Mpac Group - Trading Update points to 26% profits advance, shares 320p, TP 400p

Mark Watson-Mitchell - 15.01.2026

This morning's Trading Update from one of my old favourites, the Mpac Group (LON:MPAC), has declared that the FY25 trading performance was in line with market expectations, with improving operating margins and a stabilised order book.

The group, which is a global leader in high-speed packaging and automation solutions, expects to report revenues of approximately £170m for the full year 2025, a significant increase from £122.4m in 2024, with underlying profit before tax in line with market expectations at £13.5m.

The company's order book stabilised at around £92.0m, with a notable 25% improvement in Original Equipment order intake in the second half of 2025 compared to the first half, despite customer deferrals due to market uncertainty.

Net debt, excluding leases, rose to £47.7m due to lower customer deposits, but is anticipated to decrease in 2026.

Mpac is well-positioned for growth in 2026, driven by its pipeline and improved offerings from recent acquisitions.

Management Comment

CEO Adam Holland stated that:

"The Group has delivered full year performance in line with market expectations, against the backdrop of macro-economic uncertainty, which led to customers deferring expenditure.

We took decisive actions to reduce operating costs in the light of these near-term challenges.

While we are mindful of the ongoing uncertainty in end markets, we have a strong and broad-based opportunity pipeline with clear order intake targets.

Combined with a relentless focus on cost and cash management we expect this will allow the Group to make further progress in 2026.

Looking further ahead, we remain confident in delivering enhanced shareholder value through the Group's growth strategy, driven by innovation, operational excellence and outstanding customer service.''

Broker's View

Analyst Akhil Patel, at Shore Capital Markets, has estimates out for the year to end-December 2025 to show £170.0m revenues against £122.4m previously, with adjusted pre-tax profits of £13.4m (£10.6m), and fractionally easier earnings of 33.5p (35.2p) per share.

For the current year, he looks for £172.0m revenues, £15.1m profits and earnings of 37.5p per share.

Casting ahead, Patel estimates that the 2027 year will report some £189.0m of sales, £17.6 m of profits and 43.3p per share in earnings.

"In our view, Mpac’s strong secular growth opportunity remains unchanged and the need for greater factory productivity and efficiency-driven investments, given global trade challenges and rising costs, remains a key growth driver for Mpac’s solutions – a significant tailwind we expect to return."

My View

Over the last six months or so, the group's shares have been trading in a range from 270p to 400p, with the past two months putting them on a plateau of around 320p.

I now look for a medium-term climb to 400p plus in its share price.

(Profile 19.12.19 @ 182p set a Target Price of 235p*)

(Profile 15.01.26 @ 320p set a Target Price of 400p)