Mpac Group PLC Year-end trading update (3026M)

TIDMMPAC

RNS Number : 3026M

Mpac Group PLC

07 January 2019

7 January 2019

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No. 596/2014

Mpac Group plc

("Mpac", "Company" or "Group")

Year-end trading update

Mpac Group plc, a global leader in 'Make, Pack, Test and Service' high speed packaging solutions, provides a pre-close trading update for the year ended 31 December 2018.

We are pleased to report that sales growth continued in the second half of the year. We also launched a number of new product innovations at the Chicago Pack Expo trade show which were well received by customers and resulted in new contract wins. During the second half we also secured a number of contracts for delivery in 2019.

Considerable progress has been made in delivering on the Group's strategic priorities and in resolving the two technically challenging legacy contracts. The UK legacy contract has been resolved and we have agreed the commercial approach to resolving the Canadian contract which is expected to be finalised during 2019.

We are pleased to announce that sales and profit before tax are expected to be in line with market expectations (subject to year end audit), supported by a strong closing orderbook which will provide a platform for continued growth in 2019.

Pensions

Together with our actuarial advisors, we are currently evaluating the extent to which the recent Lloyds Banking Group's High Court ruling around the equalisation of guaranteed minimum pensions between men and women will crystallise additional liabilities in our UK defined benefit pension scheme. We expect that any required adjustment will be recognised in the final results and be shown as a 'non-cash' non-underlying item. Our current 2018 profit guidance excludes any potential impact on the Income Statement related to pension equalisation

Tony Steels, Chief Executive, commented:

"I am pleased to report a strong end to 2018 with a strong closing orderbook. The second half saw us secure a number of new contract wins that support the strategic objectives that we have put in place. We are well on the way to finalising the remaining legacy contract and I am confident that we are back on track with a good platform for growth."

For further information, please contact:

 
 Mpac Group plc                           Tel: [phone] 
  Tony Steels, Chief Executive 
  Will Wilkins, Group Finance Director 
 Panmure Gordon (UK) Limited (Nominated   Tel: [phone] 
  Adviser & Broker) 
  Andrew Potts - Corporate Advisory 
  James Stearns - Corporate Broking 
 Hudson Sandler                           Tel: [phone] 
  Nick Lyon 
  Nick Moore 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

TSTGMGGMLVZGLZM

(END) Dow Jones Newswires

January 07, 2019 02:00 ET (07:00 GMT)