Mpac H1 profits 'substantially above' prior year

Packaging and automation solutions provider Mpac said on Wednesday that trading throughout the first half has been in line with internal expectations, with profits for the period "substantially above" the prior year.

Mpac said it was on track to meet market expectations for the full year after year-to-date order intake remained "very strong" and revenues were expected to be roughly £61.0m for the half, in line with H223 and resulting in a June 2024 closing order book of approximately £71.0m

The AIM-listed group also highlighted that it expects full-year underlying pre-tax profits to be weighted towards the second half of the year.

Mpac added that the timing of order intake and the phasing of projects resulted in an expansion of working capital, which was expected to unwind during the course of H2, with net debt at the half year of £4.9m.

Looking ahead, Mpac said the outlook for the business remained positive and noted that it now starts H224 with a "healthy prospect pipeline and order book" as it continues to secure orders from blue chip global companies.

Chief executive Adam Holland said: "We are pleased to report that half year trading is in line with the board's expectations, leaving the Group well placed to meet full-year expectations. The group continued to gain momentum through the period and we will report a substantial increase in revenue and profitability in H1 2024 over H1 2023.

"We have successfully built upon the foundations established last year, with further commercial and operational improvements in the period delivered by our highly valued team. We are well positioned to succeed in the attractive markets in which we operate and deliver on our strategic objectives."

As of 1125 BST, Mpac shares were down 3.31 % at 502.78p.

Reporting by Iain Gilbert at Sharecast.com