Mpac Group PLC Half- Year Trading Update (9572U)
July 18 2018 - 1:00AM
UK Regulatory
TIDMMPAC
RNS Number : 9572U
Mpac Group PLC
18 July 2018
18 July 2018
Mpac Group plc
Half- Year Trading Update
Mpac Group plc ("Mpac" or the "Company"), the global packaging
solutions group, provides an update on current trading ahead of its
unaudited interim results for the six months ended 30 June 2018 due
to be announced in September 2018.
Mpac continues to make good progress towards achieving the
Board's strategic objectives to build the foundations for future
revenue growth.
As outlined at the time of the Company's final results, Mpac
started the 2018 year with a higher order book and order intake
than at the start of 2017. The Board believes the order book is
also of higher quality and lower project complexity than previously
as a result of the strategic objectives being put in place.
Despite this positive start to the year and whilst we continue
to grow revenues, it has become apparent to the Board the business
climate has softened considerably as the year progressed
attributable in part to general economic as well as Brexit related
uncertainty, leading to customers deferring machinery investment
decisions. The Board believes these contracts will be delivered in
future financial years.
Mpac's financial performance during the first half has also been
impacted by two significant, technically challenging legacy
projects which will now not be completed until the end of the 2018
financial year. Management are working closely with customers to
resolve these issues and to conclude these projects. However, the
resulting cost overruns will have a material impact on the
Company's profits for the current financial year.
Notwithstanding these developments, the implementation of the
stated strategic objectives has allowed the Company to achieve some
significant efficiency gains in the first six months of the
financial year. The benefits have been reduced by the time taken to
change the location and management in our Mississauga facility in
Canada, which has now been completed. In response to these factors,
management has also taken further cost saving measures.
As a consequence of the above developments, the Board
anticipates that whilst revenue for the full year is expected to be
in line with market expectations, the closing order book will be
lower as a result of market softening and profits are currently
expected to be around GBP1.2m below current market
expectations.
Tony Steels, Chief Executive, commented:
"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, we are well
capitalised and are fully focused on resolving the current issues
and continuing with our strategic plan"
For further information, please contact:
Mpac Group plc Tel: +44 (0) 2476 421100
Tony Steels, Chief Executive
Will Wilkins, Group Finance Director
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
(Nominated Advisor & Broker)
Andrew Potts, Peter Steel - Corporate Finance
James Stearns - Corporate Broking
Hudson Sandler Tel: +44 (0) 20 7796 4133
Nick Lyon
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No. 596/2014.
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END
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