The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
https://mpac-langen.com/adapt-grow-2020-is-a-global-success/
I see combined technology bits of Ocado and Blue prism integrated into one intelligent packaging system. I honestly think the price we see today is far away from reality. At 44 million market cap, with a turnover of 88 million, Mcap can easily become a 200 million market cap in one year. I can see a £5 by Christmas then the sky is the limit.
Nice timing! I'm a newbie, though I'd been watching it for a while: bought at end of March. Just marginally up. Waiting for an update........................
Qd22
your comment made me look back and there has been no news or comment since the bullish news and ED report at the beginning of May
I have bought back in today after having sold at the beginning of Feb
Last year there was a trading update 16th July. Looking forward to it.
Could be a dark horse (robotic of course).
Given it's work in both healthcare and pharmaceutical supply I'm surprised that this has moved so little. And especially in these sectors robotic packaging and handling is surely all the more important now.
yep, great little company.
Making money, growing revenues and no debt.
MPAC GROUP.....
LATEST REPORTS
Mpac - Well placed and cash rich
Published: 6th May 2020
Mpac is well placed to survive the COVID-19 induced downturn, exploit opportunities that arise and flourish when the economy eventually gets back on its feet. With a £18.1m net cash balance (or 89p/share as at Feb’20), on top of an undrawn £10m credit facility, this provides ample fire-power to not only weather even the most extreme of scenarios, but also take advantage if some less well capitalised rivals ever became available at distressed levels.
Mpac have reduced/deferred capex (£2.3m 2019) and discretionary spend, alongside utilising government aid. They have, however, remained mindful not to harm the long term design and operational capability.
With regards to valuation, the stock at 235p remains attractively priced - trading on a 2019 EV/EBIT multiple of 7.4x (see below) vs 11x–15x typically for peers (pre CV19).
Sure the coronavirus will impact 2020 numbers, yet ultimately we believe Mpac will prosper. Benefitting from secular tailwinds (eg Industry 4.0, Direct-to-consumer deliveries), improving margins, a large installed base, positive cashflows and a host of loyal, blue-chip customers.
https://research.equitydevelopment.co.uk/research/well-placed-and-cash-rich?utm_campaign=Mpac&utm_source=hs_email&utm_medium=email&utm_content=87483000&_hsenc=p2ANqtz-8FWkAgxBt-Ge6XdRx94rO1CrXEWmu65oPABH0mdJLwH1DXquktPBzDNZfLSnuZWzRGmo7U_rwdCKxWUysmCGwy-HnB3w&_hsmi=87483000
Mpac has a strong balance sheet, is well financed and remains debt free and is therefore very well positioned to navigate the COVID-19 pandemic. The Group has c.£19m of cash and cash generation in the first two months of the year was in line with management's expectations. Additionally, the Group has access to a £10m secured committed revolving facility which is currently fully undrawn. Even in cautious downside scenarios which we have modelled, and stress tested, we expect to have sufficient liquidity from existing resources to meet our needs throughout 2020.
I'd suggest current level sp it's pretty much priced in and MCAP nicely positioned for recovery in a few weeks , it's all about boucebackability potential for companies, thankfully MCAP are financially sound
https://twitter.com/surprised_trade/status/1242773635548483589
MPAC clearly room for a lot of upside from 2.03p on techs (see chart in tweet) & fundamentals
https://twitter.com/surprised_trade/status/1241641743730331648
'' market leader in the provision of full-line packaging solutions for the pharmaceutical, healthcare and food and beverage sectors''
https://twitter.com/surprised_trade/status/1238875389319172097
Symbol
MPAC
Listing
AIM
Share Price
305p
Market Cap
£61.5m
Sector
Industrials
Published
04/03/20
Analyst
Paul Hill
Dear Mick
Buying wonderful businesses that are benefiting from multiple secular growth trends, at attractive prices is part & parcel of successful long term investing. The problem as always, is finding these rare situations, and then having the stomach to step in, irrespective of the broader macro concerns doing the rounds.
We think Mpac falls into this camp. Today releasing “excellent” 2019 revenues, adjusted EBIT and EPS that were in line with expectations at £88.8m (+52%, +24% LFL), £7.7m (margin 8.7%) and 39.5p respectively. The dividend was also reinstated to 1.5p (7.6p), reflecting good H2 cashflows and closing net funds of £18.0m (vs £9.6m June’19), equivalent to 89p/share.
Better still, after strong pipeline conversion in H2, forward visibility is robust with the backlog closing Dec’19 at £52.2m (vs £53.1m LY) - split across a wide customer base, and skewed towards higher margin healthcare orders.
In terms of the Coronavirus, the Board believe the outbreak shouldn’t materially impact future profits. The vast majority of Mpac’s top line growth is coming from Healthcare (74%) within the US (58%). Whilst it’s relatively modest supply-chain/demand exposure within AsiaPac (8% 2019 turnover) is manageable.
Going forward, we’ve nudged up our 2020 EBIT to £7.7m (2.7%) on the back of the slightly better out-turn, and maintained both the revenue at £95.5m & 350p/share valuation.
MPAC....Broker note.........
https://www.equitydevelopment.co.uk/edreader/?d=%3D%3DgM5YjM
tomorrow & this could fly as expectations are high. GLA
4th March
Asked that same question of Mpac and got a very prompt and courteous response, but not really an answer:
"The management of Mpac remain vigilant to the potential impact of the spread of the coronavirus and we will remain in contact with customers and suppliers to continually access whether an announcement is required in respect of current trading"
I think it's a super business.
Following Tekmar (TGP) results TODAY, flagging up China's negative effects, I will not top up on here until the results and the visibility regarding Coronavirus is known. Does anybody believe MPAC would be affected by China standstill economy ? What's MPAC market share in China and neighboring countries ? I think this is very important when one takes a look at TGP results.
I think many do not understand the speed of growth of this company. Thus why updates are in series. Those who know the outcome have already bought and continue to buy before they miss the last boat, I mean opportunity, because PI's will have to chase it at prices in the mid £4+ very soon.
Interesting IC reports (Strong Buy - Probably the tip):
hTtps://www.investorschronicle.co.uk/comment/2020/01/13/on-the-upgrade/
I have looked and was following Mpac for a few months. Since it upgraded its already upgraded numbers, I cannot find a defensive and yet growth stock to tuck away for the long term. Why the long term ? This is because Mpac is exposed to so many various industries that its growth will be difficult to quantify accurately. Thus why it has to revise up its numbers. Growth and defensive stocks are nowadays rare and Mpac is one of them. Happy to buy and top up on any retracement.
And repeat. Still (!!) only on a pe of 8.2x ex cash. This must get to 10x in a scoot. Results in out in 4 weeks should be superb.
Another rise. Still only on 7.6x pe ex cash.
Small Cap Share Watch. It's a paid monthly publication.
Even after the rise today, this is on 6.5x pe ex cash.... If you want an alternative, read the free equity development piece on mpac... very thought provoking