Mpac Dividends - MPAC

Mpac Dividends - MPAC

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Mpac Group Plc MPAC London Ordinary Share GB0005991111 ORD 25P
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 528.00 08:00:00
Open Price Low Price High Price Close Price Previous Close
528.00 528.00 528.00 528.00 528.00
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Industry Sector

Mpac MPAC Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

shaker44: Tiger, IC has big write up on macfarlane.not dissimilar to mpac. Any views? I know you are close to mpac
edmonda: There is some scepticism that the best engineering companies could consistently expand the top line at 10%+ organically, whilst delivering 10%+ EBIT margins over the economic cycle. This rarely happens, but due to astute foresight, attention to detail & almost flawless execution, we think {{linkedin_mention(urn:li:organization:75780|Mpac Group plc)}} has every chance of breaking the mould. Helped not only by its 100% exposure to the expanding healthcare, food/beverage and pharmaceuticals industries, but also the secular tailwinds of Ecommence, Industry 4.0, ageing populations, premiumisation, reshoring, biodegradable/recyclable materials and consumer convenience. Elsewhere there are other exciting prospects. Not least in craft beers (re post £10m Switchback acquisition in Sept’20), alongside designing state-of-the-art packaging equipment to manufacture Covid tests and/or vaccine vials, which could add further juice. Therefore irrespective of the recent price appreciation – we believe there’s still plenty to go for. Lifting our valuation from 445p to 600p/share, yet equally acknowledging that if Mpac can achieve it’s “10+10” target, then the stock would rightly deserve at least a market multiple, driving it to possibly >£10 by 2023.
bigbigdave: Looks pretty good to me in the face of Covid MPAC from Equity Development: Lifting our valuation from 445p to 600p/share, yet equally acknowledging that if Mpac can achieve it’s “10+10” target, then the stock would rightly deserve at least a market multiple, driving it to possibly >£10 by 2023.
bigbigdave: No, date changed.........reckon caught a few out selling this morning. 10 March 2021 Mpac Group plc Notice of Results Update Mpac Group plc, a global leader in high-speed packaging and automation solutions, confirms that it will announce its results for the year ended 31 December 2020 on Tuesday 30 March 2021. This is a slight delay to the previously announced date and has been requested by its auditors, as a result of the ongoing logistical challenges in concluding an audit of a global business while adhering to remote working practices as a result of the COVID-19 pandemic.
arregius: Mpac Group PLC - Notice of Results Update #MPAC @MpacGroupplc Results 30 March requested by the auditors.
suetballs: A buy note from interactive investor: It tends to pay to be alert to companies guiding ahead of expectations, especially in this challenging environment. Not only does it imply well-honed operations, but also such stocks have scarcity value. AIM-listed Mpac (LSE:MPAC), a specialist provider of high-speed packaging machines, has issued a pre-close update in respect of its 2020 results. This suggests higher profit as a result of better-than-expected margins in the fourth quarter. Revenues are also resilient given “Mpac serves essential healthcare, food and beverage markets, deploying digital technology to mitigate travel restrictions despite the continued headwinds from the pandemic”. Be aware of a long history This is the old Molins group, which originally made cigarette machines in the early 20th century. Then, as the tobacco industry matured, from the 1980s it diversified into packaging machinery in the hope of raising its price-to-earnings (PE) ratio. This was typically 8x, as tobacco was in decline. Sentiment shifts and operational issues meant the stock had volatile times, and it was possible occasionally to lock in exceptional yields. But it was a chequered history, and after disposal of its tobacco machinery side the group was re-named Mpac in early 2018. The small companies showing strength in the face of Covid-19 The Week Ahead: JD Sports, Persimmon, Tesco On fundamentals, the stock could be described as a quality cyclical based on Mpac serving major multinationals such as 3M (NYSE:MMM), Nestle (SIX:NESN), GlaxoSmithKline (LSE:GSK), AstraZeneca (LSE:AZN), Unilever (LSE:ULVR), and Kellogg's (NYSE:K)’s – to name just a few. Yet the financial track record (see table) suggests there is much yet to be proven. Capital equipment demand is also essentially geared to the business cycle. If hopes persist that vaccines will effectively scotch Covid-19 by springtime – as seen on Wall Street this week - then investors will continue to dig out perceived cyclicals as an alternative to the highly-valued growth plays that benefited last year. The spoiler would be if vaccines’ roll-out proves less effective versus new strains. This sentiment party can easily halt, and another economic downturn could still damage Mpac’s prospects. Yet new aspects of identity may tempt buyers On a chart view, the stock’s identity depends on timeline. Over four years, there is actually a growth trend – with some volatility – from 50p. You could say this is the market respecting a better-honed operation taking shape, as well as its potential. That the stock’s attaining a 475p high in response to the update is justified by momentum taking shape. Whereas looking back nearly 20 years, it traded up to 400p and de-rated - especially in 2004, with a circa 40p low around the 2009 crisis. I can recall hopes for the packaging side gaining traction as long ago as the early 1990s, so you might say it is no great track record how nearly 30 years later, at a 475p high, Mpac is capitalised only at £83 million. Yet 2019 was quite a transformational year, when the £15 million acquisition of Lambert Automation – supplying the medical and consumer healthcare markets – was made and integrated, which alters the group’s substance. It enables delivery of complete solutions including design and integration of packaging systems – such as for factory automation and process innovation. FTSE 100: where will the index finish in 2020? Are you saving enough for retirement? Our calculator can help you find out The 2020 numbers are set to benefit from last September’s acquisition of Switchback Group, a US supplier of packaging to the food, drink and healthcare markets – where trading has been ahead of expectations “and the first commercial synergies with other businesses within the group have been secured”. There is also a time-honoured lesson how smaller companies with well-established positions, whose equity is rated modestly by the market, become takeover targets. Modestly rated It is possible to view this stock as having an attractive price/earnings to growth – or PEG – ratio, given expectations are for strong performance in 2021 as the acquisitions boost performance. I am cautious to assume one consensus forecast I have seen – of a circa 50%+ advance in normalised 2021 earnings per share (EPS) to 37.4p based on £7.6 million net profit. But unless vaccines fail and there is another global down-dip then I would pencil in a base-case 20% earnings growth scenario this year – to the low 30p area for normalised EPS. The update sounds as if we can anticipate operating margin growth from about 6% to at least 7%, hardly exciting, but decent. The 2021 order book edges up to £55.5 million Relative to £55.4 million at end-2019 it is proverbially described as “strong,”; but obviously lacks growth. I also wonder at the like-for-like comparison after September’s circa $15 million (£11 million) acquisition of Switchback, which achieved $14.2 million revenue in 2019. It is as if some of Mpac’s operations have seen a comparative decline in their order books. As to the effects of the pandemic, the firm says: “Our customers remain active and we continue to win original equipment and service orders with robust demand, particularly in healthcare and the Americas.” With more than 80% of revenue generated outside the UK, the stock offers currency diversification for the post-Brexit era. This may continue to weigh on sterling until there is better proof. Management says it has invested to ensure agility and positioning to exploit higher market activity when it resumes – for example brand development, virtual exhibitions for customers, investment in senior commercial leadership and digital solutions. So, despite the order book hardly looking exciting, there are reasons to be positive. Possibly the food packaging side can benefit from the shift to more home working (away from canteens and buying from outlets). Other boosts could be healthcare packaging for Covid-19 test kits and vaccines. Mpac Group - financial summary Year end 31 Dec 2014 2015 2016 2017 2018 2019 Turnover (£ million) 87.4 87.0 41.5 53.4 58.3 88.8 Operating margin (%) 4.8 3.3 -7.0 8.6 -13.0 6.0 Operating profit (£m) 4.2 2.9 -2.9 4.6 -7.6 5.3 Net profit (£m) -0.3 -4.1 -0.6 1.6 -6.0 5.9 EPS - reported (p) 16.9 8.7 -12.1 12.1 -30.1 29.3 EPS - normalised (p) 21.5 11.2 -2.0 -12.6 24.6 37.7 Price/earnings ratio (x) 11.1 Return on equity (%) 5.4 -6.7 6.1 -14.4 13.4 Operating cashflow/share (p) -2.6 18.4 31.4 -10.5 -4.5 25.3 Capital expenditure/share (p) 26.7 16.3 7.1 8.5 7.0 11.4 Free cashflow/share (p) -29.2 2.0 24.3 -19.1 -11.5 13.9 Dividend/share (p) 5.5 4.0 1.3 0.0 0.0 1.5 Cash (£m) 9.8 10.4 9.0 30.3 27.9 18.9 Net debt (£m) 2.1 3.2 -0.8 -29.4 -27.0 -13.2 Net assets (£m) 25.9 36.6 35.4 42.8 40.6 47.5 Net assets per share (p) 128 181 175 212 205 239 Source: historic company REFS and company accounts Cash reserves lend scope for further development One estimate I have seen is for tight working capital control, such as lower debtor days, implying net cash is up from £10 million at end-September to about £14.5 million at the year-end. The historic record on free cash flow has been volatile, but last September’s interim results showed £5.8 million net cash generated from operations versus £0.8 million investment needs and £0.4 million lease repayments. There was only £0.9 million bank debt and £4.6 million lease liabilities, in the context of £50.2 million net assets, of which 34% constituted goodwill. The balance sheet therefore encourages ongoing corporate development, both organically and through further acquisitions. Net tangible assets per share were 167p as of last June. Do you trust in a 2021 recovery? This is likely the nub issue for investment rating. Having followed the Molins to Mpac evolution over decades, yes, the group does look better honed than ever before – justifying a relative high on its stock chart. Despite some prospective projects having become delayed due to the pandemic, no orders have been cancelled. Management reckons 75% of its prospects relate to essential consumer products, implying a decent underlying risk/reward profile. At the interim stage however, the board baulked at paying a dividend. The charitable view is that this is what many other companies are doing in exceptional circumstances, which does not rule out a payment on consideration of the full year results. The latest update gives no hint though. I tilt positively on the stock, assuming vaccination roll-out at least enables further draconian lockdowns to be avoided, and a search for decent cyclical stocks extends to small cap ones. ‘Buy’. Edmond Jackson is a freelance contributor and not a direct employee of interactive investor. Suet
bigbigdave: Great super smashing :o) Mpac Group plc (''Mpac'', "Company" or "Group") Full Year Trading Update Resilient FY20 trading performance, ahead of market expectations and encouraging outlook for FY21 Mpac Group plc, a global leader in high-speed packaging and automation solutions, provides a pre-close trading update (unaudited) for the year ended 31 December 2020. The Board is pleased to announce that the Group expects to report underlying profit before tax for the full year 2020 above market expectations, primarily as a result of better than expected margins in Q4 driven by sector mix. Trading continues to be resilient, as Mpac serves essential healthcare, food, and beverage markets, deploying digital technology to mitigate travel restrictions despite the continued headwinds from the pandemic. On 9 September 2020, the Group reported the earnings accretive acquisition of Switchback Group, Inc (''Switchback''), a USA based supplier of packaging machinery and automation solutions to the food, beverage, and healthcare markets. The integration of Switchback into the wider Group has been successful with trading performance at Switchback ahead of management expectations and the first commercial synergies with other businesses within the Group have been secured. Our order book going into 2021 of £55.5m remains strong (31 December 2019: £55.4m) and, to date, no orders have been cancelled due to COVID-19. The Group has a strong balance sheet, no bank debt, and has been cash generative in 2020. The Board constantly monitors the impact of the pandemic on Mpac. Our customers remain active and we continue to win original equipment and service orders with robust demand, particularly in the healthcare sector and in the Americas region. The Board has maintained strong cost control discipline to secure margins, while focusing investment on a 'Fast Recovery' plan to ensure that Mpac is agile and well positioned to take advantage of opportunities when the market returns to higher levels of activity. This plan includes building the Mpac brand, virtual exhibitions for customers to demonstrate the range of newly developed products, investment in senior commercial leadership and offering customers digital solutions for remote machine acceptance and servicing. Our full year results, for the year ended 31 December 2020, are scheduled to be announced in the week commencing 1 March 2021. Tony Steels, Chief Executive, commented: "Our employees have all responded tremendously during 2020, creating a COVID secure environment and deploying digital technologies to ensure our customer service levels remained excellent. Our pipeline of qualified opportunities and our closing order book give confidence for 2021. The acquisition of Switchback has further enhanced our presence in the Americas and the integration into the wider Group has been successful. I am confident that we will be able to report a robust financial performance for 2020 and a positive outlook for 2021 which is testament to the fundamental strengths of the Group."
bwm2: Mpac smashes analyst estimates Mpac (MPAC:270p), a small-cap niche packaging engineering business, servicing the healthcare, pharmaceutical and food and beverage sectors, is successfully navigating its way through the Covid-19 pandemic far better than analysts at Panmure Gordon predicted when I last suggested buying the shares, at 263.5p (‘Deep value plays’, 13 July 2020). First half order intake only dipped 6 per cent to £30.5m, and the closing order book was up 14 per cent year-on-year to £45.4m. Importantly, there have been no Covid-19 cancellations. That’s an impressive performance and one that highlights ongoing demand in Mpac’s end markets which are growing at a rate of 4 to 6 per cent per year, and the company’s ability to capture the growth, too. For instance, Mpac offers customers digital solutions for artificial intelligence-enabled equipment and robotics in their production facilities and warehouses. Chief executive Tony Steels pointed out during our results call that one consequence of Covid-19 will be an acceleration of the move to automation as more blue-chip clients reappraise their manufacturing efficiency. Mpac is proactively helping its clients to do so and, with more than 85 per cent of its revenue already generated overseas, is incredibly well placed to benefit from this structural change. Also, around 75 per cent of Mpac’s business is associated with essential consumer products, another reason why end-market demand is robust. Indeed, analyst Paul Hill at Equity Development points out that the second half has started well, noting “unseasonally strong July bookings, especially in North America and healthcare, with food and beverage not far behind.” The Americas accounted for half of Mpac’s first half revenue, so is an important market. The other key take was the 28 per cent first half surge in high margin service revenue from £7.6m to £9.7m, and at higher levels of profitability, on the back of improved operational supply chain efficiency. Mpac reported “double-digit revenue growth registered across all regions” in the service segment. Admittedly, disruptions completing installation of equipment did have an impact which explains why Mpac’s first half underlying operating profit of £2.6m on revenue of £36.8m was down from a record profit of £4.6m reported on revenue of £45.8m in the first half of 2019. However, first half operating profit was 30 per cent higher than Panmure had predicted for whole of 2020, highlighting the scale of Mpac’s outperformance. Based on Mpac delivering a second half operating profit of £3m, only £200,000 shy of the 2019 second half result, Panmure now expects Mpac to report full-year pre-tax profit of £5.4m on annual revenue of £81.6m to produce earnings per share (EPS) of 23.5p. On this basis, the shares are rated on a cash-adjusted PE ratio of 6.7, a harsh rating for a company that has a resilient revenue base and is a major beneficiary of the accelerated change in manufacturing automation. Indeed, after taking account of the net cash pile of £22.5m (112p a share) and the actuarial pension deficit of £35m, I arrive at fair value of 330p a share. So, having included the shares, at 156p, in my 2018 Bargain Shares portfolio, and now priced on a bid-offer spread of 265p to 270p, I see scope for further upside. Buy.
standish11: Packaged for economic recovery Mpac (MPAC:263.5p), a small-cap niche packaging engineering business has issued a reassuring pre-close trading update ahead of interim results on Thursday, 3 September 2020. Entering the second half, the order book is up almost 14 per cent year-on-year to £45.4m, and there have been no Covid-19 cancellations. All sites have been able to remain open throughout the pandemic, so providing essential support for customers in the pharmaceutical, healthcare, nutrition and beverage industries. Mpac continues to win new orders with original equipment manufacturers (OEMs) and service orders, too, highlighting resilience in the healthcare sector (accounting for three quarters of annual sales), and in the Americas region (almost two-thirds of sales). Moreover, debtor days remain at pre-Covid-19 levels, and net cash has surged from £18m to £22.1m since the start of 2020, driven by tight working capital management, deferral of discretionary spend and access to government support. Admittedly, there will be an impact on Mpac’s operations this year. Analyst Sanjay Jha at Panmure Gordon estimates a 24 per cent decline in revenue to £67.6m ahead of a strong recovery in 2021 when he forecasts sales of £81.5m. On this basis, expect operating profit of £2m rising sharply to £5.3m in 2021, although in the absence of management guidance I feel that Panmure are being far too bearish on this year’s profit estimates and overly cautious on their 2021 numbers. In any case, Mpac's shares are only rated on 10.5 times low-ball 2021 EPS estimates, representing a 36 per cent discount to the UK engineering sector average even though the company has net cash of 110p a share. In my opinion, Mpac’s current rating fails to adequately factor in a pick up in second half orders (thus reducing the 2020 profit shortfall) as lockdown restrictions are eased and potential for a stronger than forecast earnings rebound in 2021. Mpac’s management is ahead of the game, having put in place a ‘Fast Recovery’ plan to position the company for growth as activity levels return to normalised levels. Initiatives include the launch of a new website, a virtual exhibition for customers to demonstrate the range of newly developed products, and offering customers digital solutions for artificial intelligence-enabled equipment and robotics in their production facilities and warehouses. The Covid-19 crisis will undoubtedly accelerate these trends as more blue-chip clients reappraise their manufacturing efficiency. Mpac’s share price is up 22 per cent since I last rated the shares a buy (‘Coronavirus winners’, 9 March 2020) and the holding has delivered a 66 per cent gain since I included the shares, at 156p, in my 2018 Bargain Shares Portfolio. A recovery back to my 330p target price, which was surpassed in February when the shares hit a 16-year high of 377p, is not unrealistic. Buy.
fuji99: Here it is: "On the upgrade" Simon Thompson Mpac (MPAC:268p), a small-cap niche packaging engineering business supplying customers in the pharmaceutical, healthcare, nutrition and beverage industries, has prompted analysts to push through their fifth earnings upgrade since the annual results in March last year ('Mpac’s massive earnings upgrades', 5 Mar 2019). Mpac supplies its blue-chip client base with high-speed, cutting-edge packaging machinery and equipment in a global market growing by 4 to 6 per cent a year, and one where demand is being underpinned by the need for large original equipment manufacturer (OEM) customers to improve efficiency and lower costs and wastage in their production lines. Mpac earns more than 80 per cent of annual revenues outside the UK, so it is benefiting from strong global trends including the migration to smart technologies, which is accelerating growth rates as large companies adopt artificial intelligence-enabled equipment and robotics in their production facilities and warehouses. Mpac’s order intake (especially in the US and healthcare segment), profit margins and cash generation are all ahead of analysts' full-year expectations even though they had already lifted forecasts at the time of the 2019 half-year results (‘Mpac delivers fourth earnings upgrade this year’, 9 Sep 2019). Paul Hill at Equity Development now expects Mpac’s 2019 pre-tax profits to rise from £1.4m to £7.5m, representing a £500,000 upgrade, on revenue up by more than half to £89m, buoyed by a surge in operating profit margin from 2.4 to 8.4 per cent – the margin expansion highlighting the operating leverage of the business given its relatively fixed cost base. On this basis, expect 2019 earnings per share (EPS) to soar from 4.5p to 33.7p, implying the shares are rated on a lowly price/earnings (PE) ratio of eight, or half the sector average, a valuation that can no longer be justified by Mpac’s legacy pension scheme liabilities. Moreover, expect closing net funds of around £17.8m (88p a share), or 80 per cent higher than at the end of the first half, cash generation being buoyed by an unwinding of working capital, the better-than-expected profit contribution and receipt of customer deposits. Mpac’s shares are up around 70 per cent since I included them, at 156p, in my market-beating 2018 Bargain Shares Portfolio and smashed through my 250p target price following the latest earnings upgrade. However, the shares still only trade on a cash-adjusted PE ratio of 5.5 and I now feel that a fair value of 330p is more appropriate. Strong buy.
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