TIDMMPAC
RNS Number : 8802T
Mpac Group PLC
30 March 2021
30 March 2021
AIM: MPAC
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018
Mpac Group plc
("Mpac", "the Company" or "the Group")
Mpac, the global packaging and automation solutions Group, today
announces its results for the 12 months to 31 December 2020
Resilient financial performance, successful acquisition and
strong year end order book
Financial Highlights
-- Robust 2020 financial performance given the pandemic which
demonstrates the resilient nature of Mpac's business
-- H2 order intake GBP53.4m (H1: GBP30.5m) contributing to
strong closing order book of GBP55.5m (2019: GBP52.2m)
-- Group full year revenue GBP83.7m (2019: GBP88.8m)
-- 2020 H2 revenue 27% above H1 as customer investment returned to pre-pandemic levels
-- Underlying profit before tax of GBP6.3m (2019: GBP7.5m)
-- Underlying earnings per share of 31.4p (2019: 39.5p)
-- Statutory profit before tax of GBP2.9m (2019: GBP5.4m)
-- Basic earnings per share of 16.3p (2019: 29.7p)
-- Cash of GBP15.5m (2019: GBP18.9m)
-- The Board has decided not to recommend payment of a final dividend (2019: nil)
Operational and Strategic Highlights
-- Covid-19 resilience, agility and flexibility demonstrated by
all employees ensured Mpac continued to provide essential customer
service support
-- H2 Original Equipment quote activity, prospect pipeline and
order intake returned to growth compared to pre-pandemic levels
-- Prior investment in expansion of commercial sales and
marketing footprint in the Americas leveraged market strength
-- Successful acquisition of Switchback Group, Inc. - continues
to trade ahead of management expectations and integration
progressing well
-- Implementation of common business processes and successful
initial roll out of Group ERP system enabling effective operations
under 'One Mpac', our single entity business model
-- Agility to adapt, use of remote servicing technology and
development of digital service solutions delivered good strategic
progress in the Service business
-- Exciting portfolio of new products launched in the year -
platform based full solution for healthcare sector and case packing
range for food and beverage sector
-- Restructuring and integration of the Coventry operations into the Tadcaster site
Tony Steels, Chief Executive, commented:
"2020 has been a year like no other with the whole of society
facing unprecedented challenges. Our priorities in the period were
to ensure our facilities were made Covid-19 secure and to develop
remote solutions to support our customers, while driving forward on
our strategic aims with a full agenda, including the successful
acquisition of Switchback. I am extremely pleased with the way in
which the business responded to the pandemic. All employees and
leadership deserve recognition for demonstrating agility,
ingenuity, and proactivity, which helped to deliver another year of
good progress on our strategy, sound financial performance,
excellent cash generation and the strong, high quality, closing
order book which we take into 2021.
Mpac is positioned to serve resilient end markets with long term
growth potential leading to continuous customer demand. Supported
by our sizeable and increasingly diverse order book we remain well
placed, serving Covid-19 resilient markets which have good
underlying demand. 2021 has started well across all regions and
after taking into consideration the challenge of predicting the
impact of the pandemic the Board believes that the Group's
long-term prospects remain positive".
For further information, please contact:
Mpac Group plc Tel: +44 (0) 2476
Tony Steels, Chief Executive 421100
Will Wilkins, Group Finance Director
Shore Capital (Nominated Adviser & Broker)
Advisory Tel: +44 (0) 20 7408
Patrick Castle 4050
Edward Mansfield
Sarah Mather
Broking
Henry Willcocks
Hudson Sandler Tel: +44 (0) 20 7796
Nick Lyon / Nick Moore 4133
OPERATING REVIEW
Tony Steels
I am pleased to present my report as Chief Executive of Mpac
Group plc. I am sure that 2020 will be remembered as an extremely
challenging year for the whole of society. When I reflect on how
Mpac collectively, and our employees individually, responded to the
pandemic, the speed and agility with which the Group pivoted to
supporting our customers alongside the actions taken to ensure that
the business continued to operate efficiently, with minimal
disruption, I am proud to say that I consider 2020 a successful
year for Mpac.
As we reported at the half year, the wellbeing of our employees
and their families is our primary concern. Throughout the year,
travel and social distancing restrictions have limited the
opportunity for business development, to complete on-site service
work and to install and commission equipment, the impact of which
was mitigated by our investment in enabling technologies to provide
remote customer support. While all sites have continued to operate,
there have been periods of reduced operational levels to protect
the wellbeing of our employees, resulting in full-year revenue and
operating profit falling below that achieved in 2019.
In the second half of 2020, business development of Original
Equipment ("OE") improved significantly, with revenue 19% above the
comparable period in 2019. This return to growth contributed
towards the good quality and diverse closing order book of 2020
(GBP55.5m), 6% above the opening 2020 order book (GBP52.2m).
Service revenues grew to GBP19.6m (2019: GBP19.4m), a particularly
pleasing performance given on-going travel restrictions hampering
the development of our field service and installation revenue
streams.
We made significant progress in our key strategic initiatives,
with the broadening of our product portfolio, which included the
launch of full-line solutions for customers in the healthcare
sector, and the implementation of new operating business systems.
This contributed to the Group producing a robust financial
performance and cash generation, underpinned by a high-quality
order book.
The successful acquisition of Switchback Group, Inc.
("Switchback") in September 2020 was a further significant
milestone for the Group. The acquisition represents a compelling
fit with Mpac's strategic intent of being a market leader in the
provision of full-line packaging solutions for the pharmaceutical,
healthcare and food and beverage sectors. Switchback, based near
Cleveland, Ohio, USA is a market leader in the supply of packaging
machinery to the high-growth craft beverage industry. It is
benefiting from the shift towards recyclables, aluminium cans, and
cardboard packaging. Critically, the acquisition also accelerates
our expansion into the Americas market and provides a physical
location in the USA for the Group to further leverage our Langen
and Lambert brands in the region. Despite the ongoing travel
restrictions good progress has been made with the integration of
Switchback into the Group, with the rebranding to Mpac Switchback
complete, the first commercial synergies with other Group
businesses have been secured and the business is performing ahead
of management expectations.
The unprecedented impact of the Covid-19 pandemic during 2020
resulted in a pause to the progress that we were making in our
growth strategy, however we demonstrated our continued ability to
execute acquisitions alongside our agility to adapt our resources
to accelerate the use of digital technologies to engage with our
customers and ensure we continued to provide high levels of support
and service. The fundamentals remain unchanged and we believe that
Mpac is on track to meet our long-term goals by leveraging the
resilient pharmaceutical, healthcare and food and beverage sectors
with our full-line solution offering and delivering an enhanced
service proposition with our Industry 4.0 suite of products.
Further progress has been made in developing our range of
Industry 4.0 solutions which are designed to offer customers
opportunities to increase their Overall Equipment Effectiveness
(OEE) through automatic control of the production process. Our
innovation roadmap was designed to deliver an extensive range of
features and solutions, including OEE monitoring, predictive
maintenance, video instructions and facilitating connectivity via
multiple devices through an enhanced Human Machine Interface. In
the absence of physical trade shows to demonstrate these solutions,
in 2020 we initiated a series of virtual trade shows, supported by
media campaigns which have been very well received and allowed us
to connect with a larger number of customers in a more targeted
way.
Management's focus remains on delivering organic growth,
extending our commercial reach to new customers with new products
and services, supported by a comprehensive market-led development
roadmap. Alongside this, our search for further complementary
acquisition targets continues. The acquisition of Switchback and a
greater physical presence in the critical US market represents
another important step in delivering our strategy, augmented by
deploying our innovation initiatives, which are focused on
developing full solution product lines with a wider range of
standard modules, for our target sectors of pharmaceutical,
healthcare, and food and beverage.
I am excited about the next phase for the Group and am extremely
pleased with our accomplishments so far. Despite the challenging
investment cycle caused by the pandemic, I believe that we are
firmly on track to deliver our long-term strategic plans and to
take advantage of our enhanced position in growth markets.
Trading
The trading performance in 2020 was resilient given the backdrop
of wider market uncertainty and travel restrictions. Overall order
intake for the Group of GBP83.9m was down 4% on 2019, a 14%
reduction on a like-for-like basis which excludes the impact of the
Switchback acquisition. The Group experienced a significant upturn
in order intake in the second half of the year when travel
restrictions began to be eased prior to the second wave of the
pandemic.
The Group enters 2021 with a customer diverse order book of
GBP55.5m, GBP3.3m above the opening order book for 2020. We remain
vigilant to project execution risk and are confident that the 2020
closing order book can be delivered at forecast margins. The timing
of conversion of prospects into orders continues to vary based on
our customers' investment plans and thus remains difficult to
predict. Conversion rates were stronger in the second half of the
year providing increased confidence that the impact of delayed
customer investment on the Group has eased, resulting in the
encouraging order book entering 2021.
Group revenues of GBP83.7m were down 6% compared with the
previous year (10% below 2019 on a like-for-like basis). Original
Equipment revenue of GBP64.1m (2019: GBP69.4m), supported by a
robust performance in the Americas and growth in EMEA and the food
and beverage sector, was down 8% compared to the prior year.
Service revenue grew marginally by 1% to GBP19.6m, which is
encouraging given the circumstances.
I am pleased to report underlying profit before tax for the year
of GBP6.3m (2019: GBP7.5m), with a statutory profit before tax of
GBP2.9m (2019: GBP5.4m).
Following the acquisition of Switchback and continued investment
in new product development to support future growth, the Group
retained a cash position of GBP15.5m (2019: GBP18.9m), providing
the financial resources required to invest in the strategic
initiatives which will deliver profitable growth in future
years.
Strategic developments
Further progress has been made during 2020 to deliver our
five-year strategic plan. The global pandemic caused a pause in the
progress we had made delivering our growth plan. However, we
believe an extension of our US presence and access to new markets
in the region following the Switchback acquisition, plus the
exciting roll-out of new products and good progress on our
integrated business systems project, means Mpac remains on track to
meet our broader strategic objectives. Furthermore, the growth
opportunities from the markets in which we operate are aligned to
our long-term goals.
I believe that it is due to the implementation of our strategic
plans and continued focus on increasing the scale and diversity of
the Group that the business was able to deliver a robust level of
order intake, revenue, and underlying profitability during a
challenging year in which customers in most regions and markets
were re-evaluating their investment decisions.
Restructuring
During the year, the Group took the necessary restructuring
actions associated with the integration of the business activities
of our Coventry operation into our Tadcaster site. This move will
deliver annual savings going forward and improve our customer
experience. The enlarged site has the greater scale, scope, depth
of knowledge and know-how to support customers and will help to
deliver profitable growth as we ensure financial performance across
the Group meets or exceeds expectations. The Group is committed to
ensuring that all aspects of the organisation support the future
growth of the business and targets continue to be met.
Acquisition strategy
The Board continues to actively seek and evaluate potential
acquisition opportunities. The focus is finding businesses that
will enhance our customer proposition in automation and packaging
solutions, by extending our product range and our access to a
broader range of customers in our target markets, adding value to
the Group.
Moving forward
We continue to pursue our strategic goals, which were
recalibrated during the year, and build on the strong foundations
made towards achieving the three strategic priorities: Going for
Growth, Make Service a Business and Operational Efficiency. Further
information on these strategic priorities is provided in the
Strategic Update.
Purpose and sustainability
The senior leadership team developed a purpose statement for
Mpac:
'To create automation ecosystems that enhance manufacturing, to
help businesses adapt and grow. Advancing the world with
manufacturing solutions that make a real difference'.
This statement, together with our sustainability vision, where
we promise to do our part in protecting the planet's future,
partnering with our customers to support their reduction in
packaging materials usage and the effective adoption of
biodegradable and recyclable materials, will form an integral part
of our strategy in the future. Mpac's evolving innovative solutions
offer our customers opportunities to achieve their sustainability
goals. Mpac encourages internal activities which support the
culture and adoption of continuous improvement in
sustainability.
Business review
The Group aims to achieve annual double-digit percentage revenue
growth over the medium-term, culminating in delivering an improved
return on sales, targeted at 10%. To support this intent, we manage
the business in two parts; Original Equipment and Service, and
across three regions; Americas, EMEA and Asia.
Revenue by region was split as follows; Americas GBP46.7m (2019:
GBP56.8m), EMEA GBP31.3m (2019: GBP24.8m) and Asia GBP5.7m (2019:
GBP7.2m).
Revenue by sector was split as follows: food and beverage
GBP34.8m (2019: GBP19.8m), healthcare GBP45.0m (2019: GBP66.1m) and
pharmaceutical GBP3.9m (2019: GBP2.9m).
Individual OE contracts, and to a lesser extent in the Service
business, can be large. Accordingly, a few significant orders can
have a disproportionate impact on the growth rates seen in
individual sectors from year to year.
Original Equipment
OE order intake of GBP62.4m (2019: GBP66.2m) was down 6%
compared with the prior year (18% lower on a like-for-like basis).
OE revenues of GBP64.1m (2019: GBP69.4m) were down 8% compared with
the prior year (12% on a like-for-like basis).
Mpac's focus on the Covid-19 resilient pharmaceutical,
healthcare and food and beverage sectors continued to drive our
success, with a strong performance in the food and beverage sector
and growth over 2019 in EMEA regions. Revenue generated in the
Americas was GBP36.2m (2019: GBP45.8m). In the prior year Americas
revenue included the impact of a one-off repeat line order received
in 2018 from a customer in the healthcare sector. Order intake and
revenue in the region in 2020 was generated from a more diverse and
sustainable customer base.
EMEA revenue in the period was GBP23.7m (2019: GBP17.6m).
Revenue in the region is generated by our Lambert and Langen
product ranges, which reported growth over the prior year.
Asia revenue, predominantly associated with orders from
customers in the food and beverage sector, was GBP4.2m (2019:
GBP6.0m). The region was the first to be impacted by the pandemic
and retained travel restrictions for the majority of the calendar
year, reducing opportunities for business development.
Overall order prospects remain strong, especially from customers
in the healthcare sector, and activity levels across the OE
business remain high and the business is well positioned moving
into 2021.
Service
Order intake for the Service division was broadly unchanged in
2020 at GBP21.5m (2019: GBP22.6m). Growth in order intake in the
EMEA region offset a reduction in order intake in the Americas.
Revenue in 2020 of GBP19.6m, was up GBP0.2m on the prior year,
again driven by growth in EMEA. As with the trend for OE, Service
revenue in the Americas in 2019 benefited from activity with one
large customer in the healthcare sector whereas 2020 revenue has
been generated from a diverse customer base.
Americas revenue in the year was GBP10.5m compared to GBP11.0m
in 2019. EMEA revenue in the year was GBP7.6m, up GBP0.4m (2019:
GBP7.2m). Asia revenue in the year was GBP1.5m (2019: GBP1.2m).
Coronavirus
Since the outbreak of the pandemic and throughout the year, the
priority for Mpac was to secure the health, safety and wellbeing of
our employees while continuing to provide essential support for our
customers.
The implementation of global travel restrictions had an impact
on the timing of closing of new OE orders, on project execution and
on-site service revenue generation. However, this impact has been
partially mitigated through the ingenuity of our employees in the
use of digital technology which contributed to Service revenue
growth over the prior year. Throughout the crisis we continued to
secure new orders and no orders were cancelled as a result of the
pandemic.
It continues to be difficult to predict the length and depth of
the impact of the pandemic and therefore management continue to
critically appraise discretionary spend and investment plans, while
seeking to protect our talented workforce and being careful not to
compromise the long-term prospects of the Group. Early in the
pandemic, a 'Fast Recovery' plan was implemented which helped to
ensure that Mpac was well positioned to take advantage of
opportunities when the market returns to pre-pandemic levels of
activity. This plan included the launch of a new website, virtual
exhibitions for customers to demonstrate the range of newly
developed products and offering customers digital solutions for
remote machine acceptance and servicing. Cash preservation remained
our primary focus, which helped to fund the acquisition of
Switchback and to deliver year end cash of GBP15.5m, significantly
above earlier management expectations.
Looking forward, we have identified three risks associated with
the pandemic and with the emergence of new variants of the virus
for which we believe we have mitigations in place. First is the
risk associated with weakening customer confidence leading to
delayed OE order intake. This is mitigated by our presence in
resilient sectors, across a wide geographic range and a diverse
customer base. The second risk identified is an outbreak of
infection of the virus at a Group facility, resulting in production
delays while the facility is deep cleaned, and employees
quarantined. Our strict employee and visitor monitoring protocols
alongside social distancing and cleaning practices provide
confidence that the impact is sufficiently mitigated and, due to
the nature of our business, project execution status can be
recovered. The third risk is a disruption to our supply chain with
demand exceeding supply, coupled with disruption to transportation.
Our global supply chain strategy ensures secure alternative means
of supply have been established for all critical parts.
The Board of Mpac continues to monitor the situation carefully
across our customer, supplier, and employee base.
Strategic update
Our strategy focuses on three key initiatives to drive
growth:
Going for Growth - Offering customers comprehensive "Automation
Ecosystems" solutions in our target markets.
Make Service a Business - Providing customers with a
comprehensive portfolio of service products to ensure they maximise
their return on investment.
Operational Efficiency - Operational excellence and flexibility
of supply chain to increase responsiveness to investment
cycles.
Going for Growth
Our five-year strategic plan is to develop the business through
organic growth in our target growth sectors of pharmaceutical,
healthcare and food and beverage. To enable this, we created a
global sales approach under our single entity model, 'One Mpac',
offering innovative automation and packaging machinery solutions
from our extensive portfolio of engineered modules. In 2019, at the
'mid-point' of the strategic period, the objectives were validated
with the support of a third-party assessment of our approach. At
the time, the overall growth targets were considered to be
accessible and, underpinned by the execution of our technology and
innovation roadmap, were expected to accelerate progress in
achieving our strategic aims in the growth sectors of
pharmaceutical, healthcare and food and beverage. While the impact
from the spread of Covid-19 has resulted in a pause to the previous
growth trajectory, the medium-term fundamentals of the markets in
which we operate remain valid.
The acquisition of Switchback adds both immediate opportunities
for commercial synergies and provides the Group with a facility in
the US from which Mpac can leverage the Lambert, Langen and
Switchback product range to local customers. The Switchback and
Lambert acquisitions provide opportunities to cross sell automation
and packaging solutions to common customers, and our commercial
teams from across the Group are generating qualified opportunities
to leverage the Group's extended product, solutions and technology
offering. Cross selling of the existing product and Service
offering to new and existing customers is a clear target, ensuring
we better understand their evolving needs and extend our customer
proposition with a broader solution approach. During 2020 we
recruited a Chief Commercial Officer to lead this process on a
global basis. Deployment of our commercial excellence programme to
our sales team will assist in delivering the commercial synergies
and further training modules aimed at increasing our win ratio and
expanding our customer base through our geographic reach.
The Group has undertaken a review of our market approach and
digital platform customer proposition and as a result, Mpac
launched a new Group branded website (www.mpac-group.com) and
aligned its commercial approach to the wider Mpac brand websites.
Further investment in our online presence will continue in 2021.
Resources have also been deployed into social media platforms,
resulting in a significant uptick in followers and lead
generation.
Innovation remains the key to long term sustainable growth.
During the year we developed and launched a full-line solution for
automation and packaging in the healthcare sector, which is already
generating orders. In the food and beverage sector we developed
equipment to expand our end of line packaging offering, alongside
innovations focused on improved machine performance together with
the Industry 4.0 enabled technology.
Make Service a Business
Our customers have an extensive, globally installed base which
they expect to run continuously at high levels of overall equipment
effectiveness. This requirement increased during the pandemic as
the need for equipment to run with less user intervention became
more critical. The trends towards Industry 4.0 and its enabling
technological platforms support our strategy to work with our
customers to ensure they maximise their return on investment
throughout the life cycle of the equipment. We offer comprehensive
Service, monitoring and maintenance programmes to maximise uptime
and minimise cost of production through our global Service
business.
In 2020 and due to the pandemic, the requirement from customers
for digital technology and remote support offerings increased
significantly and Mpac was able to address this requirement and
offer solutions for customers which ensured that any lost 'on site'
Service revenues were mitigated with alternative remote revenue
streams. Investment in enabling technologies to facilitate remote
service support for our customers ensured that Mpac was well
positioned to respond and adapt quickly to the pandemic.
The focus remains to ensure that the Service business teams work
closely with every customer to understand their current and future
needs and to tailor contracted service programme agreements aimed
at customer productivity improvements. Working across our strategic
lines, our Excellence in Service programme is an initiative focused
on quick response and high spare part availability for our global
customers, which has already increased Service revenue.
Growth of our Service business will be supported by new OE
product launches during the year, the technology within which will
enable customers to optimise their production processes and improve
product quality through greater equipment connectivity, data
extraction and interpretation, as well as enable Mpac to deliver a
wider range of more planned service.
Operational Efficiency
Our consistent aim is to be a customer focused, responsive and
flexible Group achieved through organisational excellence,
underpinned by a global supply chain and supported by a single
business model, 'One Mpac'. The cross utilisation of resources is
now the norm as opposed to the exception.
In October 2020, we completed the first significant milestone of
our project to harmonise our global Enterprise Resource Planning
(ERP) landscape and to leverage the work previously completed in
deploying common engineering design platforms to our manufacturing
sites with the successful deployment at our facility in the
Netherlands. This was followed by deployment to our facility in
Canada in early 2021.
Mpac business model 'One Mpac'
We have operations around the world and industry-leading
technologies. None of that is possible, of course, without the
abilities and commitment of our people. Having a highly skilled,
technical workforce in place and ensuring everyone can contribute
at their highest level and grow in their position over the long
term enables us to win as a team. Through 'One Mpac', we are
developing leaders, while engaging and empowering our global
workforce. With strong leaders, engaged people and common
processes, we strengthen the organisation and create value for our
customers and shareholders.
Outlook
Despite the challenges of 2020, we continued to make significant
progress in the execution of our strategy, and we remain well
positioned, serving the Covid-19 resilient end markets with
long-term growth potential. The pandemic will take time to be
brought under control and while this process continues investment
decisions will inevitably come under more scrutiny as businesses
assess the economic impact.
The prior investments in innovation and operational excellence
combined with the group's agility to adapt ensures we are well
placed to continue our positive progress.
The Group has both the financial and managerial resource
available to continue to develop the business, with the prime focus
being on organic growth, leveraged with our global manufacturing
and service reach and the continued development of new technology
and products alongside an expanded Service offering to our
customers. We continue to evaluate potential complementary
acquisition opportunities.
Our rich history of innovative packaging machinery and
automation solutions align well with customer demand and we are in
an enviable position to serve our customers with efficient,
connected, and reliable solutions, delivered via our 'One Mpac'
business model.
We entered 2021 with a stronger order book compared to the
previous year and have been successful in further extending the
diversity of customers and product ranges. 2021 has started well
across all regions and the Group's future prospects remain
positive.
Tony Steels
Chief Executive
FINANCIAL REVIEW
Will Wilkins
Revenue and operating results
Group revenue in the year was GBP83.7m (2019: GBP88.8m). Revenue
in the Original Equipment ("OE") division was GBP64.1m (2019:
GBP69.4m) and revenue in the Service division was GBP19.6m (2019:
GBP19.4m). Gross profit was GBP24.3m (2019: GBP26.0m) and
underlying selling, distribution and administration costs were
GBP17.8m (2019: GBP18.3m).
Underlying operating profit was GBP6.5m (2019: GBP7.7m).
Underlying profit after tax was GBP6.3m (2019: GBP7.8m) and
statutory profit for the period was GBP3.3m (2019: GBP5.9m).
Non-underlying items
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 costs, restructuring costs and acquisition related charges
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 before tax measure reviewed by key
stakeholders.
Reconciliation of underlying profit before tax to profit before
tax
2020 2020 2019 2019
GBPm GBPm GBPm GBPm
Underlying profit before tax 6.3 7.5
Non-underlying items
Defined benefit pension scheme (0.2) -
- past service cost GMP equalisation
Defined benefit pension scheme - 1.1
- US pension past service gain
Defined benefit pension scheme (0.6) (0.8)
- other costs and interest
Reorganisation costs (0.5) (0.3)
Acquisition costs and acquired
intangible asset amortisation -
Lambert (1.4) (1.9)
Acquisition costs and acquired
intangible asset amortisation -
Switchback (0.7) -
Provision in respect of discontinued
operations
Non-underlying items total - (3.4) (0.2) (2.1)
---------------------------------------- -------- -------- -------- --------
Profit before tax 2.9 5.4
---------------------------------------- -------- -------- -------- --------
Restructuring
The Group undertook a limited number of restructuring
initiatives during the year, which were primarily focused on
reshaping and integrating the UK operations into one facility with
the aim of improving operational efficiency and reducing
overheads.
Interest and taxation
Net finance income was GBPnil (2019: GBP0.1m). Tax on underlying
profit before tax was GBPnil (2019: GBP0.3m credit) due to
utilisation of unrecognised deferred tax balances. The tax credit
on the Group's profit before tax was GBP0.4m (2019: GBP0.5m).
Dividends
Having considered the trading results for 2020 and the
opportunities for investment in the growth of the Group, together
with the continued uncertainty surrounding the impact of the
pandemic, the Board has decided that it is not appropriate to pay a
final dividend. No interim dividend was paid in 2020. Future
dividend payments will be considered by the Board in the context of
2021 trading performance and when the Board believes it is prudent
to do so.
Cash, treasury and funding activities
Cash at the end of the year was GBP15.5m (2019: GBP18.9m). Net
cash inflow before reorganisation was GBP12.8m (2019: GBP5.1m),
after a decrease in working capital of GBP7.5m (2019: GBP2.1m
increase) and defined benefit pension payments of GBP3.0m (2019:
GBP2.9m). Reorganisation and acquisition costs of GBP0.9m (2019:
GBP1.0m) were paid in the year. Net taxation payments were GBP0.7m
(2019: GBP1.0m received). Capital expenditure on property, plant
and equipment was GBP1.2m (2019: GBP1.4m), capital expenditure on
assets under construction was GBPnil (2019: GBP0.6m) and
capitalised product development expenditure was GBP1.8m (2019:
GBP0.3m).
The acquisition of Switchback resulted in an immediate net cash
outflow of GBP9.8m. Deferred consideration of up to GBP1.1m is
expected to fall due in equal sums over the next two years. It is
pleasing to report that the acquired business has performed well in
2021 and at a run-rate ahead of the criteria required for full
payment of the deferred consideration.
The Group entered into a three-year funding agreement with HSBC
in 2019, which provided the Group with a GBP10.0m revolving credit
facility to support future growth. This facility also provides a
number of other opportunities to more proactively manage the
Group's cash and ensure that the Group is well placed to react to
opportunities, both organic and acquisition related, as they
arise.
The risk associated with the pandemic and the spread of Covid-19
was the primary new significant risk that the Group is exposed to.
There were no other significant changes during the year in the
financial risks, principally currency risks and interest rate
movements, to which the business is exposed, and the Group treasury
policy has remained unchanged. The Group does not trade in
financial instruments and enters into derivatives (mainly forward
foreign exchange contracts) solely for the purpose of minimising
currency exposures on sales or purchases in other than the
functional currencies of its various operations.
Prior year adjustments
Following an internal review of Mpac's compliance with IFRS 15
and the FRC's third thematic review of IFRS 15, published 24
September 2020, the Group has restated certain balances previously
reported, in accordance with IAS 8, to align the treatment of
contract assets, contract liabilities, contract fulfilment assets
and work in progress recognised in relation to contracts, more
closely to the demands of IFRS 15. These balances do not change any
of the key metrics used by the Group, with gross profit, operating
profit, profit before and after tax, earnings per share, net
current assets and retained earnings remaining unchanged. These
adjustments do not affect the future anticipated performance of the
Group.
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 IAS 19 valuation of the UK scheme's assets and liabilities
was undertaken as at 31 December 2020 and was based on the
information used for the funding valuation work as at 30 June 2018,
updated to reflect both conditions at the 2020 year end and the
specific requirements of IAS 19. The smaller US defined benefit
schemes were valued as at 31 December 2020, using actuarial data as
of 1 January 2020, updated for conditions existing at the year end.
Under IAS 19, the Group has elected to recognise all actuarial
gains and losses outside of the income statement.
The IAS 19 valuation of the UK scheme resulted in a net surplus
at the end of the year of GBP14.0m (2019: GBP20.4m), which is
included within the Group's and Company's assets. The value of the
scheme's assets at 31 December 2020 was GBP440.9m (2019: GBP423.6m)
and the value of the scheme's liabilities was GBP426.9m (2019:
GBP403.2m). The scheme was largely protected from the sharp
reduction in the main discount rate by the liability matching
strategy agreed between the trustee and the Company, which was
implemented early in 2019 and continues to evolve as the scheme
matures.
The IAS 19 valuations of the US pension schemes showed an
aggregated net deficit of GBP3.0m (2019: GBP3.1m), with total
assets of GBP10.1m (2019: GBP10.4m).
During the year, the Company made payments to the UK defined
benefit scheme of GBP1.9m (2019: GBP1.9m) in respect of the deficit
recovery plan. A contribution of GBP0.8m (2019: GBPnil), in
accordance with the profit-sharing arrangement in the schedule of
contributions, was also paid. In 2019 GBP0.1m was paid following
the receipt of proceeds from the disposal of the I&TM business,
being 10% of net proceeds. Payments of GBP0.3m (2019: GBP0.9m) were
made to the US schemes in the year.
In 2019, the UK scheme's triennial valuation as at 30 June 2018
was completed, with the reported deficit reducing to GBP35.2m (30
June 2015: GBP69.6m). The contributions remained at the same level,
but the recovery period reduced to six years and one month (30 June
2015: 14 years and 2 months). Further details are shown in note
4.
Equity
Group equity at 31 December 2020 was GBP44.4m (2019: GBP47.5m).
The movement arises mainly from the profit for the period of
GBP3.3m, a net actuarial loss in respect of the Group's defined
benefit pension schemes of GBP6.6m and currency translation losses
on foreign currency net investments of GBP0.2m, all figures are
stated net of tax where applicable.
Will Wilkins
Group Finance Director
CONSOLIDATED INCOME STATEMENT
2020 2019
---------------------------------------- ----------------------------------------
Non-underlying Non-underlying
(note (note 3)
Underlying 3) Total Underlying GBPm Total
Note GBPm GBPm GBPm GBPm GBPm
Revenue 2 83.7 - 83.7 88.8 - 88.8
Cost of sales (59.4) - (59.4) (62.8) - (62.8)
------------ ---------------- -------- ------------ ---------------- --------
Gross profit 24.3 - 24.3 26.0 - 26.0
Distribution expenses (6.8) - (6.8) (7.2) - (7.2)
Administrative
expenses (9.9) (3.6) (13.5) (10.3) (2.4) (12.7)
Other operating
expenses (1.1) - (1.1) (0.8) - (0.8)
------------ ---------------- -------- ------------ ---------------- --------
Operating profit 2, 3 6.5 (3.6) 2.9 7.7 (2.4) 5.3
Financial income - 0.3 0.3 - 0.4 0.4
Financial expenses (0.2) (0.1) (0.3) (0.2) (0.1) (0.3)
------------ ---------------- -------- ------------ ---------------- --------
Net financing
(expense)/income (0.2) 0.2 - (0.2) 0.3 0.1
------------ ---------------- -------- ------------ ---------------- --------
Profit before tax 6.3 (3.4) 2.9 7.5 (2.1) 5.4
Taxation - 0.4 0.4 0.3 0.2 0.5
------------ ---------------- -------- ------------ ---------------- --------
Profit for the
period 6.3 (3.0) 3.3 7.8 (1.9) 5.9
============ ================ ======== ============ ================ ========
Earnings per ordinary share
Basic 5 16.3p 29.7p
Diluted 5 16.2p 29.4p
============ ================ ======== ============ ================ ========
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2020 2019
GBPm GBPm
Profit for the period 3.3 5.9
-------- --------
Other comprehensive income/(expense)
Items that will not be reclassified
to profit or loss (8.8) (0.3)
Actuarial (losses)/gains
2.2 0.1
Tax on items that will not be reclassified
to profit or loss
-------- --------
(6.6) (0.2)
-------- --------
Items that may be reclassified subsequently
to profit or loss
Currency translation movements arising (0.5) (0.1)
on foreign currency net investments
0.5 1.1
Effective portion of changes in fair
value of cash flow hedges
-------- --------
- 1.0
-------- --------
Other comprehensive (expense)/income
for the period (6.6) 0.8
-------- --------
Total comprehensive (expense)/income
for the period (3.3) 6.7
======== ========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Capital
Share Share Translation redemption Hedging Retained Total
capital premium reserve reserve reserve earnings equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Balance at 1 January
2019 5.0 26.0 1.1 3.9 (0.8) 5.4 40.6
---------- ---------- -------------- ------------ ---------- ----------- ---------
Profit for the period
- - - - - 5.9 5.9
Other comprehensive
(expense)/income for
the period - - (0.1) - 1.1 (0.2) 0.8
---------- ---------- -------------- ------------ ---------- ----------- ---------
Total comprehensive
(expense)/income for
the period - - (0.1) - 1.1 5.7 6.7
---------- ---------- -------------- ------------ ---------- ----------- ---------
Equity-settled share 0.3 0.3
based transactions - - - - -
Purchase of own shares (0.1) (0.1)
---------- ---------- -------------- ------------ ---------- ----------- ---------
Total transactions
with owners, recorded
directly in equity - - - - - 0.2 0.2
========== ========== ============== ============ ========== =========== =========
Balance at 31 December
2019 5.0 26.0 1.0 3.9 0.3 11.3 47.5
========== ========== ============== ============ ========== =========== =========
Profit for the period
- - - - - 3.3 3.3
Other comprehensive
(expense)/income for
the period - - (0.5) - 0.5 (6.6) (6.6)
---------- ---------- -------------- ------------ ---------- ----------- ---------
Total comprehensive
(expense)/income for
the period - - (0.5) - 0.5 (3.3) (3.3)
Equity-settled share - - - - - 0.4 0.4
based transactions
Purchase of own shares - - - - - (0.2) (0.2)
---------- ---------- -------------- ------------ ---------- ----------- ---------
Total transactions
with owners, recorded
directly in equity - - - - - 0.2 0.2
---------- ---------- -------------- ------------ ---------- ----------- ---------
Balance at 31 December
2020 5.0 26.0 0.5 3.9 0.8 8.2 44.4
========== ========== ============== ============ ========== =========== =========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
2020 2019
Note GBPm - Restated
GBPm
Non-current assets
Intangible assets 27.4 16.9
Property, plant and equipment 5.1 5.6
Investment property 0.8 0.8
Right of use assets 4.0 4.7
Employee benefits 14.0 20.4
Deferred tax assets 1.8 1.7
--------- ------------
53.1 50.1
--------- ------------
Current assets
Inventories 3.5 3.2
Trade and other receivables 32.2 28.0
Current tax assets 0.8 0.4
Cash and cash equivalents 15.5 18.9
--------- ------------
52.0 50.5
Current liabilities
Lease liabilities (0.8) (0.9)
Trade and other payables (41.1) (30.9)
Current tax liabilities (0.4) (0.7)
Provisions (1.4) (1.3)
--------- ------------
(43.7) (33.8)
--------- ------------
Net current assets 8.3 16.7
--------- ------------
Total assets less current liabilities 61.4 66.8
--------- ------------
Non-current liabilities
Interest-bearing loans and borrowings 7 (0.9) (0.9)
Employee benefits 4 (3.0) (3.1)
Deferred tax liabilities (6.8) (8.8)
Lease liabilities (3.4) (3.9)
Deferred contingent consideration (2.9) (2.6)
--------- ------------
(17.0) (19.3)
--------- ------------
Net assets 44.4 47.5
========= ============
Equity
Issued capital 5.0 5.0
Share premium 26.0 26.0
Reserves 5.2 5.2
Retained earnings 8.2 11.3
--------- ------------
Total equity 44.4 47.5
========= ============
CONSOLIDATED STATEMENT OF CASH FLOW
2020 2019 -
Note GBPm Restated
GBPm
Operating activities Operating profit
Non-underlying items included in operating 2.9 5.3
profit 3.6 2.4
Amortisation Depreciation Other non-cash 0.3 0.2
items Pension payments Working capital 1.1 1.9
movements: - (increase)/decrease in 0.4 0.3
inventories - (increase) in contract (3.0) (2.9)
assets - (increase)/decrease in trade
and other receivables - increase in 0.2 (0.2)
trade and other payables - increase (1.7) (2.4)
in provisions - increase/(decrease) (0.6) 4.7
in contract liabilities 4.1 2.8
0.1 0.4
5.4 (7.4)
--------- ----------
Cash flows from continuing operations 12.8 5.1
before reorganisation Acquisition
and reorganisation costs paid (0.9) (1.0)
--------- ----------
Cash flows from operations Taxation 11.9 4.1
(paid)/received
(0.7) 1.0
--------- ----------
Cash flows from operating activities 11.2 5.1
--------- ----------
Investing activities Proceeds from
sale of property, plant and equipment
Capitalised development expenditure 0.2 0.2
Acquisition of assets under construction (1.8) (0.3)
Acquisition of property, plant and - (0.6)
equipment Net cash flow on acquisition/payment
of deferred consideration
(1.2) (1.4)
(10.3) (10.6)
--------- ----------
Cash flows used in investing activities (13.1) (12.7)
--------- ----------
Financing activities Interest paid
Purchase of own shares Principal elements
of lease payments
(0.2) (0.1)
(0.2) (0.1)
(0.9) (1.0)
--------- ----------
Cash flows used in financing activities (1.3) (1.2)
--------- ----------
Net decrease in cash and cash equivalents 6 (3.2) (8.8)
Cash and cash equivalents at 1 January 18.9 27.9
Effect of exchange rate fluctuations (0.2) (0.2)
on cash held
--------- ----------
Cash and cash equivalents at 31 December
2020 15.5 18.9
========= ==========
NOTES TO ANNOUNCEMENT
1. General information
The Group's accounts have been prepared in accordance with
International Accounting Standards in conformity with the
requirements of the Companies Act 2006 that were effective at 31
December 2020.
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31 December 2020
or 2019. Statutory accounts for 2019 have been delivered to the
Registrar of Companies. The auditors have reported on the 2020 and
2019 statutory accounts; their reports were (i) unqualified, (ii)
did not include references to any matters to which the auditors
drew attention by way of emphasis without qualifying their reports
and (iii) did not contain statements under section 498 (2) or (3)
of the Companies Act 2006.
2. Operating segments
Segment information
12 months to 31 12 months to 31
Dec 2020 Dec 2019
OE Service Total OE Service Total
GBPm GBPm GBPm GBPm GBPm GBPm
------- -------- ------- ------- -------- -------
Revenue
Americas 36.2 10.5 46.7 45.8 11.0 56.8
EMEA 23.7 7.6 31.3 17.6 7.2 24.8
Asia Pacific 4.2 1.5 5.7 6.0 1.2 7.2
------- -------- ------- ------- -------- -------
Total 64.1 19.6 83.7 69.4 19.4 88.8
======= ======== ======= ======= ======== =======
Gross profit 24.3 26.0
Selling, distribution
& administration (17.8) (18.3)
------- -------
Underlying operating 6.5 7.7
profit
Unallocated non-underlying (3.6) (2.4)
items included in
operating profit
------- -------
Operating profit/(loss) 2.9 5.3
Net financing income - 0.1
------- -------
Profit before tax 2.9 5.4
======= =======
Geographical information
Revenue
(by location of customer)
-------------------------------------------
2020 2020 2019 2019
GBPm % GBPm %
UK 9.7 12 10.1 11
Europe (excl. UK) 19.2 23 13.7 16
Africa & Middle East 2.8 3 1.1 1
USA 34.5 41 52.0 59
Americas (excl. USA) 12.3 15 4.6 5
Asia Pacific 5.2 6 7.3 8
------ ----- ------ -----
83.7 100 88.8 100
====== ===== ====== =====
3. Non-underlying items
2020 2019
GBPm GBPm
Acquisition costs and deferred consideration (0.5) (1.0)
interest
Amortisation of acquired intangible assets (1.6) (0.9)
Provision in respect of discontinued operations - (0.2)
US defined benefit pension scheme - past - 1.1
service gain from options exercise
UK defined benefit pension scheme - Past (0.2) -
service cost for GMP equalisation
Defined benefit pension scheme administration (0.6) (0.8)
costs and interest
Reorganisation costs (0.5) (0.3)
------- -------
Total non-underlying expense before tax (3.4) (2.1)
------- -------
4. Employee benefits
The Group accounts for pensions under IAS 19 Employee benefits.
A formal valuation of the UK defined benefit pension scheme (Fund)
was carried out as at 30 June 2018. The principal terms of the
deficit funding agreement between the Company and the Fund's
Trustees, which is effective until 31 July 2024, but, is subject to
reassessment every 3 years are as follows:
-- the Company will continue to pay a sum of GBP1.9m per annum
to the Fund (increasing at 2.1% per annum) in deficit recovery
payments;
-- if underlying operating profit (operating profit before
non-underlying items) in any year is in excess of GBP5.5m, the
Company will pay to the Fund an amount of 33% of the difference
between the annual underlying operating profit and GBP5.5m, subject
to a cap on underlying operating profit of GBP10.0m for the purpose
of calculating this payment; this part of the agreement will fall
away in 2021 if the funding deficit is above certain levels;
and
-- payments of dividends by Mpac Group plc will not exceed the
value of payments being made to the Fund in any one year.
Formal valuations of the USA defined benefit schemes were
carried out as at 1 January 2020, and their assumptions, updated to
reflect actual experience and conditions at 31 December 2020 and
modified as appropriate for the purposes of IAS 19, have been
applied.
Profit before tax includes charges in respect of the defined
benefit pension schemes' administration costs of GBP0.9m (2019:
GBP1.2m) and a net financing income on pension scheme balances of
GBP0.3m (2019: GBP0.4m). In respect of the UK scheme, the Group
paid deficit recovery contributions of GBP1.9m (2019: GBP1.9m). A
contribution of GBP0.8m (2019: GBPnil), in accordance with the
profit-sharing arrangement in the schedule of contributions, was
also paid. In 2019 GBP0.1m was paid following the receipt of
proceeds from the disposal of the I&TM business, being 10% of
net proceeds. Contributions to the US scheme totalled GBP0.3m
(2019: GBP0.9m)
Employee benefits include the net pension asset of the UK
defined benefit pension scheme of GBP14.0m (2019: GBP20.4m) and the
net pension liability of the USA defined benefit pension schemes of
GBP3.0m (2019: GBP3.1m), all figures before tax.
5. Earnings per share
Basic earnings per ordinary share is based upon the profit for
the period of GBP3.3m (2019: GBP5.9m) and on a weighted average of
19,955,307 shares in issue during the year (2019: 19,968,000). The
weighted average number of shares excludes shares held by the
employee trust in respect of the Company's long-term incentive
arrangements.
Underlying earnings per ordinary share amounted to 31.4p for the
year (2019: 39.5p) and is based on underlying profit for the period
of GBP6.3m (2019: GBP7.8m), which is calculated on profit before
non-underlying items.
6. Reconciliation of net cash flow to movement in net funds
2020 2019
GBPm GBPm
Net decrease in cash and cash equivalents (3.2) (8.8)
------- -------
Change in net funds resulting from cash (3.2) (8.8)
flows
(0.2) (0.2)
Translation movements
------- -------
Movement in net funds in the period (3.4) (9.0)
Opening net funds 13.2 27.0
Movement in lease liabilities/Recognised 0.6 (4.8)
on adoption of IFRS 16
------- -------
Closing net funds 10.4 13.2
======= =======
7. Analysis of net funds
2020 2019
GBPm GBPm
Cash and cash equivalents - current assets 15.5 18.9
Interest-bearing loans and borrowings (0.9) (0.9)
- non-current liabilities
Lease liabilities (4.2) (4.8)
-------- --------
Closing net funds 10.4 13.2
======== ========
8. Business combination
On 9 September 2020 Mpac acquired the entire issued share
capital of Switchback Group, Inc. ("Switchback"), a provider of
packaging machinery and automation solutions to the food and
beverage and consumer healthcare sectors, for an initial
consideration of US$13.3m (GBP10.2m) (subject to adjustment for
working capital movements, which have been settled in 2021 at
US$0.3m (GBP0.2m)) with a further US$2.0m (GBP1.6m) subject to
Switchback achieving certain earn-out criteria, which the Group
anticipates will be met in full. It is expected that the
acquisition will be immediately earnings enhancing.
Details of the purchase consideration, the net assets acquired,
and goodwill are as follows:
GBPm
Purchase consideration
Cash paid on acquisition 10.2
Working capital adjustment (paid in 2021) 0.2
Contingent consideration (see below) 1.1
-------------
Total purchase consideration 11.5
-------------
The assets and liabilities recognised as a result of the
acquisition are as follows:
Fair value
GBPm
Cash and cash equivalents 0.4
Property, plant and equipment 0.1
Brand 0.6
Customer relationships 0.7
Machine designs 1.1
Order backlog 0.2
Inventories 0.4
Receivables 1.4
Contract assets 0.3
Payables (0.3)
Contract liabilities (0.8)
Deferred tax on intangible assets (0.5)
-----------------
Net identifiable assets acquired 3.6
Add: goodwill 7.9
-----------------
11.5
=================
The goodwill is attributable to Switchback's strong position and
profitability in the healthcare and food and beverage sectors,
particularly in craft brewing, expected to arise after the Group's
acquisition of the new subsidiary.
The amortisation of the acquired intangible assets in the period
in relation to Switchback totalled GBP0.3m and is included in
non-underlying items in the income statement.
Acquisition-related costs
Acquisition-related costs of GBP0.4m are included in
administrative expenses in non-underlying items in the income
statement.
Contingent consideration
The contingent consideration arrangement requires the Group to
pay the former owners of Switchback up to US$1m (GBP0.7m) in each
of the next two years, with a minimum payment of US$0.5m in each if
Switchback's annual adjusted EBITDA is at least $1.1m and 50% of
the excess over US$1.1m, up to $2.1m.
There is no minimum amount payable.
The fair value of the contingent consideration arrangement of
GBP1.1m was estimated by calculating the present value of the
future expected cash flows. The Group's forecasts identify that the
maximum deferred consideration will be payable. Under IFRS 3, the
company is required to discount the contingent consideration at a
rate reflective of the risk of the amounts not falling due. This
results in a discount to the total amount of GBP0.1m, which is
expected to be amortised over the period to which the amounts fall
due through the interest charge. The interest during the period was
GBPnil. The deferred consideration payable to ongoing employees of
Switchback is GBP0.3m, which is treated as additional remuneration
and not included in the valuation of deferred consideration under
IFRS3.
Acquired receivables
The fair value of trade and other receivables is GBP1.4m and
includes trade receivables with a fair value of GBP1.4m. The gross
contractual amount for trade receivables due is GBP1.4m which is
expected to be collectable in full.
Revenue and profit contribution
The acquired business contributed revenues of GBP3.3m and net
profit of GBP0.6m to the Group for the period from 9 September 2020
to 31 December 2020. If the acquisition had occurred on 1 January
2020, consolidated revenue and consolidated profit after tax for
the year ended 31 December 2019 would have been GBP91.3m and
GBP4.4m respectively.
9. Prior period adjustment
Following an internal review of Mpac's compliance with certain
technical details of IFRS 15 and the FRC's third thematic review of
IFRS 15, published 24 September 2020, the Group has restated
certain balances previously reported, in accordance with IAS 8, to
align the treatment of contract assets, contract liabilities,
contract fulfilment assets and work in progress recognised in
relation to contracts more closely to the demands of IFRS 15. The
Group has not received any communication from the FRC on this or
any other matter. These balances do not change any of the key
metrics used by the Group, with gross profit, operating profit,
profit before and after tax, earnings per share, net current assets
and retained earnings remaining unchanged. These adjustments do not
affect the future anticipated performance of the Group.
The effect of the adjustments results in a slight timing
difference to the recognition of revenue and cost of sales in equal
amounts in the income statement. The effect in 2019 was reviewed
and found to be immaterial so no restatement of the 2019 income
statement has been presented. There is no impact upon gross profit
or any other key metric as a result of these adjustments in the
income statement under any circumstances.
The adjustments made are:
2019 as Adjustment 2019 restated 2018 as Adjustment 2018 restated
reported GBPm GBPm reported GBPm GBPm
GBPm GBPm
---------- ----------- -------------- ---------- ----------- --------------
Work in progress
(Inventories) 5.0 (3.9) 1.1 1.7 (0.9) 0.8
Contract assets
(Trade & other
receivables) 4.7 1.7 6.4 5.5 (1.2) 4.3
Contract fulfilment
asset (Trade &
other receivables) - 1.2 1.2 - 1.0 1.0
Contract liabilities
(Trade & other
payables) (5.8) (5.9) (11.7) (11.6) (2.5) (14.1)
Prepayments and
accrued income
(Trade &
other receivables) 0.5 3.2 3.7 3.9 1.8 5.7
Accruals and deferred
income (Trade &
other payables) (8.4) 3.7 (4.7) (6.5) 1.8 (4.7)
Effect on current - -
assets and statement
of financial
position total
10. Annual Report and Accounts
Shareholders will be notified, on or around 1 April 2021 of the
availability of the Annual Report and Accounts, together with the
Company's Notice of Annual General Meeting ("AGM"), via a
Regulatory Information Service announcement. Copies of the
documents will be available on the Group's website at
www.mpac-group.com. Shareholders that have elected to receive a
hard copy of the Annual Report and Accounts, together with the
Notice of AGM will receive them shortly after the Easter weekend.
Details of arrangements for voting at the AGM will also be notified
to shareholders at the same time. The AGM will be held at 12 noon
on 5 May 2021 at Mpac Lambert, Station Estate, Tadcaster, LS24 9SG.
Due to Government guidelines on Covid-19, the AGM will be held with
the minimum attendance required to form a quorum. Shareholders will
not be permitted to attend the AGM in person but are encouraged to
appoint the Chair of the meeting as their proxy so that their vote
can be represented and counted.
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END
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