Mpac Group Plc Share News (MPAC)

LONDON (Alliance News) - Packaging company Mpac Group PLC swung to a profit in 2017, the company said on Tuesday, as trading improved with "excellent" progress made on order intake.

Mpac, which was known as Molins PLC until late January, swung to a pretax profit for 2017 of GBP4.3 million from a GBP3.1 million loss in 2016. On an underlying basis, pretax profit was GBP1.1 million from a GBP1.5 million loss.

Revenue for 2017 rose to GBP53.4 million from the GBP41.5 million registered the year prior.

Following a strategic review in 2016, Mpac found while end-markets targeted by its Packaging Machinery division have continued to expand, sales in the nicotine delivery market came under pressure due to increased health awareness and competition from new products.

As a result, Mpac sold its Instrumentation & Tobacco Machinery division in June for GBP30.0 million. Mpac's subsidiary Langen Packaging Inc also sold its manufacturing facility in Canada for GBP5.9 million.

Its name was subsequently changed, to reflect the company's change into one fully focused on packaging machinery.

Revenue was boosted by improved order intake, and Mpac moved into 2018 with an order book of GBP34.4 million, 35% higher than the same time a year earlier.

Mpac will not be paying a dividend for 2017, though it will consider this position again at the end of 2018.

Looking forward, Mpac said it has made excellent progress on its strategic plans, and the company has the financial resources to develop the business. Given the stronger year-on-year order book and sales rising on last year, the company is positive moving ahead.

Shares were down 6.4% on Tuesday at 167.49 pence each.