MPAC blames 'Brexit related uncertainty' for faltering order book

MPAC Group shares plummeted more than 30% on Wednesday after the company said its closing order book for the year was now forecast to come in approximately £1.2m below expectations.

The AIM-traded packaging solutions firm said in a half year trading update that economic issues and “Brexit related uncertainty” had caused customers to defer machine investment decisions.

At the beginning of the year the company had projected an order book of “higher quality and lower project complexity”.

Instead, MPAC reported that its progress is being hampered by two “technically challenging” projects which cannot be completed until the end of the financial year, which will have a “material impact” on company profits.

Chief executive Tony Steels said: "I am disappointed that the momentum built in the previous year has been slowed due to the current business environment and investment decisions taking longer to conclude. We continue to put in place the strategic objectives to deliver long term revenue growth. The fundamentals of our business remain strong."

Revenue for the full year is still projected to be in line with expectations as the company has achieved a number of strategic objectives, such as the change in location and management of its Mississauga facility in Canada.

MPAC Group’s shares were down 33.64% at 145.00p at 0847 BST.