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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Mpac Group Plc | MPAC | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 5.00 | 0.98% | 515.00 | 08:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 515.00 | 515.00 | 515.00 | 510.00 |
| Industry Sector |
|---|
| INDUSTRIAL ENGINEERING |
| Top Posts |
|---|
Posted at 23/10/2024 12:58 by techno20 Mine allotted too via Hargreaves.Johnrxx99. Worth subscribing to Research Tree to get the full report, but summary comment is below… Mpac announced the bolt-on acquisition of BCA on 18th September for £13.4m (6.6x historic EV/EBITDA multiple) On 1st October, it announced the transformative acquisition of CSi for c. £49m (8.0x historic EV/EBITDA multiple), including deal costs. To fund the latter deal, a £30m equity placing was undertaken with resolutions passed at a General Meeting on 18 October. The deals will give Mpac end-to-end turnkey capability, and broaden the product range, customer base and geographic reach. Cross-selling and cost synergies should be material but are not factored into our forecasts. We see FY26E sales doubling on FY23, two years ahead of management’s target. Adj. EBIT increases by 105% from £11.2m pre-deals in FY24E to £23.3m in FY26E. Adj. EPS increases by 40% in FY26E vs 38.7p pre-deals in FY24E, reflecting higher interest costs and share count (based on the equity raise at 400p). Postdeal FY24E net debt/EBITDA (ex-leases) of 1.8x falls to 0.1x by FY26E, benefiting from CSi’s negative working capital model. Post-deal TP 800p, move from u/r to Buy. |
Posted at 09/10/2024 12:55 by 74tom Far worse than I anticipated, does anyone actually believe that retail shareholders applied for £16m worth of shares?! (£1m / 0.0625) Surely if that was the case then they should have closed the offer early, i.e. once they had passed the £5m mark?It's a stretch to believe that more than 30% of the entire retail base of MPAC check their shares on a daily basis, nevermind get round to subscribing for the offer. Shocking treatment of PI's as per usual. |
Posted at 02/10/2024 08:06 by someuwin Mpac ready to rise after second acquisitionTwo transformational acquisitions in two weeks are yet to be priced in by markets by Simon Thompson |
Posted at 02/10/2024 07:25 by johnrxx99 74tom, so with Mpac, those CSi customers will be diluted. One can assume those customers where part of the attraction. |
Posted at 02/10/2024 07:11 by 74tom Thought this was a decent deal, then read at the bottom of the Shore note that 58% of 2023 revenue was from Pepsi"While client concentration will vary on an annual basis, the top five represent 80% of FY23A revenue. Across all clients, CSi has secured 156 orders in FY23A. Noting, PepsiCo, CSi’s largest client accounts for 58% of FY23A revenue but is driven from 47 separate orders (ranging from £8.5k to £6.8m across OE and Service). However, PepsiCo is expected to account for c.28% of order intake in FY24F. Thus, CSi has been actively diversifying its client base in FY24F – Figure 55." Jan-Aug 24 projected customer order intake has 60% or orders from 2 customers, 71% of 2023 revenue was from 2 customers... I can't see MPAC disclosing their concentration, but CSi seems excessive given how many clients they work with? |
Posted at 01/10/2024 12:29 by edmonda "Major acquisition and equity raise. Fair Value raised to 865p" - new research report now available: Mpac has announced an offer to acquire CSi Palletising, a specialist in the design, manufacture and installation of end-of-line automation and palletising solutions, for a maximum consideration of €56.0m (£50.0m). Subject to approval at a General Meeting, the acquisition will be financed through the issue of equity to raise up to £30.0m (gross) at 400p per share, and drawdown from Mpac’s debt facilities. The addition of CSi continues Mpac’s track record of growth augmented by major acquisitions; we estimate that by FY26 the Group will have achieved its 5-year goal of doubling FY23 revenue and profit, ahead of plan. Upon completion, the deal will be significantly earnings accretive, with our revenue and adj. EBITDA estimates for FY25 and FY26 all rising by at least 40%. Accordingly, we materially raise our Fair Value per share to 865p (from 550p). |
Posted at 18/9/2024 06:37 by edmonda "Earnings enhancing acquisition broadens capabilities" - new research report available here: Mpac is acquiring the entire issued share capital of Boston Conveyor & Automation, Inc., (“BCA”), a US-based supplier of robotic automation and conveyor equipment for the Food, Life Sciences and general industry sectors, for a total of US$17.0m (£12.9m). The purchase comprises US$11.0m in cash, sourced from the Group Revolving Credit Facility, plus US$6.0m from the issue of Mpac shares. The Group’s lender has agreed to increase the RCF by £5 million to £25 million, ensuring that the Group will continue to have a strong balance sheet with significant undrawn borrowing facilities available to fund its ongoing development and working capital. The acquisition of BCA adds a full range of primary and secondary packaging systems expertise, expands and augments Mpac's positioning in its core Food & Beverage, Healthcare and Clean Energy sectors, and offers opportunities to grow both Original Equipment sales and Service revenue. The acquisition provides a significant growth opportunity into EMEA through Mpac’s sales presence, a geography previously unaddressed by BCA. The acquisition of BCA is immediately earnings-accretive to the Group, adding 2% to FY24 revenue (pro rata) and 8% and 10% respectively to our FY25 revenue and (adj.) EBITDA outlook. We take the opportunity to introduce forecasts for FY26 and raise our fair value to 550p/share, indicative of a FY25 EV/EBITDA of 6.7x, which remains at a significant discount to the peer group average of 10.6x. |
Posted at 16/9/2024 12:55 by backmarker Analysis of the business and its prospects suggests that the shares are worth buying so one might expect buyers to be dominating.But if the share price is going down then sellers are dominating. Why?I can understand a lack of buyers; there are always lots of opportunities competing for investment. But it's more difficult to work out why existing investors would be deserting a good-looking investment.My guess is that it's a combination of the prospect of even better opportunities, maybe gold miners, and the fact that there's a profit to take if you invested in the last year.Plus there is the appearance of some cyclicality in the share price movement, limited news flow, and as yet no dividend (though that's understandable as the company needs its cash as a war chest for acquisitions and working capital as it's a growth phase).That's my guess. But that doesn't lessen the attractiveness of MPAC. I'm still looking for 600p within a year. |
Posted at 10/7/2024 06:40 by edmonda Mpac Group: H1 Trading Update: positive momentum continuesn a Trading Update for the six months to 30 June 2024, Mpac reports strong order intake of c.£60m and a closing first half order book of c.£71m. Consequently, the Group expects to post H1 24 revenue of c.£61m, significantly ahead year-on-year, being 16% above H1 23 (£52.8m). A consequence of the strength of first half order intake is, as anticipated, an expansion of working capital, required to provision inventory for new projects. This is expected to unwind in the second half alongside the gathering pace of performance towards the close of the year. The estimated H1 revenue of c.£61m represents 50.8% of our FY24 target (£120m), whereas at the same stage in FY23 (£52.8m), H1 revenue represented 46.2% of the full year outcome (£114.2m). Having raised both our estimates and fair value in March, we maintain our current outlook. Despite a strong run, Mpac’s share price is currently trading at 5% below its one-year high and the outlook indicates that the Group continues to offer compelling value. Our Fair Value of 530p/share is indicative of a FY25 EV/EBITDA multiple of 7.1x and PE of 12.1x, respectively 33% and 28% below the market cap weighted average of a group of Mpac peers, on multiples of 10.6x EV/EBITDA and 16.9x PE. Link to research note: |
Posted at 26/4/2024 07:07 by bigbigdave 26 April 2024Mpac Group plc ("Mpac") Award of £1.2m order for a 1.5MWh solid state battery assembly line Mpac Group plc (AIM: MPAC), a global leader in engineering and automation providing assembly and packaging solutions, announces that it has received a £1.2m order to deliver a SiSTEM pilot battery assembly line secured by funding from the Automotive Transformation Fund (ATF), partnered with Ilika, Agratas and The UK Battery Industrialisation Centre ("UKBIC"). Mpac will work closely with Ilika plc and the UKBIC to design, build and commission a 1.5MWh solid state battery ('SSB') assembly line capable of delivering Ilika's Goliath SSB prototype large-format pouch cells to automotive OEMs and Tier 1 suppliers. The project now has the additional support of Agratas who will play a pivotal role using their manufacturing expertise to inform the design of the SSB stacking and assembly equipment and to identify additional processes to be incorporated into its standard Lithium-ion Batteries (LIB) line to enable the production of SSB's. This collaboration with UK institutions, battery innovators and high-volume manufacturers highlights the value that Mpac provides to the industry and further cements its ambitions within the sector. The SSB assembly line is expected to be fully operational at Ilika's facility by the end of Q2 2025. This project provides further growth within the Clean Energy sector for Mpac, utilising its expertise in assembly across multiple market sectors to provide innovative solutions for battery cell manufacturing. The ATF is a funding programme created to support large-scale industrialisation accessed through the Advanced Propulsion Centre (APC) and delivered in collaboration with the Department for Business and Trade (DBT) and Innovate UK. Up to £850 million of funding will be invested in developing a high-value end-to-end electrified automotive supply chain in the UK. The fund is highlighted as an important mechanism to reach targets in the UK Government's 10-Point Plan for a green industrial revolution and its Transport Decarbonisation Plan. |
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