For the six months to 30 June 2021 Mpac Group reported a strong recovery in both orders, +69%YoY, and revenue, +20%YoY, as a result of which we have raised our FY21 revenue outlook from £95.0m to £97.5m (+16.4%YoY) and for FY22, from £100.0m to £105.0m. We have also raised our fair value per share estimate from 600p to 660p.
Mpac’s high-speed packaging and automation systems are increasingly in demand in the key market segments it serves – healthcare, food & beverage and pharmaceuticals – as these industries adjust to the demands of environmentally-friendly packaging and efficient production processes. The Group’s recent (July 27th) tie-up with FREYER Battery for the prototype volume production of lithium-ion battery cells has added a fourth vertical with significant growth potential and environmental credentials.
At the interim the Group reported progress on unifying its widely-distributed operations with initiation of a global ERP system following deployment of unified engineering, CRM and project management systems under the ‘One Mpac’ initiative. This strategy is aligned with the development of ‘Industry 4.0’ process by its clients, including full digital replication of systems, robotics, extension of operational life and upgrades, and enhanced interfaces. H1 21 results demonstrate progress on three fronts: strong demand; expansion of markets (US) and verticals (clean energy); and progress on strategic initiatives such as ‘One Mpac’.