TIDMMPAC
RNS Number : 7766T
Mpac Group PLC
22 March 2023
22 March 2023
AIM: MPAC
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018
Mpac Group plc
("Mpac", "the Company" or "the Group")
Mpac, the global packaging and automation solutions Group, today
announces its results for the 12 months to 31 December 2022
FY22 trading performance and outlook for FY23 in line with
market expectations
Financial Summary
-- Order intake of GBP83.8m (2021: GBP117.9m) contributing to a
closing order book of GBP67.2m (2021: GBP78.4m)
-- Group full year revenue up 4% to GBP97.7m (2021: GBP94.3m)
-- Strong Service revenue growth, up 14% to GBP23.1m (2021: GBP20.2m)
-- Underlying profit before tax of GBP3.5m (2021: GBP8.6m)
-- Underlying earnings per share of 13.3p (2021: 39.7p)
-- Statutory profit before tax of GBP0.2m (2021: GBP8.2m)
-- Basic loss per share of 2.2p (2021: earnings per share of 39.1p)
-- Net debt GBP4.7m (2021: Net cash GBP13.6m)
Operational and Strategic highlights
-- Strong recovery of performance in H2 driven by unwinding of
supply chain issues, cost saving mitigations and leveraging One
Mpac integrated business systems
-- Service revenue growth, supported by the increasing use of
digital technologies, driven by regional strategy
-- Framework agreement signed with FREYR Battery ("FREYR"), a
developer of next-generation battery cell production capacity, for
the exclusive supply of battery cell automation lines
-- Shipment of initially completed modules of battery cell
assembly automation line to FREYR Battery
-- Launch of Mpac Cube service product line offering to enhance
our customers connectivity, productivity and sustainability in
addition to conventional service products
Current trading and outlook
-- The Group has started 2023 in line with expectations with
encouraging order intake and a healthy pipeline of prospects,
better positioned to address what remains a challenging trading
environment
Tony Steels, Chief Executive, commented:
"Mpac once again demonstrated its agility in implementing
mitigations to deliver a second half recovery. This was in the face
of increased macro-economic uncertainty and unprecedented
volatility in the global supply chain which impacted both the lead
time of customers' order placement and caused operational
challenges. The Group responded dynamically to continue to meet
customer expectations and increase service revenue. The Group ended
2022 with a strong closing order book and a healthy prospect
pipeline, providing good coverage over 2023 forecast revenue."
For further information, please contact:
Mpac Group plc Tel: +44 (0) 2476
Tony Steels, Chief Executive 421100
Will Wilkins, Group Finance Director
Shore Capital (Nominated Adviser & Broker)
Advisory Tel: +44 (0) 20 7408
Patrick Castle 4050
Iain Sexton
Broking
Henry Willcocks
Hudson Sandler Tel: +44 (0) 20 7796
Nick Lyon / Nick Moore 4133
OPERATING REVIEW
Tony Steels
Introduction
In recent years the Group has made substantial progress in its
strategic plans to deliver growth from the resilient food and
beverage and healthcare markets, which have attractive long term
growth drivers. However, well documented short-term operational
challenges caused by macro-economic headwinds and volatile global
supply chains resulted in lower order intake, reduced operational
efficiency, and extended project build time frames during 2022.
Against this backdrop, the Group was successfully able to implement
a range of mitigation measures which drove an improved financial
performance in the second half of the year. These included securing
stock, establishing alternative sources of electronic component
supply, increased focus on reliable planning data from our ERP
system, close management of our supply chain, negotiating price
increases and implementing cost saving initiatives. It is also
thanks to the dedication and resourcefulness of our employees that
our customers' expectations have continued to be met during this
challenging period for Mpac.
In 2022 the Group continued to make progress in the development
of casting and unit cell assembly equipment for the battery cell
production line at the FREYR Battery ("FREYR") Customer
Qualification Plant in Norway. During H2, changes requested by
FREYR have resulted in a revised plan for delivery of the line in
Q1 2023, and commissioning in Q2 2023. In September 2022, the Group
announced a framework agreement for the supply of assembly
equipment to the production lines intended by FREYR to follow-on
from the initial Qualification Plant.
2022 was a milestone for Mpac seeing the first graduates from
our Mpac Academy, which is developing future leaders for the Group.
Also, for the first time, Mpac was at the Pack Expo trade show in
Chicago as a truly integrated business, offering sales and service
throughout the Americas through unified teams.
Our search for further complementary acquisition targets
continues. However, the focus of management remains on delivering
organic growth and extending our commercial reach to new customers
with new products and services, supported by a comprehensive,
market-led development roadmap.
The fundamentals of Mpac remain strong and the business has
again demonstrated resilience in managing short term operational
challenges. The Board is excited about the next phase for the
Group, given our strong position in the growing healthcare and food
& beverage sectors and we remain on track to meet our long-term
strategic objectives.
Supply chain
Disruption to the supply of critical, customer-specified chip
based electronic components continues; however, the Group has been
proactive in implementing mitigation measures as discussed above.
Delays to parts delivery extended project build times, resulting in
increased levels of working capital of GBP17.8m, which was funded
by a combination of free cash and borrowing against existing
committed bank facilities. The increase in working capital is
expected to unwind as the backlog of projects are largely cleared
in H1 2023.
Strategic update
Going for Growth
Offering comprehensive "Automation Ecosystems" in our target
sectors, driven by understanding customer needs and providing
innovative solutions.
Our goal remains to grow Group revenue at a double-digit rate
year on year. The overall addressable end market is substantial and
growing, though macro-economic uncertainty has impacted the timing
of customer investment, extending decision-making cycles. However,
the fundamentals of the markets in which we operate remain
strong.
During 2022 we further consolidated and focused our regional
sales structure through extensive training and sales tools,
supporting cross selling and delivering a wider range of machines
to new and existing customers. Our One Mpac model was reinforced
with significant investment in trade shows, most notably the
flagship Chicago packaging exhibition, Pack Expo, in September,
resulting in a significant uptick in both followers and lead
generation.
Innovation remains the key to long term sustainable growth. We
have made significant progress in 2022 developing technologies to
support our solutions for the clean energy sector in collaboration
with 24M and FREYR. Furthermore, we have launched additional
products marketed under the Mpac Cube brand, which incorporates
innovations focused on improved machine performance and digital
enhancements as well as further Industry 4.0 enabled technology.
Our recently launched case packing solutions have become a key
product to offer our customers in combination with other Mpac
solutions.
Make Service a Business
A comprehensive portfolio of service products to maximise
customers' return on investment.
Service continues to grow year on year supported by investments
in innovation and building resources located in the regions our
customers operate. Mpac Cube was further developed during the year
to incorporate our service, installation and commissioning, spare
parts, site service and training, together with retrofits and
upgrades. In addition, a suite of digital products is now available
to provide customers with advanced engineering, information
management, connected services and machine insights, ensuring our
customers can fully embrace Industry 4.0.
Our goal is to generate 30% of our revenue from these services
and we are well on track to meet this target.
In 2022 we also enhanced our Service model, developing the
Americas healthcare service business unit, which provides proactive
and responsive technical support specific to the installed machine
base. This remains a key focus as we enter 2023.
Operational Efficiency
Operational excellence and flexible supply chains, increasing
responsiveness to our customers.
Our goal is to be a flexible organisation which can respond with
agility to our customers' needs, leveraging our global internal
resources as one. Short term operational challenges in 2022
highlighted the benefits of the prior investment in business
systems which played a key part in mitigating the impact for the
full year.
Our global ERP and business systems blueprint, implemented in
our facilities in the Netherlands, Canada and the UK, will be
rolled out to our facility in the US during 2023.
We are proud to have completed the inaugural year of our Mpac
Academy and will look to extend this in 2023 with a graduate
development programme, to include recent graduates, aimed at
enlarging our graduate intake across all disciplines in the Group
and providing them with a broad base of training, to support their
career and future development with Mpac.
Environmental, Social & Governance
We are fully committed to improving our Environmental, Social
& Governance performance in all areas. Sustainability is at the
core of the Mpac business model. Our engineered automation and
packaging solutions provide customers with sustainable and
environmentally sound equipment that support the global megatrends
of reductions in packaging, particularly single-use plastics,
reduced waste and increase overall equipment effectiveness. Our
end-to-end capabilities help our customers to achieve their
sustainability goals.
Acquisition strategy and update
The Board continues to seek and evaluate potential acquisition
opportunities, the focus of which is to find businesses that will
enhance our customer proposition in automation and packaging
solutions by extending our product range and our access to a
broader range of customers in our key market sectors. Several
opportunities are currently under evaluation and further updates
will be provided as appropriate.
Outlook
The Group has a strong order book and prospect pipeline and
continues to focus on meeting customer commitments.
Economic conditions of rising energy costs, higher interest
rates, skilled labour shortages and ongoing semi-conductor supply
constraints are expected to continue from 2022 into 2023, setting
the context for customer investments and decision-making. The
measures implemented to respond to the short-term operational
challenges of increasing inflation and supply chain disruption in
2022 have placed the Group in a good position to successfully
manage any ongoing disruption.
The Group remains focused on executing its long-term strategy of
delivering OE and Service growth at improved margins, increasingly
through our digital services customer offering, together with
increased operational efficiencies.
We continue to work with our customer, FREYR, to develop and
build a clean energy casting and unit cell assembly line and, while
timelines have been extended, this project has the potential to
open the clean energy sector to Mpac. Delivering the initial
development line and establishing Mpac's position as a trusted
partner to provide battery assembly automation in this exciting and
rapidly developing market will be a focus for the Group in
2023.
The Board believes the Group's long-term prospects are positive
and the new financial year has started in line with its
expectations. Whilst the macro-economic and geopolitical
uncertainty looks likely to continue, Mpac is well positioned to
meet its strategic objectives.
Tony Steels
Chief Executive
FINANCIAL REVIEW
Will Wilkins
Revenue and operating results
Group revenues of GBP97.7m (2021: GBP94.3m) represent an
increase of 4% compared to the previous year. OE revenue remained
broadly level at GBP74.6m (2021: GBP74.1m), underpinned largely by
growth in EMEA and from the clean energy sector. Services revenue
grew by 14% to GBP23.1m (2021: GBP20.2m), driven predominantly by
growth in the Americas and Asia Pacific. The rate of revenue growth
in all regions was impacted by lengthening supply chain lead times
and operational inefficiencies from erratic supplies of key
electronic components.
Overall order intake for the Group fell by 29% to GBP83.8m
(2021: GBP117.9m), due primarily to the impact of lengthening
customer investment decision making in the light of a more
challenging economic outlook.
The closing 2022 order book reduced to GBP67.2m (2021:
GBP78.4m), albeit with increased customer diversification. The
value of the closing order book, whilst below the prior year,
continues to provide good coverage over the forecast 2023 revenue.
We remain vigilant to project execution risk and the impact on
operational efficiency of supply chain disruption.
The Group was significantly impacted by the supply chain crisis
in 2022, which resulted in a reduction in market profit guidance,
announced in July 2022. Pleasingly, the measures that we
implemented have been successful and the Group reported a full year
underlying operating profit of GBP3.9m, ahead of revised market
guidance. Extended project build times led to an increase in the
volume of partially complete projects at the year end and resulted
in higher working capital. After the cost of debt to fund the
increase in working capital, underlying profit before tax for the
year of GBP3.5m was in line with revised market guidance.
We manage the business in two parts, OE and Service and across
three regions, Americas, EMEA and Asia.
Revenue
2022 2021
GBPm GBPm
Americas 52.8 63.3
EMEA 37.5 26.7
Asia 7.4 4.3
Revenue
2022 2021
GBPm GBPm
Food & Beverage 45.7 45.3
Healthcare 30.1 29.2
Clean Energy 11.1 2.6
Other 10.8 17.2
Individual OE contracts, and to a lesser extent the Service
contracts, can be large. Accordingly, a few significant orders can
have a disproportionate impact on the growth rates seen in
individual sectors and regions from year to year.
Original Equipment
OE order intake of GBP57.2m (2021: GBP96.0m) was 40% below the
prior year due to customer orders being brought forward into 2021.
OE revenues of GBP74.6m (2021: GBP74.1m) were in line with the
prior year.
OE revenue generated in the Americas region was 23% below the
prior year at GBP40.9m (2021: GBP53.4m). The decrease in revenue
was primarily driven by supply chain delays impacting project
deliveries in the food & beverage sector.
In EMEA, OE revenue in the year was GBP27.8m (2021: GBP17.4m)
with the increase due primarily to the growth within the clean
energy sector in 2022. OE Revenue in Asia was GBP5.9m (2021:
GBP3.3m).
Service
Order intake for the Service division was 21% above 2021 at
GBP26.6m (2021: GBP21.9m). Service revenue of GBP23.1m (2021:
GBP20.2m) was 14% above the prior year.
Service revenue in the Americas showed strong growth at GBP11.9m
compared to GBP9.9m in 2021, with the increase being driven largely
by the healthcare and food & beverage sectors. EMEA revenue in
the year was GBP9.7m compared to GBP9.3m in 2021. Asia revenue in
the year was GBP1.5m compared to GBP1.0m in 2021.
Operating results
Gross profit was GBP24.4m (2021: GBP28.9m) and underlying
selling, distribution and administration costs were GBP20.5m (2021:
GBP20.1m).
Underlying operating profit was GBP3.9m (2021: GBP8.8m).
Underlying profit after tax was GBP2.7m (2021: GBP7.9m) and
statutory loss for the year was GBP0.4m (2021: profit of
GBP7.8m).
Non-underlying items merit separate presentation in the
consolidated income statement to allow a better understanding of
the Group's financial performance, by facilitating comparisons with
prior periods and assessments of trends in financial performance.
Pension costs, acquisition-related items, reorganisation costs and
property transactions are considered non-underlying items as they
are not representative of the core trading activities of the Group
and are not included in the underlying profit before tax measure
reviewed by key stakeholders.
Net financing income was GBP0.2m (2021: expense of GBP0.1m). Tax
on underlying profit before tax was GBP0.8m (2021: GBP0.7m). The
tax charge on the Group's profit before tax was GBP0.6m (2021:
GBP0.4m).
Reconciliation of underlying profit before tax to profit before
tax
2022 2022 2021 2021
GBPm GBPm GBPm GBPm
Underlying profit before tax 3.5 8.6
Non-underlying items
Defined benefit pension scheme - other
costs and interest (0.8) (1.0)
Acquisition costs (0.3) (0.4)
Reorganisation costs (0.6) -
Release of deferred consideration - 2.4
Acquired intangible asset amortisation (1.6) (1.6)
Deferred consideration interest - (0.1)
Profit on disposal of Coventry facility - 0.3
Non-underlying items total (3.3) (0.4)
----------------------------------------- -------- ------ -------- ------
Profit before tax 0.2 8.2
----------------------------------------- -------- ------ -------- ------
Dividends
Having considered the opportunities for investment in the growth
of the Group, the Board has decided that it is not appropriate to
pay a final dividend. No interim dividend was paid in 2022. Future
dividend payments will be considered by the Board in the context of
future growth opportunities and when the Board believes it is
prudent to do so.
Cash, treasury and funding activities
Cash at the end of the year was GBP4.2m (2021: GBP14.5m), after
GBP8.0m of borrowings were drawn during the year and GBP0.3m of the
Group's arranged overdraft facility was utilised. Net cash outflow
before reorganisation was GBP12.8m (2021: inflow of GBP0.8m), after
an increase in working capital of GBP17.7m (2021: GBP8.2m) and
defined benefit pension payments of GBP2.1m (2021: GBP2.6m).
Reorganisation and acquisition costs of GBP0.8m (2021: GBP0.3m)
were paid in the year. Net taxation payments were GBP0.4m (2021:
GBP0.1m). Capital expenditure on property, plant and equipment was
GBP1.0m (2021: GBP1.5m), and capitalised product development
expenditure was GBP1.4m (2021: GBP0.2m). Net current assets at the
end of the year were GBP12.2m (2021: GBP12.5m) and net assets at
the year end were GBP62.2m (2021: GBP65.4m).
Deferred consideration of GBP0.8m in respect of the acquisition
of Switchback in 2020, following the satisfaction of certain
performance targets in the year to 30 September 2022, was paid in
October 2022. The two-year performance criteria relating to the
purchase of Switchback in 2020 has now concluded with the deferred
consideration paid in full.
The Group entered into a three-year funding agreement with HSBC
in 2022, which provides the Group with a GBP20.0m revolving credit
facility to support future growth. This facility also provides a
number of other opportunities to proactively manage the Group's
cash and ensure that the Group is well placed to react to
opportunities, both organic and acquisition related, as they arise.
The Group utilised GBP8.0m of this facility in the year.
There were no significant changes during 2022 in the financial
risks, principally currency risks and interest rate movements, to
which the business is exposed, and the Group treasury policy has
remained unchanged. The Group does not trade in financial
instruments and enters into derivatives (mainly forward foreign
exchange contracts) solely for the purpose of minimising currency
exposures on sales or purchases in currencies other than the
functional currencies of its various operations.
Working Capital
The global supply chain crisis resulted in delays to project
builds and more OE projects at the design and assembly stage of
completion than at the start of the year. This change delayed the
achievement of completion milestones, delaying invoicing to
customers.
This build-up of contract assets peaked in the fourth quarter of
2022 following the supply of certain key electrical components.
At the same time, order intake in the second half of 2022 was
weighted towards the end of the year, which broadly did not allow
for sufficient time for the collection of customer deposits before
the year end. This combination of factors led to an increase in
working capital which we expect to largely unwind in the first half
of 2023.
Pension schemes
The Group is responsible for defined benefit pension schemes in
the UK and the US, in which there are no active members.
The IAS 19 valuation of the UK scheme's assets and liabilities
was undertaken as at 31 December 2022 and was based on the
information used for the funding valuation work as at 30 June 2021,
updated to reflect both conditions at the 2022 year end and the
specific requirements of IAS 19. The smaller US defined benefit
schemes were valued as at 31 December 2022, using actuarial data as
of 1 January 2022, updated for conditions existing at the year end.
Under IAS 19 the Group has elected to recognise all actuarial gains
and losses outside of the income statement.
The IAS 19 valuation of the UK scheme resulted in a net surplus
at the end of the year of GBP31.5m (2021: GBP35.7m) which is
included within the Group's assets. The value of the scheme's
assets at 31 December 2022 was GBP311.2m (2021: GBP453.1m) and the
value of the scheme's liabilities was GBP279.7m (2021: GBP417.4m).
Despite the unprecedented volatility in financial markets around
the world in 2022, the scheme's protection strategies, notably its
use of Liability Driven Investments, ensured that the surplus was
protected.
The IAS 19 valuations of the US pension schemes showed an
aggregated net deficit of GBP2.1m (2021: GBP2.5m) with total assets
of GBP8.1m (2021: GBP9.9m).
During the year the Company made payments to the UK defined
benefit scheme of GBP2.0m (2021: GBP2.3m).
The UK scheme's triennial valuation as at 30 June 2021 was
completed in the year, with the reported deficit reducing to
GBP28.4m (30 June 2018: GBP35.2m). The contributions remained at
the same level, but the recovery period reduced to four years and
six months (30 June 2018: 6 years 1 month).
Equity
Group equity at 31 December 2022 was GBP62.2m (2021: GBP65.4m).
The movement arises mainly from the loss for the year of GBP0.4m, a
net actuarial loss in respect of the Group's defined benefit
pension schemes of GBP3.7m and changes in the fair value of cash
flow hedges of GBP1.3m; all figures are stated net of tax where
applicable.
Will Wilkins
Group Finance Director
CONSOLIDATED INCOME STATEMENT
2022 2021
----------------------------------------- ----------------------------------------
Non-underlying Non-underlying
(note (note 3)
Underlying 3) Total Underlying GBPm Total
Note GBPm GBPm GBPm GBPm GBPm
Revenue 2 97.7 - 97.7 94.3 - 94.3
Cost of sales (73.3) - (73.3) (65.4) - (65.4)
------------ ---------------- --------- ------------ ---------------- --------
Gross profit 24.4 - 24.4 28.9 - 28.9
Distribution expenses (8.1) - (8.1) (6.8) - (6.8)
Administrative
expenses (11.9) (3.9) (15.8) (12.4) (0.5) (12.9)
Other operating
expenses (0.5) - (0.5) (0.9) - (0.9)
------------ ---------------- --------- ------------ ---------------- --------
Operating profit 2, 3 3.9 (3.9) - 8.8 (0.5) 8.3
Financial income - 0.6 0.6 - 0.2 0.2
Financial expenses (0.4) - (0.4) (0.2) (0.1) (0.3)
------------ ---------------- --------- ------------ ---------------- --------
Net financing
(expense)/income (0.4) 0.6 0.2 (0.2) 0.1 (0.1)
------------ ---------------- --------- ------------ ---------------- --------
Profit before 3.5 (3.3) 0.2 8.6 (0.4) 8.2
tax
(0.8) 0.2 (0.6) (0.7) 0.3 (0.4)
Taxation
------------ ---------------- --------- ------------ ---------------- --------
Profit for the
period 2.7 (3.1) (0.4) 7.9 (0.1) 7.8
============ ================ ========= ============ ================ ========
Earnings/(loss) per ordinary share
Basic 5 (2.2)p 39.1p
Diluted 5 (2.2)p 38.1p
============ ================ ========= ============ ================ ========
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2022 2021
GBPm GBPm
Profit for the period (0.4) 7.8
-------- --------
Other comprehensive income/(expense)
Items that will not be reclassified
to profit or loss (5.0) 20.7
Actuarial gains/(losses)
1.3 (7.9)
Tax on items that will not be reclassified
to profit or loss
-------- --------
(3.7) 12.8
-------- --------
Items that may be reclassified subsequently
to profit or loss
Currency translation movements arising 2.1 (0.2)
on foreign currency net investments
(1.3) (1.0)
Effective portion of changes in fair
value of cash flow hedges - (0.3)
Reclassified to income statement from
hedge reserve
-------- --------
0.8 (1.5)
-------- --------
Other comprehensive income/(expense)
for the period (2.9) 11.3
-------- --------
Total comprehensive income/(expense)
for the period (3.3) 19.1
======== ========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Capital
Share Share Translation redemption Hedging Retained Total
capital premium reserve reserve reserve earnings equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Balance at 1 January
2021 5.0 26.0 0.5 3.9 0.8 10.0 46.2
---------- ---------- -------------- ------------ ---------- ----------- ---------
Profit for the period
- - - - - 7.8 7.8
Other comprehensive
(expense)/income for
the period - - (0.2) - (1.3) 12.8 11.3
---------- ---------- -------------- ------------ ---------- ----------- ---------
Total comprehensive
(expense)/income for
the period - - (0.2) - (1.3) 20.6 19.1
---------- ---------- -------------- ------------ ---------- ----------- ---------
Equity-settled share 0.3 0.3
based transactions - - - - -
Purchase of own shares (0.2) (0.2)
---------- ---------- -------------- ------------ ---------- ----------- ---------
Total transactions
with owners, recorded
directly in equity - - - - - 0.1 0.1
========== ========== ============== ============ ========== =========== =========
Balance at 31 December
2021 5.0 26.0 0.3 3.9 (0.5) 30.7 65.4
========== ========== ============== ============ ========== =========== =========
Profit for the period
- - - - - (0.4) (0.4)
Other comprehensive
(expense)/income for
the period - - 2.1 - (1.3) (3.7) (2.9)
---------- ---------- -------------- ------------ ---------- ----------- ---------
Total comprehensive
(expense)/income for
the period - - 2.1 - (1.3) (4.1) (3.3)
Equity-settled share - - - - - 0.1 0.1
based transactions
Purchase of own shares 0.1 - - - - (0.1) -
---------- ---------- -------------- ------------ ---------- ----------- ---------
Total transactions
with owners, recorded
directly in equity 0.1 - - - - - 0.1
---------- ---------- -------------- ------------ ---------- ----------- ---------
Balance at 31 December
2022 5.1 26.0 2.4 3.9 (1.8) 26.6 62.2
========== ========== ============== ============ ========== =========== =========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
2022 2021
Note GBPm GBPm
Non-current assets
Intangible assets 25.4 25.3
Property, plant and equipment 4.0 4.0
Investment property 0.8 0.8
Right of use assets 5.0 5.8
Employee benefits 4 31.5 35.7
Deferred tax assets 1.3 1.4
---------- ---------
68.0 73.0
---------- ---------
Current assets
Inventories 9.6 5.5
Trade and other receivables 47.3 34.5
Current tax assets 0.6 0.6
Cash and cash equivalents 4.2 14.5
---------- ---------
61.7 55.1
Current liabilities
Lease liabilities (1.4) (1.8)
Trade and other payables (39.0) (39.5)
Current tax liabilities (0.1) (0.7)
Provisions (1.0) (0.6)
Interest-bearing loans and borrowings (8.0) -
---------- ---------
(49.5) (42.6)
---------- ---------
Net current assets 12.2 12.5
---------- ---------
Total assets less current liabilities 80.2 85.5
---------- ---------
Non-current liabilities
Interest-bearing loans and borrowings 7 (0.9) (0.9)
Employee benefits 4 (2.1) (2.5)
Deferred tax liabilities (11.1) (12.5)
Lease liabilities (3.9) (4.2)
Deferred contingent consideration - -
---------- ---------
(18.0) (20.1)
---------- ---------
Net assets 62.2 65.4
========== =========
Equity
Issued capital 5.1 5.0
Share premium 26.0 26.0
Reserves 2.1 3.7
Retained earnings 29.0 30.7
---------- ---------
Total equity 62.2 65.4
========== =========
CONSOLIDATED STATEMENT OF CASH FLOW
2022 2021
Note GBPm GBPm
Operating activities Operating profit
Non-underlying items included in operating - 8.3
profit 3.9 0.5
Amortisation Depreciation 0.9 0.6
Profit on the same of property, plant 2.0 1.8
and equipment - 0.1
Other non-cash items Pension payments 0.2 0.3
Working capital movements: - (increase)/decrease (2.1) (2.6)
in inventories - increase in contract
assets - decrease/(increase) in trade (3.7) (2.2)
and other receivables - (decrease)/increase (5.9) (4.4)
in trade and other payables - (decrease)/increase (6.3) 1.0
in provisions - (decrease)/increase 1.7 (1.1)
in contract liabilities 0.5 (0.8)
(4.0) (0.7)
--------- --------
Cash flows from continuing operations (12.8) 0.8
before reorganisation Acquisition
and reorganisation costs paid (0.8) (0.3)
--------- --------
Cash flows from operations Taxation (13.6) 0.5
paid
(0.4) (0.1)
--------- --------
Cash flows from operating activities (14.0) 0.4
--------- --------
Investing activities Proceeds from
sale of property, plant and equipment
Capitalised development expenditure - 2.0
Acquisition of property, plant and (1.4) (0.2)
equipment Net cash flow on acquisition/payment
of deferred consideration
(1.0) (1.5)
(0.8) (0.6)
--------- --------
Cash flows used in investing activities (3.2) (0.3)
--------- --------
Financing activities Interest paid
Purchase of own shares Proceeds from
borrowings Principal elements of lease
payments
(0.3) (0.3)
- (0.2)
8.0 -
(1.1) (0.9)
--------- --------
Cash flows used in financing activities 6.6 (1.4)
--------- --------
Net decrease in cash and cash equivalents 6 (10.6) (1.3)
Cash and cash equivalents at 1 January 14.5 15.5
Effect of exchange rate fluctuations 0.3 0.3
on cash held
--------- --------
Cash and cash equivalents at 31 December
2022 4.2 14.5
========= ========
NOTES TO ANNOUNCEMENT
1. General information
The Group's accounts have been prepared in accordance with
International Accounting Standards in conformity with the
requirements of the Companies Act 2006 that were effective at 31
December 2022.
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31 December 2022
or 2021. Statutory accounts for 2021 have been delivered to the
Registrar of Companies. The auditors have reported on the 2022 and
2021 statutory accounts; their reports were (i) unqualified, (ii)
did not include references to any matters to which the auditors
drew attention by way of emphasis without qualifying their reports
and (iii) did not contain statements under section 498 (2) or (3)
of the Companies Act 2006.
2. Operating segments
Segment information
12 months to 31 12 months to 31
Dec 2022 Dec 2021
OE Service Total OE Service Total
GBPm GBPm GBPm GBPm GBPm GBPm
-------- -------- -------- ------- -------- -------
Revenue
Americas 40.9 11.9 52.8 53.4 9.9 63.3
EMEA 27.8 9.7 37.5 17.4 9.3 26.7
Asia Pacific 5.9 1.5 7.4 3.3 1.0 4.3
-------- -------- -------- ------- -------- -------
Total 74.6 23.1 97.7 74.1 20.2 94.3
======== ======== ======== ======= ======== =======
Gross profit 24.4 28.9
Selling, distribution
& administration (20.5) (20.1)
-------- -------
Underlying operating 3.9 8.8
profit
Unallocated non-underlying (3.9) (0.5)
items included in
operating profit
-------- -------
Operating profit - 8.3
Net financing expense 0.2 (0.1)
-------- -------
Profit before tax 0.2 8.2
======== =======
Geographical information
Revenue
(by location of customer)
-------------------------------------------
2022 2022 2021 2021
GBPm % GBPm %
UK 9.2 9 7.7 8
Europe (excl. UK) 26.7 27 17.2 18
Africa & Middle East 1.6 2 0.7 1
USA 45.8 47 56.9 61
Americas (excl. USA) 7.0 7 7.2 7
Asia Pacific 7.4 8 4.6 5
------- ------ ------ -----
97.7 100 94.3 100
======= ====== ====== =====
3. Non-underlying items
2022 2021
GBPm GBPm
Acquisition costs (0.3) (0.4)
Reorganisation costs (0.6) -
Amortisation of acquired intangible assets (1.6) (1.6)
Release of deferred consideration costs - 2.4
Defined benefit pension scheme administration (0.8) (1.0)
costs and interest
UK Defined benefit pension scheme - Past - -
service cost for GMP equalisation
Profit on disposal of Coventry facility - 0.3
Interest on deferred and contingent consideration - (0.1)
-------- --------
Total non-underlying expense before tax (3.3) (0.4)
-------- --------
4. Employee benefits
The Group accounts for pensions under IAS 19 Employee
benefits.
The most recent formal actuarial valuation of the scheme was
carried out as at 30 June 2021 using the projected unit credit
method. The market value of the scheme assets at that date was
GBP431.4m and the funding level was 94% of liabilities, which
represented a deficit of GBP28.4m. The principal terms of the
deficit funding agreement between the Company and the Fund's
Trustees, which is effective until 31 December 2035, but is subject
to reassessment every three years are that the Company will
continue to pay a sum of GBP2.0m per annum to the scheme
(increasing at 2.1 per cent. per annum) in deficit recovery
payments.
The funding agreement focusses the scheme and the company on
achieving a funding level which should permit the scheme to achieve
risk transfer to an alternative arrangement which the company would
not be liable for the performance of. Based on annual tests, once
the funding level on a technical provisions basis reaches 103%,
contributions will be redirected to an escrow account which can
only be used by the scheme to either enable risk transfer or remedy
a future deficit arising and would be returned to the company
should risk transfer be achieved without the funds being required.
Should the funding level reach 110% of technical provisions
(including the value of the escrow account), contributions
cease.
The deficit recovery period from 30 June 2021 was estimated to
be four years and six months, which is scheduled to be formally
reassessed following the completion of the actuarial valuation
being carried out as at 30 June 2024.
Formal valuations of the USA defined benefit schemes were
carried out as at 1 January 2022, and their assumptions, updated to
reflect actual experience and conditions at 31 December 2022 and
modified as appropriate for the purposes of IAS 19, have been
applied.
Profit before tax includes charges in respect of the defined
benefit pension schemes' administration costs of GBP1.4m (2021:
GBP1.2m) and a net financing income on pension scheme balances of
GBP0.6m (2021: GBP0.2m). In respect of the UK scheme, the Group
paid deficit recovery contributions of GBP2.0m (2021: GBP1.9m). A
contribution of GBPnil (2021: GBP0.4m), in accordance with the
profit-sharing arrangement in the previous schedule of
contributions, was also paid. Contributions to the US scheme
totalled GBP0.1m (2021: GBP0.3m)
Employee benefits include the net pension asset of the UK
defined benefit pension scheme of GBP31.5m (2021: GBP35.7m) and the
net pension liability of the USA defined benefit pension schemes of
GBP2.1m (2021: GBP2.5m), all figures before tax.
5. Earnings per share
Basic earnings per ordinary share is based upon the loss for the
period of GBP0.4m (2021: profit of GBP7.8m) and on a weighted
average of 20,261,505 shares in issue during the year (2021:
19,920,895). The weighted average number of shares excludes shares
held by the employee trust in respect of the Company's long-term
incentive arrangements.
Underlying earnings per ordinary share amounted to 13.3p for the
year (2021: 39.7p) and is based on underlying profit for the period
of GBP2.7m (2021: GBP7.9m), which is calculated on profit before
non-underlying items.
6. Reconciliation of net cash flow to movement in net funds
2022 2021
GBPm GBPm
Net decrease in cash and cash equivalents (10.6) (1.3)
------- -------
Change in net funds resulting from cash (10.6) (1.3)
flows
0.3 0.3
Translation movements
------- -------
Movement in net funds in the period (10.3) (1.0)
Opening net funds 7.6 10.4
Movement in interest bearing loans and (8.0) -
borrowings
0.7 (1.8)
Movement in lease liabilities
------- -------
Closing net funds (10.0) 7.6
======= =======
7. Analysis of net funds
2022 2021
GBPm GBPm
Cash and cash equivalents - current assets 4.2 14.5
Interest-bearing loans and borrowings (8.0) -
- current liabilities
Interest-bearing loans and borrowings (0.9) (0.9)
- non-current liabilities
Lease liabilities (5.3) (6.0)
-------- --------
Closing net funds (10.0) 7.6
======== ========
8. Contingent consideration
Switchback
The contingent consideration arrangement required the Group to
pay the former owners of Switchback up to US$1.0m (GBP0.7m) in 2021
and 2022 with a minimum payment of US$0.5m in each if Switchback's
annual adjusted EBITDA is at least $1.1m and 50% of the excess over
US$1.1m, up to US$2.1m. The business achieved the target of US2.1m
in both the first and second year and consequently a payment of
$1.0m (GBP0.6m) was paid in both years. The two-year performance
criteria relating to the purchase of Switchback in 2020 has now
concluded.
9. Annual Report and Accounts
Shareholders will be notified, on or around 31 March 2023 of the
availability of the Annual Report and Accounts, together with the
Company's Notice of Annual General Meeting ("AGM"), via a
Regulatory Information Service announcement. Copies of the
documents will be available on the Group's website at
www.mpac-group.com. Shareholders that have elected to receive a
hard copy of the Annual Report and Accounts, together with the
Notice of AGM will receive them shortly after. Details of
arrangements for voting at the AGM will also be notified to
shareholders at the same time. The AGM will be held at 12 noon on
17 May 2023 at the offices of Hudson Sandler LLP, 25 Charterhouse
Square, London, EC1M 6AE.
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 rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR UASWROWUOUAR
(END) Dow Jones Newswires
March 22, 2023 03:00 ET (07:00 GMT)
Mpac (LSE:MPAC)
Historical Stock Chart
Von Dez 2024 bis Jan 2025
Mpac (LSE:MPAC)
Historical Stock Chart
Von Jan 2024 bis Jan 2025
