Coronavirus Update

Mpac Group Plc - Half Year Report

This content has been sourced from: https://www.investegate.co.uk/mpac-group-plc/rns/h...

Mpac Group plc

(''Mpac'', "Company" or "Group")

Mpac, the global packaging and automation solutions Group, today announces its unaudited results for the six months to 30 June 2020

Resilient performance with strong cash generation in headwind of the COVID-19 pandemic

Financial Highlights

Order book at 30 June 2020 up 14% compared to June 2019 to £45.4m (2019: £39.9m)

H1 2020 order intake only 6% below comparable period despite several projects deferred due to COVID-19 pandemic

Group revenue of £36.8m (2019: £45.8m), with a 29% decline in Original Equipment revenues partially offset by a 28% growth in Service revenues

Underlying profit before tax of £2.5m (2019: £4.5m)

Underlying earnings per share of 11.0p (2019: 21.3p)

Statutory profit before tax of £1.4m (2019 £2.9m)

Basic earnings per share of 6.0p (2019: 12.7p)

Focused working capital management leading to an increase in net cash to £22.5m (30 June 2019: £9.6m; 31 December 2019: £18.0m)

Operational and Strategic Highlights

Agility and ingenuity demonstrated by the global leadership to provide essential service support

Increased use of technology to deploy digital service solutions, enable digital marketing and to develop the innovation roadmap

Prior establishment of 'Make Service a Business' has benefited the Group with good progress made in growing Service business, despite travel restrictions. Remote Factory Acceptance Tests, prior to shipment, are now the norm

Benefits accrued from the Group's focus to operate as a single entity under the 'One Mpac' business model with the implementation of common business processes and systems enabling the Group to effectively operate despite travel restrictions

Tony Steels, Chief Executive, commented

" I am really pleased with the way in which the business responded to the COVID-19 pandemic, demonstrating agility, ingenuity and resilience which contributed to positive financial results and excellent cash generation in the first half of 2020.  It further demonstrates the good progress and, in some cases, accelerated the positive impact and value of the strategic objectives we have been working on.  During the pandemic we have taken steps to preserve cash, to reduce discretionary spend and focus on our digital marketing presence and on new product development.  These measures will place the Group in a strong position going into the second half of the year to leverage the essential and COVID-19 resilient Healthcare and Food and Beverage growth markets which we supply.  We are well placed, serving markets with good underlying demand and therefore the Board believes that the Group's long-term prospects remain positive''.