Strong performance in line with expectations

In a Trading Update for the year to 31 December 2023, Mpac Group reports that revenue and (adj.) profit before tax in H2 were substantially above the first half, whilst margins for the year returned towards normal levels. As a result the Group expects FY23 (adj.) PBT to be in line with market expectations and sees FY23 performance as providing a sound platform for continued growth in FY24.

Whilst Mpac’s shares have recovered somewhat over recent weeks, they still trade on a 32% discount to the market cap-weighted average of their peers and we maintain our Fair Value of 485p/ share, indicative of a FY24 EV/EBITDA multiple of 7.5x.