expectations.
· Order intake since the half year end has been in-line with revised
expectations, with continued and anticipated slower OE order intake from
customers in the US. The current order book is c.£93m, with the margin on
projects in the order book in line with expectations.
· The 2024 acquisitions of CSi and BCA along with the wider recurring
Service business continue to perform well. The prospect pipeline continues to
increase, aided by cross selling opportunities although the timing for a
broader market recovery remains uncertain.
· Net debt at the end of August was higher than December 2024 at
£45.0m, reflecting project delivery timing and deposits from Q2 order intake.
This is expected to unwind in H2 with full year forecast debt expected to be
in line with the Board's expectations. The Group expects to remain
comfortably within its covenants with significant headroom.
Adam Holland, Chief Executive Officer, commented:
"As we announced in July, the impact of US trade tariffs, falling consumer
confidence, and growing economic uncertainty impacted order intake in the
first half of the year resulting in our customers deferring capital investment
decisions, particularly in the Americas region. The proactive steps that we
announced in July to accelerate the consolidation of our operational footprint
in the US and to simplify our business in response to challenging conditions
sets a direction of travel that will position the Group for future growth when
markets fully recover. Order intake during Q3 has been in line with our
revised expectations, and we remain on track to meet guidance for the full
year."
For further information, please contact:
Mpac Group plc
Tel: +44 (0) 2476 421100
Adam Holland, Chief Executive Officer
Will Wilkins, Chief Financial Officer
Shore Capital (Nominated Adviser & Joint Broker) Tel: +44 (0) 20 7408 4050
Advisory
Patrick Castle / Sophie Collins
Broking
Henry Willcocks
Panmure Liberum (Joint Broker)
Edward Mansfield / Will King / Freddie Wooding Tel: +44 (0) 20 3100 2000
Hudson Sandler Tel: +44 (0) 20 7796 4133
Nick Lyon / Nick Moore
Notes to Editor
Mpac (AIM: MPAC) is a global leader in engineering and technology, designing,
precision engineering, manufacturing, and supporting high-speed packaging
equipment and 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 six core product lines - BCA, Lambert, Langen, Switchback, CSi and
SIGA Vision - 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 1000 colleagues around
the world including more than 500 dedicated global engineers & 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 Tadcaster, UK and operates sites in the US and
Mexico, Canada, the Netherlands, Romania, Malaysia and Singapore.
HALF-YEAR MANAGEMENT REPORT
Introduction
Mpac serves customers' needs for ingenious, innovative automation and
packaging machinery. We design, precision engineer, manufacture and support
high-speed automation and packaging solutions, with embedded process
monitoring systems.
The Group is focused on the large resilient Food and Beverage, and Healthcare
markets. The opportunities for the Group are based on the following
fundamental strengths:
• Robust long-term growth drivers in our substantial
target Healthcare and Food & Beverage markets
• Leadership in innovative, high-speed packaging
machinery and automation solutions
• Global reach with embedded local presence
providing exceptional service to our customers
• A talented and engaged workforce with deep
engineering know how
• Extensive Original Equipment installed base to
drive Service revenues
The Board believes that these fundamental long-term strengths place Mpac in a
strong position and that the Group continues to make good progress towards
achieving its long-term strategic objectives.
A strong opening order book, good performance from the 2024 acquisitions of
CSi, BCA and Siga Vision, and healthy short-cycle service business all
materially contributed to H1 revenue and operating performance in line with
management expectations. However, Original Equipment ("OE") order intake and
revenue in the Langen, Lambert and Switchback businesses slowed materially in
Q2, with the Americas region particularly impacted, as customers responded to
growing uncertainty around tariffs by deferring capital investments. This
resulted in the Board lowering its full year expectations as announced by the
Company on 1 July 2025.
The Board can confirm that performance for FY 2025 is in line with revised
guidance although the timing of a broader market recovery remains uncertain.
Overview
H1 order intake of £64.2m (£37.7m without 2024 acquisitions) was lower than
expected, impacted by delayed customer decision making, particularly in the
US, but was ahead of prior year (H1 2024: £59.7m). Order intake in our
2024-acquired businesses was in line with expectations. The H1 2025 closing
order book of £91.7m (H1 2024: £71.4m) provides extensive coverage over
revised forecast revenue for the remainder of 2025.
Revenue generated from OE projects and Service was £84.7m in H1 (£48.3m
without 2024 acquisitions), compared to £60.0m in the prior year. Gross and
operating margins have increased, underpinned by increasing operational
leverage and efficiency. As has been the case in prior years, operating
returns are anticipated to be weighted to the second half due to improved
project margins.
The timing of individual orders and project billing milestones has an impact
on working capital and we closed H1 with elevated levels of unbilled revenue
associated with projects expected to complete in H2 2025 and net debt of
£43.2m. The build-up of working capital is expected to unwind as the
projects complete.
The outlook for the Group remains positive, with broader secular trends of
innovation and investment in automation supporting long term demand growth for
OE. We carry forward a strong prospect pipeline and order book that supports
delivery of FY25, across an increasingly broad range of companies in our core
end markets. Our strong balance sheet provides us with the ability to invest
for growth over the medium term and beyond.
Strategic update
Further progress has been made on executing our strategic initiatives:
Going for Growth
Whilst the timing of orders in H1 has impacted short-term performance, the
fundamental drivers of long-term growth remain a strategic focus for the
Group. A key element of our growth strategy is to focus on broadening our
customer base with new global blue-chip accounts and to drive commercial
synergies following the 2024 acquisitions. Progress in developing
cross-selling opportunities into existing global customers is encouraging,
improving the baseline for future revenue growth. The significant value of
recent quote activity related to cross selling between CSi and the other Mpac
product lines resulted in the first fuller-line OE order from a global blue
chip FMCG customer. Our strategy remains focused on our core markets and
broadening the customer base of strategic global accounts.
Outstanding Customer Service
Our recurring Service business has continued to make good progress following
the appointment of a dedicated Group Service Director in January 2025 to
support the integration of Service operations from the recently acquired
businesses and establishing a roadmap of improved systems to support organic
growth. Spare parts handling and fulfilment in the Americas has been moved
from Canada to the US, removing the risk of import tariffs and providing our
US customers with a local source for all of their Service needs. Development
of our digital offering continues to attract customer interest, with
innovation underpinning growth in this space.
Innovation
In H1 we were excited to announce the expansion of our mid-range horizontal
cartoning portfolio with the launch of Brisa. Brisa forms part of a new
frozen pizza-focused range of three cartoning solutions, alongside the Ostro
and the Maestro, meaning that we now cover a broad spectrum of speeds,
formats, flexibility, and wash-down requirements. This provides customers
with tailored options at different investment levels, strengthening our
position in a key growth segment. Advances in infeed technology, including
AI-driven optimisation, are improving real-world performance and productivity.
These developments help customers reduce operating costs and increase
efficiency, aligning with their spend and throughput requirements.
Our digital solutions continue to gain traction. Cube Connect installations
are delivering measurable benefits, with customers valuing accurate, broad
data capture that reduces reliance on manual operator input. Combined with
Mpac Replay - our camera system that links real-time video to machine data -
these tools enhance productivity throughout the machine's life and enable more
effective service interventions and has been made possible following the 2024
acquisition of SIGA Vision.
In Q2 we were pleased to announce that our newly launched Horizon top load
cartoner has won the highly respected 'Red Dot' design award.
Operational Excellence
Consolidation of operations in the US was launched in July following the
decision to accelerate plans in response to market conditions, closing the
facility in Cleveland Ohio. This was accompanied by capacity management
actions across the Group, including reduced capacity in Mississauga Canada,
designed to increase utilisation and protect margin without compromising long
term strategic growth. During H1 the first steps were taken to take
advantage of lower cost build and assembly facilities in Romania, supporting
the Lambert and Langen businesses in Europe, and the launch of a low-cost
engineering centre in Malaysia. These actions will be a focus in H2 2025 and
beyond as the Group works to improve utilisation and reduce costs.
People
Our employees are our most important asset, and we made strong progress on our
strategy in the first half of 2025. We finalised our talent management
strategy, mapping critical roles, and initiating a comprehensive skills and
competencies review across both existing and newly integrated businesses.
Following the acquisition of CSi and BCA we have aligned HR polices and
delivered onboarding and culture integration programmes to embed our values
and ways of working. The workforce skills analysis and updated competency
framework now give us a clear, data-driven view of our current capabilities
and gaps, enabling targeted development plans for leadership, technical
expertise, and future-focussed skills. These actions are establishing the
foundations to build a unified, agile, and skilled workforce, positioning us
to meet strategic growth objectives and support ongoing integration.
Financial results
The Group entered 2025 with a diverse and good quality order book which, along
with H1 order intake, resulted in sales in the period of £84.7m (H1 2024:
£60.m), a 41.2% increase on prior year. On a like for like basis
(pre-acquisitions), revenue declined 20% reflecting the slowing of US order
intake, whilst other regions were less effected. Gross profit margins
increased to 36.0% (H1 2024: 28.2%), driven by a favourable product mix in the
period.
Order intake in the period increased to £64.2m, 7.5% above H1 2024. Like
for like order intake (pre-acquisitions) was 37% below the prior year. We
held a £91.7m order book going into the second half of 2025, providing good
coverage of updated revenue expectations for FY 2025. The full year revenue
expectation is based upon £19.0m (11%) of revenue coming from orders still to
be won in H2 2025, primarily from short-cycle service business.
Underlying profit before tax was £5.0m (H1 2024: £4.0m). After a net tax
charge of £1.3m (H1 2024: £0.9m), underlying profit after tax for the Period
was £3.7m (H1 2024: £3.1m). Underlying earnings per share was 12.1p (H1
2024: 15.2p), diluted by the share issuance in 2024 to finance acquisitions.
The underlying results are stated before pension-related credits/charges of
£0.1m (H1 2024: £0.2m), comprising charges in respect of administering the
Group's defined benefit pension schemes of £0.9m (H1 2024: £0.5m) and
finance income on pension scheme balances of £1.0m (H1 2024: £0.7m),
amortisation of acquired intangible assets of £3.0m (H1 2024: £0.8m) and
acquisition costs of £nil (H1 2024: £0.1m). In H1 2025 the Group incurred
a non-cash charge of £11.5m related to the consolidation of the Cleveland and
Boston sites.
On a statutory basis, the loss after tax for the period was £10.8m (H1 2024:
profit £3.1m). The basic loss per share amounted to 36.0p (H1 2024:
earnings of 15.0p).
Operating performance
Overall revenue increased by 41.2% to £84.7m (H1 2024: £60.0m) supported by
strong order intake and execution of projects.
The Group manages the business in two parts, Original Equipment (OE) and
Service, and across three regions (Americas, EMEA and Asia Pacific).
Individual contracts received by the OE business can be sizeable.
Accordingly, one significant order can have a disproportionate impact on the
growth rates seen in individual markets year on year.
Original Equipment ("OE")
OE order intake decreased by 3.2% to £42.7m (H1 2024: £44.1m), the reduction
being mainly associated with delayed order intake from customers in the US.
Revenue increased by 47.5% to £65.8m (H1 2024: £44.6m). On a like-for-like
basis revenue was £36.1m, 19% below the prior half year.
EMEA OE revenue increased by 93.3% to £34.8m (2024: £18.0m), whilst Americas
OE revenue overall increased by 39% to £28.8m (H1 2024: £20.7m), due mainly
to trading of opening order book. APAC decreased by 62.3% to £2.2m (H1
2024: £5.9m). Growth in EMEA was primarily due to the inclusion of CSi
which has a significant proportion of its revenue from customers in the
region.
Service
Service order intake of £21.5m represents a 27.0% increase on the strong
prior half year, which was 5% up on H1 2023. On a like for like basis,
Service order intake was 8% lower at £14.4m.
Service revenue was 23% above the prior half year at £18.9m (H1 2024:
£15.4m). On a like for like basis, Service revenue was broadly in line.
Overall, Service revenue represented approximately 22.3% of Group revenue in
the period.
Finances
Gross cash as at 30 June 2025 was £8.6m (30 June 2024: £6.0m; 31 December
2024: £18.2m) after utilisation of borrowing facilities of £50.9m (30 June
2024: £10.0m, 31 December 2024: £54.8m). Cash balances are impacted by the
timing of project order intake and associated working capital cycles with an
unwind expected in H2 2025.
Net cash outflow from operating activities in the first half of the year was
£0.7m, after an increase in working capital levels of £7.0m, due mainly to
the timing of deposits from new orders and project execution milestones, with
deficit recovery payments to the Group's defined benefit pension schemes of
£0.1m and payments to the escrow account of £1.2m. Capital and product
development expenditure in the first half of the year was £2.2m (30 June
2024: £1.4m).
The Group maintains bank facilities appropriate to its expected needs
including committed borrowing facilities with HSBC UK Bank Plc of £44m.
These facilities, which are committed until September 2027, are subject to
covenants covering interest cover and adjusted leverage and are both sterling
and multi-currency denominated.
Dividend
Having considered the trading results to 30 June 2025, together with the
opportunities for investment in the growth of the Group, the Board has decided
that it is appropriate not to pay an interim dividend in respect of the
Period. No dividends were paid in 2024. Future dividend payments and the
development of a new dividend policy will be considered by the Board in the
context of trading performance and when the Board believes it is prudent to do
so.
Pension schemes
The Group is responsible for defined benefit pension schemes in the UK and the
USA in which there are no active members. The Company is responsible for the
payment of a statutory levy to the Pension Protection Fund.
Positively, the UK scheme purchased a buy-in policy from Aviva in the period
for £249m, securing the benefits of all members of the UK scheme and almost
entirely eliminating the risks to the Group from the scheme. After the
purchase of the policy, the IAS 19 valuation of the UK scheme at 30 June 2025
showed a surplus of £9.2m (£6.9m net of deferred tax), compared with a
surplus of £39.4m (£29.8m net of deferred tax) at 31 December 2024. The
scheme is anticipated to hold a small surplus of up to £5m which will be
returned.
The net valuation of the USA pension schemes at 30 June 2025, with total
assets of £6.7m, showed a deficit of £1.3m, a decrease of £0.2m from 31
December 2024, caused primarily by the fall in the value of the US dollar.
The aggregate expense of administering the pension schemes was £0.9m (H1
2024: £0.5m). The net financing income on pension scheme balances was
£1.0m (H1 2024: £0.7m).
Acquisition strategy
The near-term focus for the Group is on integration of acquisitions completed
in 2024. The Board continues to evaluate potential acquisition opportunities
that strategically fit the Group, and which will enhance our global presence
in packaging solutions serving the Healthcare and Food and Beverage markets.
The Company will provide updates on acquisitions whenever appropriate to do
so.
Outlook
Current trading is in line with the Board's revised expectations, and the
Group is well positioned to deliver on these.
The Group has a healthy order book, which has grown to £93.0m since the half
year, providing good initial coverage into FY26. Pleasingly the prospect
pipeline continues to increase, aided by cross selling opportunities, and
order intake during Q3 has been in-line with revised expectations, arresting
the decline in Order Book that was reported in H1.
We continue to focus on executing our long-term strategy of delivering OE and
Service growth, broadening our customer base, expanding our service offering,
developing our people, and delivering innovative new products into our target
markets.
Adam Holland
Chief Executive Officer
22 September 2025
CONDENSED CONSOLIDATED INCOME STATEMENT
6 months to 30 June 2025 (unaudited) 6 months to 30 June 2024 (unaudited)
Non-underlying Non-underlying
(note 5) (note 5)
Underlying £m Total Underlying £m Total
Note £m £m £m £m
Revenue 4 84.7 84.7 60.0 - 60.0
Cost of sales (54.2) (54.2) (43.1) - (43.1)
Gross profit 30.5 30.5 16.9 - 16.9
(6.8)
Distribution expenses (6.8)
(5.1) - (5.1)
(31.8)
Administrative expenses (16.4) (15.4)
(7.3) (1.4) (8.7)
0.2
Other operating income 0.2 - - -
Operating (loss)/profit 4, 5 7.5 (15.4) (7.9) 4.5 (1.4) 3.1
Financial income - 1.0 1.0 - 0.7 0.7
Financial expenses (2.5) (2.5) (0.5) - (0.5)
Net financing (expense)/income (2.5) 1.0 (1.5) (0.5) 0.7 0.2
(Loss)/profit before tax 4 5.0 (14.4) (9.4) 4.0 (0.7) 3.3
Taxation (1.3) (0.1) (1.4) (0.9) 0.7 (0.2)
(Loss)/profit for the Period 3.7 (14.5) (10.8) 3.1 - 3.1
(Loss)/earnings per ordinary share
Basic and diluted 7 (36.0)p 15.0p
Underlying 7 12.1p 15.0p
CONDENSED CONSOLIDATED INCOME STATEMENT (CONTINUED)
12 months to 31 December 2024 (audited)
Non-underlying
Underlying (note 5) Total
Notes £m £m £m
Revenue 4 122.4 - 122.4
Cost of sales (85.6) - (85.6)
Gross profit 36.8 - 36.8
Distribution expenses (10.5) - (10.5)
Administrative expenses (15.1) (8.6) (23.7)
Other operating income 0.8 - 0.8
Operating profit 4, 5 12.0 (8.6) 3.4
Financial income - 1.4 1.4
Financial expenses (1.4) - (1.4)
Net financing expense (1.4) 1.4 -
Profit before tax 4 10.6 (7.2) 3.4
Taxation (2.7) 0.7 (2.0)
Profit for the Period 7.9 (6.5) 1.4
Earnings per ordinary share
Basic 7 6.0p
Diluted 7 6.0p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months to 30 June 2025 (unaudited) 6 months to 30 June 2024 (unaudited) 12 months to 31 Dec 2024 (audited)
£m £m £m
(Loss)/Profit for the Period (10.8) 3.1 1.4
Other comprehensive (expense)/income
Items that will not be reclassified to profit or loss
Actuarial (losses)/gains (30.4) (0.2) 5.3
Tax on items that will not be reclassified to profit or 7.4 2.3 0.9
loss
(23.0) 2.1 6.2
Items that may be reclassified subsequently to profit or loss
Currency translation movements arising on foreign currency net investments
- (0.5) (1.6)
Effective portion of changes in fair value of cash flow hedges
0.2 (0.1) (0.3)
Reclassified to income statement from hedge reserve
0.3 (0.1) 0.1
0.5 (0.7) (1.8)
Other comprehensive (expense)/income for the Period (22.5) 1.4 4.4
Total comprehensive (expense)/income for the Period (33.3) 4.5 5.8
All income for the Period was derived from continuing operations
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Capital
Share Share Translation redemption Hedging Retained Total
capital premium reserve reserve reserve earnings equity
£m £m £m £m £m £m £m
6 months to 30 June 2025
Balance at 1 January 2025 7.5 61.8 (0.1) 3.9 (0.3) 35.2 108.0
Profit for the Period - - - - - (10.8) (10.8)
Other comprehensive (expense) / income for the Period
- - - - 0.5 (23.0) (22.5)
Total comprehensive (expense) / income for the Period
- - - - 0.5 (33.8) (33.3)
Equity-settled share-based transactions - - - - - - -
Purchase of own shares - - - - - - -
Total transactions with owners, recorded directly in equity
- - - - - - -
Balance at 30 June 2025 7.5 61.8 (0.1) 3.9 0.2 1.4 74.7
6 months to 30 June 2024
Balance at 1 January 2024 5.1 26.0 1.5 3.9 (0.1) 27.6 64.0
Profit for the Period - - - - - 3.1 3.1
Other comprehensive (expense) / income for the Period
- - (0.5) - (0.2) 2.1 1.4
Total comprehensive (expense) / income for the Period
- - (0.5) - (0.2) 5.2 4.5
Total transactions with owners, recorded directly in equity
- - - - - - -
Balance at 30 June 2024 5.1 26.0 1.0 3.9 (0.3) 32.8 68.5
12 months to 31 December 2024
Balance at 1 January 2024 5.1 26.0 1.5 3.9 (0.1) 27.6 64.0
1.4
Profit for the Period - - - - -
1.4
Other comprehensive (expense) / income for the Period 6.2
- - (1.6) - (0.2) 4.4
Total comprehensive (expense) / income for the Period
- - (1.6) - (0.2) 7.6 5.8
Equity-settled share-based transactions - - - - - - -
Equity issues 2.4 35.8 - - - - 38.2
Total transactions with owners, recorded directly in equity
2.4 35.8 - - - - 38.2
Balance at 31 December 2024 7.5 61.8 (0.1) 3.9 (0.3) 35.2 108.0
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 2025 (unaudited) 31 Dec 2024 (audited)
Note £m £m
Non-current assets
Intangible assets 5 107.7 117.4
Property, plant and equipment 5.4 5.8
Investment property 0.8 0.8
Right of use assets 10.0 9.4
Employee benefits 6 9.2 39.4
Deferred tax assets 2.8 5.3
135.9 178.1
Current assets
Inventories 16.6 15.9
Trade and other receivables 57.4 59.4
Current tax assets 1.0 0.8
Cash and cash equivalents 8.6 18.2
83.6 94.3
Current liabilities
Lease liabilities (3.0) (2.2)
Trade and other payables (64.4) (72.1)
Current tax liabilities (1.7) (2.2)
Provisions (2.7) (2.8)
Interest-bearing loans and borrowings (40.6) (41.2)
(112.4) (120.5)
Net current liabilities (28.8) (26.2)
Total assets less current liabilities 107.1 151.9
Non-current liabilities
Interest-bearing loans and borrowings (11.2) (14.5)
Employee benefits 6 (1.3) (1.5)
Other payables (1.4) (1.3)
Deferred tax liabilities (9.7) (19.1)
Lease liabilities (8.8) (7.5)
(32.4) (43.9)
Net assets 74.7 108.0
Equity
Issued capital 7.5 7.5
Share premium 61.8 61.8
Reserves 4.0 3.6
Retained earnings 1.4 35.1
Total equity 74.7 108.0
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months 6 months 12 months
to 30 June to 30 June to 31 Dec
2025 2024 2024
(unaudited) (unaudited) (audited)
£m £m £m
Operating activities
Operating (loss)/profit
Non-underlying items included in operating (loss)/profit
Amortisation (7.9) 3.1 3.4
Depreciation
Other non-cash items 15.4 1.4 8.6
Pension payments
Working capital movements: 0.5 0.4 1.0
- (increase)/ decrease in inventories
- decrease /(increase) in trade and other receivables 1.7 1.0 2.3
- (increase) / decrease increase in contract assets
- (decrease) / increase in trade and other payables (1.3) - -
- decrease in contract liabilities
- decrease in provisions (0.1) (1.2) (2.3)
(0.7) (0.7) 1.3
6.8 (0.7) 2.0
(3.5) (6.0) 3.6
(4.6) (0.1) 0.6
(3.9) (2.2) (14.7)
(1.1) (0.1) (0.2)
Cash flows from continuing operations before reorganisation 1.3 (5.1) 5.6
Acquisition and reorganisation costs paid
(1.4) (0.1) (1.4)
Cash flows from operations (0.1) (5.2) 4.2
Taxation (paid) / received
(0.6) 0.6 (1.6)
Cash flows (used in) / from operating activities (0.7) (4.6) 2.6
Investing activities
Proceeds from sale of property, plant and equipment
Acquisition of property, plant and equipment - 0.2 0.4
Capitalised development expenditure
Net cash flow on acquisition of subsidiaries (0.6) (1.0) (1.9)
(1.6) (0.6) (3.1)
- - (54.9)
Cash flows from investing activities (2.2) (1.4) (59.5)
Financing activities
Interest paid
Proceeds from equity raise (1.4) (0.3) (1.2)
Repayment of term loans - - 28.4
Proceeds from borrowings (3.2) - -
Principal elements of lease payments - 2.0 38.5
(1.2) (0.6) (1.2)
Cash flows from financing activities (5.8) 1.1 64.5
Net increase/(decrease) in cash and cash equivalents (8.7) (4.9) 7.6
Cash and cash equivalents at 1 January 18.2 11.0 11.0
Effect of exchange rate fluctuations on cash held (0.9) (0.1) (0.4)
Cash and cash equivalents at Period end 8.6 6.0 18.2
NOTES TO ANNOUNCEMENT
1. General information
The half-year results for the current and comparative Period are unaudited but
have been reviewed by the auditors, PKF Littlejohn LLP, and their report is
set out after the notes. The comparative information for the year ended 31
December 2024 does not constitute statutory accounts as defined in section 434
of the Companies Act 2006. The Group's statutory accounts have been reported
on by the Group's auditor and delivered to the Registrar of Companies. The
report of the auditor was (i) unqualified, (ii) did not include a reference to
any matters to which the auditor drew attention by way of emphasis without
qualifying its report, and (iii) did not contain a statement under section
498(2) or (3) of the Companies Act 2006. The Group's statutory accounts for
the year ended 31 December 2024 are available from the Company's registered
office at Station Estate, Station Road, Tadcaster, North Yorkshire, LS24 9SG
or from the Group's website at www.mpac-group.com
(https://url.avanan.click/v2/___http:/www.mpac-group.com___.YXAxZTpzaG9yZWNhcDphOm86MjBhNjQxNWI3YTZlMTJhYWNhNzkxOGY2ZjQ1ZmZiYTQ6NjowZTllOjllN2MzN2MwMTI3Yzg3MGNhNjQ2OGE5M2U3MThjODcxMmYwYWYxNTJmNDdjY2IwOTI0MThkODE0NjhjMzgwN2Q6cDpU)
.
The Directors have considered the trading outlook of the Group for an 18-month
Period ending 31 December 2026, its financial position, including its cash
resources and access to borrowings, and its continuing obligations, including
to its defined benefit pension schemes. Having made appropriate enquiries,
the Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future.
For this reason, they continue to adopt the going concern basis in preparing
the condensed set of financial statements.
The condensed set of interim financial statements was approved by the Board of
directors on 22 September 2025.
2. Basis of preparation
(a) Statement of compliance
The condensed set of interim financial statements for the 6 months ended 30
June 2025 has been prepared in accordance with UK-adopted international
accounting standards, and in particular IAS 34 Interim financial reporting.
It does not include all the information required for full annual financial
statements and should be read in conjunction with the financial statements of
the Group for the year ended 31 December 2024.
(b) Judgements and estimates
The preparation of the condensed set of interim financial statements requires
management to make judgements, estimates and assumptions that affect the
application of accounting policies and reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
estimates.
In preparing the condensed set of financial statements, the significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were of the same type as those that
applied to the financial statements for the year ended 31 December 2024.
Mpac is subject to a number of risks which could have a serious impact on the
performance of the business. The Board regularly considers the principal
risks that the Group faces and how to mitigate their potential impact. The
key risks to which the business is exposed are set out on pages 21 to 25 of
the Group's 2024 Annual Report and Accounts.
3. Significant accounting policies
The accounting policies, presentation and methods of computation applied by
the Group in this condensed set of interim financial statements are the same
as those applied in the Group's latest audited financial statements. No new
accounting standards have been applied for the first time in these condensed
interim financial statements.
4. Operating segments
It is the Group's strategic intention to develop "One Mpac", accordingly
segmental reporting reflects the split of sales by both Original Equipment
(OE) and Service together with the regional split, Americas, EMEA and Asia.
The Group's operating segments reflect the basis of the Group's management and
internal reporting structure.
Unallocated costs include distribution and administrative expenditure.
Further details in respect of the Group structure and performance of the
segments are set out in the half-year management report.
6 months to 30 Jun 2025 6 months to 30 Jun 2024 12 months to 31 Dec 2024
OE Service Total OE Service Total OE Service Total
£m £m £m £m £m £m £m £m £m
Revenue
Americas 28.8 9.2 38.0 20.7 7.2 27.9 44.9 15.4 60.3
EMEA 34.8 8.8 43.6 18.0 6.7 24.7 33.8 13.1 46.9
Asia Pacific 2.2 0.9 3.1 5.9 1.5 7.4 12.5 2.7 15.2
Total 65.8 18.9 84.7 44.6 15.4 60.0 91.2 31.2 122.4
Gross profit 30.5 16.9 36.8
Selling, distribution & administration
(23.0) (12.4) (24.8)
Underlying operating profit 7.5 4.5 12.0
Unallocated non-underlying items included in operating profit
(15.4) (1.4) (8.6)
Operating (loss)/profit (7.9) 3.1 3.4
Net financing (expense)/income (1.5) 0.2 -
(Loss)/Profit before tax (9.4) 3.3 3.4
5. Non-underlying items and alternative performance measures
Non-underlying items merit separate presentation in the consolidated income
statement to allow a better understanding of the Group's financial
performance, by facilitating comparisons with prior Periods and assessments of
trends in financial performance. Pension administration charges and
interest, significant reorganisation costs, acquisition or disposal costs,
amortisation of acquired intangible assets, profits or losses arising on
discontinued operations, significant impairments of tangible and intangible
assets and related taxation are considered non-underlying items as they are
not representative of the core trading activities of the Group and are not
included in the underlying profit measure reviewed by key stakeholders.
In the period, the Group took the opportunity to consolidate its US footprint
by closing the Cleveland site and moving its operations to the Boston site
acquired in 2024. The net book value of the acquired intangible assets and
goodwill were considered to be impaired after an assessment was done in line
with IAS36, this resulted in an £8.5m charge to non-underlying administrative
expenses.
Management also considered the property value, which was impaired to zero net
book value as the Group has neither an ongoing use or a replacement tenant for
the building. Leasehold improvements, being integral to the building, were
similarly impaired. The result of this was a £1.9m charge to non-underlying
administrative expenses.
The Group also created a provision for the remaining costs to run, close and
consolidate the Cleveland site into Boston, these costs include, but are not
limited to, payroll, bonuses and logistics. These amounted a charge of
£1.1m to non-underlying administrative expenses.
The Group elects to include costs relating to the defined benefit pension
scheme in non-underlying as the costs would be immaterial to the Group should
the scheme not exist.
6 months 6 months 12 months
to 30 June to 30 June to 31 Dec
2025 2024 2024
£m £m £m
Acquisition costs - (0.1) (3.5)
Defined benefit pension scheme administration costs (note 6) (0.9) (0.5) (1.4)
Impairment of intangible assets (8.5) - (1.0)
Amortisation of intangibles from business combinations (3.0) (0.8) (2.1)
Freyr contract termination costs - - (0.6)
Impairment of fixed assets (1.9) - -
Site closure costs (1.1) - -
Total non-underlying operating expenditure
(15.4)
(1.4)
(8.6)
Net financing income on pension scheme balances
1.0
0.7
1.4
Total non-underlying expense before tax (14.4) (0.7) (7.2)
The Group uses alternative performance measures (APM's), in addition to those
reported under IFRS, as management believe these measures enable the users of
financial statements to better assess the underlying trading performance of
the business. The APM's used include underlying operating profit, underlying
profit before tax and underlying earnings per share. These measures are
calculated using the relevant IFRS measure as adjusted for non-underlying
income/(expenditure) listed above.
The carrying amounts of goodwill are £5.7m (FY 2024: £5.7m) in respect of
Mpac Lambert (acquired in 2019), £nil (FY 2024: £7.5m) in respect of
Switchback Group (acquired in 2020), £50.8m in respect of CSi Palletising (FY
2024: £50.8m) and £10.1m in respect of Boston Conveyor & Automation (FY
2024: £10.1m) (both acquired in 2024).
6. Employee benefits
The Group accounts for pensions under IAS 19 Employee benefits. The most
recent formal valuation of the UK defined benefit pension scheme (Fund) was
completed as at 30 June 2024, which reported a surplus of £21.1m. The
principal terms of the funding agreement between the Company and the Fund's
Trustees, which is effective until 31 December 2035, but is subject to
reassessment every three years, are that the Company will continue to pay a
sum of £2.0m per annum to the scheme escrow account (increasing at 2.1% per
annum).
Formal valuations of the USA defined benefit schemes were carried out as at 1
January 2024, and their assumptions, updated to reflect actual experience and
conditions at 30 June 2025 and modified as appropriate for the purposes of IAS
19, have been applied in this set of financial statements.
Profit before tax includes charges in respect of the defined benefit pension
schemes' administration costs of £0.9m (30 June 2024: £0.5m) and a net
financing income on pension scheme balances of £1.0m (30 June 2024:
£0.7m). In respect of the UK scheme, the Group no longer makes
contributions to the scheme, but to an escrow account which can only be
accessed by the scheme under certain circumstances and is expected to be
returned to the Group when the scheme winds up. The balance of this account
was £1.2m at 30 June 2025. (30 June 2024: contributions of £1.1m).
Contributions to the US scheme totalled £0.1m (30 June 2024: £0.1m)
Employee benefits include the net pension asset of the UK defined benefit
pension scheme of £9.2m (30 June 2024: £33.0m) and the net pension liability
of the USA defined benefit pension schemes of £1.3m (30 June 2024: £1.6m),
all figures before tax.
Employee benefits as shown in the condensed consolidated statement of
financial position were:
30 June 31 Dec
2025 2024
£m £m
UK scheme
Fair value of assets 241.9 275.8
Present value of defined benefit obligations (232.7) (236.4)
Defined benefit asset 9.2 39.4
USA schemes
Fair value of assets 6.7 7.5
Present value of defined benefit obligations (8.0) (9.0)
Defined benefit liability (1.3) (1.5)
Total net defined benefit asset 7.9 37.9
7. Earnings per share
Basic earnings per ordinary share is calculated by dividing the profit or loss
attributable to ordinary shareholders by the weighted average number of
ordinary shares in issue during the period excluding shares held by the
employee trust in respect of the Company's long-term incentive arrangements.
For diluted earnings per ordinary share, the weighted average number of shares
includes the diluting effect, if any, of own shares held by the employee trust
and the effect of the Company's long-term incentive arrangements.
6 months 6 months 12 months
to 30 June to 30 June to 31 Dec
2025 2024 2024
Basic - weighted average number of ordinary shares 30,073,273 20,474,424 22,551,963
Diluting effect of shares held by the employee trust - - -
Effect of shares conditionally granted under the LTIP - - 60,486
Diluted - weighted average number of ordinary shares 30,073,273 20,474,424 22,612,449
Underlying earnings per share, which is calculated on the earnings before
non-underlying items, for the 6 months to 30 June 2025 amounted to 12.1p (6
months to 30 June 2024: 15.2p; 12 months to 31 December 2024: 35.2p).
In the 6 months to 30 June 2025 and 30 June 2024 the effect of dilution was
nil pence per share. The effect of the dilution at 31 December 2024 was 0.1
pence per share.
8. Financial risk management
The Group's financial risk management objectives and policies are consistent
with those disclosed in the financial statements for the year ended 31
December 2024.
The Group enters forward foreign exchange contracts solely for the purpose of
minimising currency exposures on sale and purchase transactions. The Group
has classified its forward foreign exchange contracts used for hedging as cash
flow hedges and states them at fair value.
9. Related parties
The Group has related party relationships with its directors and with the UK
and USA defined benefit pension schemes. There has been no material change
in the nature of the related party transactions described in note 30 of the
2024 Annual Report and Accounts.
10. Dividends
Having considered the trading results to 30 June 2025, together with the
opportunities for investment in the growth of the Company, the Board has
decided that it is appropriate not to pay an interim dividend. No dividends
were paid in 2024. Future dividend payments and the development of a new
dividend policy will be considered by the Board in the context of 2025 trading
performance and when the Board believes it is prudent to do so.
11. Half-year report
A copy of this announcement will be made available to shareholders from 23
September 2025 on the Group's website at www.mpac-group.com
(https://url.avanan.click/v2/___http:/www.mpac-group.com___.YXAxZTpzaG9yZWNhcDphOm86MjBhNjQxNWI3YTZlMTJhYWNhNzkxOGY2ZjQ1ZmZiYTQ6NjowZTllOjllN2MzN2MwMTI3Yzg3MGNhNjQ2OGE5M2U3MThjODcxMmYwYWYxNTJmNDdjY2IwOTI0MThkODE0NjhjMzgwN2Q6cDpU)
. This announcement will not be made available in printed form.
12. Future accounting policies
There are no changes anticipated to the Group's accounting policies in the
foreseeable future
INDEPENDENT REVIEW REPORT TO MPAC GROUP PLC
Conclusion
We have been engaged by Mpac Group plc ("the group") to review the condensed
set of financial statements in the half-year financial report for the six
months ended 30 June 2025 which comprise the Condensed Consolidated Income
Statement, the Condensed Consolidated Statement of Comprehensive Income, the
Condensed Consolidated Statement of Changes in Equity, the Condensed
Consolidated Statement of Financial Position, the Condensed Consolidated
Statement of Cash Flows and related notes. We have read the other information
contained in the half-year financial report and considered whether it contains
any apparent misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-year
financial report for the six months ended 30 June 2025 is not prepared, in
all material respects, in accordance with UK adopted International Accounting
Standard 34 "Interim Financial Reporting," and the requirements of the AIM
Rules for Companies.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity," issued for use in the United Kingdom.
A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International
Standards on Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 2(a), the annual financial statements of the group are
prepared in accordance with UK adopted IASs. The condensed set of financial
statements included in this half-yearly financial report has been prepared in
accordance with UK adopted International Accounting Standard 34, "Interim
Financial Reporting."
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410, however future events or conditions may cause the group to
cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-year financial report in
accordance with the AIM Rules for Companies.
In preparing the half-year financial report, the directors are responsible for
assessing the group's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of financial information
In reviewing the half-year report, we are responsible for expressing to the
group a conclusion on the condensed set of financial statements in the
half-year financial report. Our conclusion, including our conclusions relating
to going concern, are based on procedures that are less extensive than audit
procedures, as described in the Basis for conclusion paragraph of this report.
Use of our report
This report is made solely to the company's directors, as a body, in
accordance with the terms of our engagement letter dated 7 August 2024. Our
review has been undertaken so that we might state to the company's directors
those matters we have agreed to state to them in a reviewer's report and for
no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone, other than the company and the company's
directors as a body, for our work, for this report, or for the conclusions we
have formed.
PKF Littlejohn LLP
15 Westferry Circus
Statutory Auditor
Canary Wharf
London E14 4HD
23 September 2025
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