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(Sharecast News) - Mpac Group said in an update on Thursday that it expects to report full-year results in line with market expectations for 2025, with higher revenues, improving operating margins and a stabilised order book despite a backdrop of macroeconomic uncertainty.
In an unaudited trading update for the year ended 31 December, the AIM-traded group said revenues were expected to be around 170m, up from 122.4m in 2024, while underlying profit before tax was forecast to be in line with consensus expectations of 13.5m, compared with 10.5m a year earlier.
Mpac said profitability improved substantially in the second half following actions taken in the first half of the year, supported by better project margins, operational efficiencies and continued strong performance from its services teams.
The group ended the year with an order book of approximately 92.0m, broadly unchanged from the position at the half-year.
Original equipment order intake improved by around 25% in the second half compared with the first half, after a slow start to the year as customers deferred capital investment decisions amid uncertainty linked to US trade tariffs.
Mpac said it had a strong and broad-based opportunity pipeline with clear order intake targets, although the board remained cautious given ongoing uncertainty in end markets.
Net debt excluding leases increased to 47.7m at the year end, reflecting lower customer deposits following deferrals of anticipated orders in the fourth quarter.
The firm said it expected net debt to reduce through 2026, supported by the composition of the order book, the opportunity pipeline and continued focus on cost control and cash collection.
Mpac added that it continued to operate comfortably within its banking covenants.
The group said it remained well positioned in structurally growing healthcare and food and beverage markets and entered 2026 with good quote activity and an enhanced product offering following acquisitions completed in 2024.
Its board said the opening order book, prospect pipeline and actions taken during 2025 positioned the business to deliver on market expectations for the current year and beyond.
"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," said chief executive Adam Holland.
He added that decisive cost-reduction measures, alongside a strong opportunity pipeline and continued focus on cost and cash management, should support further progress in 2026.
Mpac said it expected to publish its full-year results for the year ended 31 December on 21 April.
At 1539 GMT, shares in Mpac Group were up 4.47% at 336.9p.
Reporting by Josh White for Sharecast.com.