Mpac Share Discussion Threads

[our haven] 09/9/2020 08:22

CT You were right about the accelerated growth by acquisition that you mentioned last week. Happy days!

[castleford tiger] 09/9/2020 08:17

300 to buy looks so cheap

[castleford tiger] 09/9/2020 08:16

And that’s on a few months !!
I am going for 8 million profit next year and 12 x earnings giving cap of 100
This is 500 p a share of which you can add another 50 p for cash

This has a long way to go

[bigbigdave] 09/9/2020 07:46

Equity Development’s Paul Hill on MPAC: I have increased my 2020 sales (+5%) & adjusted EBIT (+9%) forecasts to £83.6m & £5.8m - in turn lifting the valuation by 8.5% to 380p/share.

[castleford tiger] 09/9/2020 07:40

Excellent news and should add a few hundred thousand this year to bottom line and a couple of million year after.
This can very quickly race to 10 m profit a year.
Then the valuation needs to be 120/140 m
Which is 6/7 pounds a share.
Exciting times

[our haven] 09/9/2020 07:13

The purchase of Switchback looks a perfect fit for MPAC. Great purchase in the US market.

[bigbigdave] 09/9/2020 07:07

Nice....

RNS Number : 4009Y

Mpac Group PLC

09 September 2020

9 September 2020

Mpac Group plc

("Mpac" or the "Company")

Acquisition of Switchback Group, Inc.

Mpac Group plc (AIM: MPAC) a global leader in high speed packaging and automation solutions is pleased to announce that it has acquired the entire issued share capital of Switchback Group, Inc. ("Switchback"), a USA based supplier of packaging machinery and automation solutions to the food, beverage and healthcare markets (the "Acquisition"). The Board expects the Acquisition to be immediately earnings enhancing.

[castleford tiger] 08/9/2020 08:27

Yes pal
@castlefordtiger

[arregius] 07/9/2020 21:36

Are you on twitter tiger?

[arregius] 07/9/2020 20:43

I said mpac will deliver an update above expectations. But thats my opinion so, is worthless

[castleford tiger] 07/9/2020 20:03

the cash will be put to good use as there re a fair few companies on the table being looked at.

I visited MPAC Tadcaster today and boy are they busy.

I think the situation here mirrors the growth at DART group.

Its all under the radar. I expect upgrades
tiger

[mfhmfh] 07/9/2020 15:08

'Mpac smashes analyst estimates' according to ST.

330 target price.

[bwm2] 07/9/2020 13:08

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.

[arregius] 07/9/2020 12:55

Does it say anything else?

[investor0109] 07/9/2020 12:37

MPAC tipped in IC today: 'Mpac smashes analyst estimates' with BUY rating

[arregius] 07/9/2020 12:35

Has been tipped anywhere?

[arregius] 07/9/2020 11:38

https://www.cnbc.com/2020/07/11/5g-spurs-factory-automation-could-add-trillions-to-economy.htmlVery good insights about where mpac is going

[arregius] 07/9/2020 10:46

Better to be invested before any acquisition gets announced... just saying

[investor0109] 05/9/2020 15:15

bubloo- IC does well to explain pension deficit:

'The US scheme has a £6.2m deficit, and although the UK pension scheme is in surplus on an IAS19 basis (assets of £398m exceed liabilities of £377m), tiny changes in bond yields can have a major impact on the pension liabilities. Also, the assumptions used in actuarial valuations are far more conservative than for IAS19. This explains why analysts believe the current actuarial deficit could be around £50m. Mpac is making a £1.9m payment into the UK scheme to bridge the funding gap, and has agreed to pay additional payments if annual operating profit exceeds £5.5m. Please note that I took into account Mpac’s pension schemes when I suggested buying the shares in my 2018 Bargain Shares Portfolio.'

[investor0109] 05/9/2020 14:53

Arregius- Yes, I believe Simpson too critical of MPAC's performance, particularly given current economic climate. All points made by Simpson are legitimate, though not so troublesome to me, owing to some of the reasons outlined by IC. Pension deficit not to be dismissed, though requires better sense of perspective in my opinion. Deficit halved last year, set to be eliminated by 2024.

[bubloo] 05/9/2020 14:35

Is there a large pension liability. In one half of slide they have surplus but technical analysis shows 40 million deficit. I don't understand this. Anyone competent enough to explain. I would like to buy around 250 if it at all drops there wherein there wild be a good risk read ratio.
help needed with above please