Mpac Share Discussion Threads

[chester9] 01/10/2024 06:52

Fund raise at 4.00 share price to raise 29m pounds. Well over 30% increase on turnover, shows they are ambitious but they will need to execute well.

[brummy_git] 01/10/2024 06:40

Highly synergistic €56m acquisition of CSi Palletising today by Mpac

All the details & commentary here

[backmarker] 01/10/2024 06:33

Sounds like another great acquisition. Info leakage might be an explanation for the recent share price weakness ahead of what is a significant fund-raising. Fortunately it would appear the fundraising isn't overly dilutive.This should also take our market cap over £100m.

[mfhmfh] 01/10/2024 06:15

Here we go...

[backmarker] 26/9/2024 12:51

I continue to be surprised that this share is falling rather than rising. I can only think that there is a degree of profit-taking going on. After all the share price has risen substantially from its lows a year ago. I think there is little doubt the company has been doing well and it seems to me there has even been an increase in newsflow recently.Mr Market is trying my patience but quality will out eventually. This is clearly not a share for trading but if it meets my target of 600p in a year that would be a pretty reasonable 30% return.

[our haven] 24/9/2024 14:39

Thanks CT for the clarification, much appreciated.

[backmarker] 24/9/2024 12:34

MCAP looks interesting from a chart perspective. Since a year ago it looks to have completed a 3 waves up 2 down formation.Hopefully it will now start the next one. I'm looking for a target of 600p.The fundamentals here are great anyway, so even if you don't believe in charts this is still a great-looking share to buy.GLTA. DYOR.

[backmarker] 24/9/2024 12:29

He's the guy that owned BCA that we just acquired.Part of the consideration was in shares, and that is what is being registered.

[mfhmfh] 24/9/2024 10:10

Who's James G Laverdiere?

[castleford tiger] 18/9/2024 18:16

our haven 6m usd
under 5£m

tiger

[brummy_git] 18/9/2024 08:18

Highly synergistic $17m acquisition of Boston Conveyor & Automation today by Mpac.

All the details & commentary here.

[backmarker] 18/9/2024 07:40

Gopher, I think the reason for no dividend yet is that we need all our cash for growth, particularly by acquisitions.

[edmonda] 18/9/2024 06:37

"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.

[our haven] 18/9/2024 06:29

I see Equity Development have covered the acquisition pretty well.Soon see what the market thinks of the £6m issue of new shares to part cover it.

[our haven] 18/9/2024 06:25

The acquisition is very much alined with their core business, which I assume means cost savings given the price paid.Will help with US development.

[gopher] 17/9/2024 14:53

It's an attractive business but what are the reasons for not paying a dividend? I noted that this is a long standing position.It takes them off the radar of some small cap institutional investors.

[gswredland] 16/9/2024 13:37

I did buy in this morning hoping that this fall is now overdone

[backmarker] 16/9/2024 12:55

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.

[c1d] 16/9/2024 12:43

Agreed gswredland. The 2 online presentations I have seen include management saying they are confident that FY forecast will be hit and the outcome of the actuary's triannual pension valuation will show a much improved result. It's not even like it was on a big P/E ratio before the share price fell back.

[gswredland] 16/9/2024 09:14

Bid still continues to fall. Bit mystifying

[deltaham] 11/9/2024 09:10

Simon Thompson of IC yesterday posted an upbeat article:
First half operating margin of 7.5 per cent is forecast to increase to 9.4 per cent for the full year which, on 5 per cent higher revenue of £120m, should drive up pre-tax profit almost 50 per cent to £10.5mn. On this basis, the shares are rated on a forward price/earnings (PE) ratio of 12. Furthermore, earnings per share (EPS) should rise 15 per cent to 44.6p on 8-10 per cent revenue growth in 2025.
Trading on a 2025 PE ratio of 10, the rating is still too low for a company delivering an 18 per cent return on capital employed and double-digit earnings growth. Buy.

[backmarker] 11/9/2024 07:29

Thx, and even cheaper today.Is someone trying to mount a shorting campaign against MPAC ? It won't succeed!

[castleford tiger] 10/9/2024 17:38

hsp/jet2/mfx/rbn/rtc

but this is cheap as well
best tiger

[backmarker] 10/9/2024 17:11

I confess I do not understand today's price action one jot.But there you go, Mister Market is at his tricks again.