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.
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
Tony Steels, Chief Executive
Will Wilkins, Group Finance Director
Tel: +44(0)24 7642 1100
Panmure Gordon (UK) Limited (Nominated Adviser & Broker)
Andrew Potts - Corporate Advisory
James Stearns - Corporate Broking
Tel: +44(0)20 7886 2500
Tel: +44(0)20 7796 4133
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