Mpac Group hails profit surge as expansion strategy pays off
Packaging automation company Mpac Group has reported a jump in revenue as “sound foundations” laid in 2023 begin to pay off.
The London-listed company, which is headquartered in Coventry, saw its sales increase to £60m in the six months ending June 30, 2024, up from £52.8m in the same period last year – an increase of more than 12 per cent.
As a result Mpac’s pre-tax profit surge to £3.3m during the six months, up from £200,000 in the first half of 2023.
The group said these robust results had been driven by efforts to expand and diversify its customer base last year, with more than 30 per cent of its original equipment.
Despite strong revenue growth Mpac’s order intake dropped to £59.7m, which is four per cent lower than the same time last year but six per cent higher than in the second half of 2023.
The company said this reflected normal fluctuations in terms of when customers were choosing to make orders.
The group, which has manufacturing sites in the UK, North America, Europe and Asia, reiterated that it expected full year underlying profit before tax to be weighted towards the second half of the year.
It added that it was entering the second half of 2024 with an order book of £71.4m.
Adam Holland, Mpac CEO, said: ”I am pleased to report half year trading in line with our expectations.
“The sound foundations and momentum established in 2023 have continued into H1 2024 and we have seen substantial increases in revenue, gross margin and operating returns.
“We have made continued progress in our service support to existing customers, and in diversifying our customer base.
“I remain confident that Mpac is well positioned to take advantage of the attractive opportunities within the substantial markets in which we operate.”