In a Trading Update for the first half to 30 June 2023, Mpac reports that trading was in line with management expectations, reiterating - as stated at the AGM in May - that performance remains second half weighted, supported by the strength of the order book and projects underway. The Group closed H1 with a strong balance sheet and positive net cash.
Mpac notes that order intake for the year to date is significantly ahead at £62.4m compared to £32.8m a year earlier, with the H1 closing order book at £78.4m, +25%YoY above the start of FY23 (£62.7m). The performance of (higher margin) Service operations has also been strong, whilst the Group is able to report that supply chain issues that impacted completion of Original Equipment projects have now largely eased. This adds confidence for second half performance and a return to normalised margins: our FY23 gross margin outlook is 28.9%, for FY24 31.3% (FY19: 29.3%; FY20: 29.0%). We expect net debt of £4.7m to revert towards a positive FY23 net cash position of £7.5m.
On site commissioning of the assembly line at FREYR’s Battery Customer Qualification Plant in Norway continues.
Our FY24 outlook remains 11%YoY revenue growth and 35.0%YoY growth in (adj.) EBITDA with fair value for Mpac seen at 485p/share, indicative of a FY24 EV/EBITDA multiple of 7.9x.
