Mpac Group Plc Share Price (MPAC)

Following publication of Mpac Group's Full Year results, Tony Steels, CEO, and Will Wilkins, Group Finance Director ran investors through the detailed highlights and financials of the period, as well as showing investors a video on the new Mpac facility in the USA.

They provided updates on strategy, the progress that has been achieved in the US to date, the ongoing market drivers around the removal of plastic from packaging, and the opportunity for M&A to expand both geographically and into new verticals. The team also answered a range of investor questions, and the full video is available below (divided into chapters for ease of viewing):

0:00:00 Intro
0:00:24 Mpac USA video
0:03:44 Company introduction and FY21 results overview (Tony Steels, CEO)
0:10:13 Strategy: business model, growth markets, goals & priorities, case studies (Tony Steels, CEO)
0:26:34 Financial highlights for FY21 (Will Wilkins, Group FD)
0:37:01 Outlook (Tony Steels, CEO)
0:38:45 Questions & Answers

Video link: https://www.equitydevelopment.co.uk/research/mpac-fy-results-investor-presentation-21march22

New research here: https://www.equitydevelopment.co.uk/research/fy21-results-the-strategy-delivers

FY21 results reflected the fruits of Mpac’s strategic initiatives, underpinned by growth in the US and the One Mpac integration process. EBITDA (adj.) grew +42%YoY to £11.2m, which was ahead of our outlook of £10.3m. Order intake crossed the £100m mark for the first time.

Performance highlights and medium-term strategy. The contribution of strong demand from the Americas, where the US alone contributed 60% of revenue, is clear, with demand from Europe (18% of total) an additional driver to order intake. The group opened its US headquarters and showcase facility in Q3. Mpac Switchback in the US continued to trade strongly, ahead of management expectations.

Cashflow management provides tangible evidence of the improvements in operational efficiency resulting from the One Mpac initiative, for example in global ERP, unified engineering, CRM and project management. This carefully planned initiative should remain important in the light of industry-wide challenges of supply chain pressure or components and materials costs. The clean energy diversification with FREYR Battery, for prototype volume production of lithium-ion battery cells, remains on track for completion of the initial development line in Q4 22.

Mpac aims for double-digit top line growth over the medium-term, focusing on the healthcare and food & beverage sectors – both areas of robust demand - and an EBIT profitability target of 10%. The Group continues to appraise acquisition opportunities where there is potential to broaden solutions on offer and customer base.

Our outlook places Mpac on a prospective FY23 EV/EBITDA of 8.6x and PE of 11.3x; for FY24, 8.0x and 10.6x respectively. Our fair value for Mpac shares remains 660p.

Mpac, the specialist international business providing high speed packaging machines and complimentary services, will be conducting an Investor Presentation webinar covering their FY Results to the period ending 31st December 2021.

The online presentation will be hosted by Tony Steels, CEO, and Will Wilkins, Group Finance Director.

This event will take place at 10.30am on Monday 21st March.

The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.

Sign up here to register:
https://www.equitydevelopment.co.uk/news-and-events/mpac-fypresentation-21march2022

#MPAC A reassuring TU today from #MPAC with expectations inline and a strong year end closing order book of £77m (39% up YoY). We hold our fair value at 660p and look forward to further developments in the clean energy vertical via the contract with FREYR.

https://www.equitydevelopment.co.uk/research/trading-update-confirms-a-strong-fy21

https://www.energy-storage.news/norways-freyr-battery-signs-us3-billion-off-take-deal-with-energy-storage-industry-customer/

“FREYR Battery, a European startup developing advanced lithium-ion battery cells for mass production, has signed a 31GWh off-take agreement with an energy storage system manufacturer.

One of about two dozen established and new players seeking to create gigafactories in Europe, Norway’s FREYR wants to initially build out production capacity at four factories powered by renewable energy, including its home country’s abundant hydropower resources.

Work is already underway on its initial 2GWh plant in Mo i Rana, Norway and the company has signed a technology partnership with US advanced battery tech company 24M, developer of a novel manufacturing platform called SemiSolid.

Battery cells made using the platform have thicker electrodes than other types and can be much higher energy density with lower production costs than other cells, the companies have claimed.

FREYR said yesterday that it has signed the deal to supply “at least 31GWh” of its low-carbon battery cells to a publicly-listed manufacturer and provider of energy storage systems (ESS).

The customer’s name has not been disclosed at this stage, but it is FREYR’s first “significant” off-take deal, CEO Tom Jensen said.

Cells will be delivered over five years from 2023 to 2028, from FREYR’s manufacturing facilities in Norway and the battery company forecasted the deal could be worth about US$3 billion.

“This development advances us towards a final investment decision, the start of construction on our initial Gigafactories, and industrial-scale commercialisation of FREYR’s clean battery cells,” Jensen said.

Remember, from July, “ Mpac Group plc, a global leader in high-speed packaging and automation solutions, announces that its Mpac Lambert ("Mpac") business has signed a contract with FREYR Battery ("FREYR") for the supply of the casting and unit cell assembly equipment package to the battery cell production line at FREYR's Customer Qualification Plant ("CQP") in Mo i Rana, Norway.”