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Mpac Group PLC on Tuesday warned full-year revenue will fall significantly below previous expectations due to slower market conditions in the US. The Tadcaster, North Yorkshire-based high-speed packaging and automation solutions firm said original equipment order intake in its core business slowed materially through the second quarter, as customers responded to growing uncertainty around tariffs and low consumer confidence by deferring capital investments and cutting back on spending. ‘Customers have increasingly chosen to defer capital investment decisions, with the Americas region being at the epicentre with other regions less impacted to date,’ observed Chief Executive Adam Holland. In response, shares in Mpac plunged 28% to 310.00 pence each in London on Tuesday. The closing order book at June 30 is expected to be around £90.0 million, down from £118.5 million at the end of 2024, providing ‘materially’ lower than anticipated cover for second-half revenue, with the Americas region particularly impacted. Mpac said the services business has remained broadly unaffected, and both of the 2024 acquisitions, BCA and CSi, continue to trade well and in line with management expectations, with CSi specifically benefiting from limited exposure to the US. Mpac explained second order intake is an important period as orders secured in the period drive second-half revenue flow. As a result, due to the expected impact from slower orders in the second quarter Mpac now expects full-year 2025 revenue to fall significantly below previous expectations. In 2024, Mpac reported revenue of £122.4 million, with original equipment sales of £91.2 million. Revenue in the first half was in line with the board’s expectations, Mpac added. Given the current slower market conditions in the US, Mpac has decided to accelerate plans to consolidate its operational footprint in the US, optimising capacity and the cost base. The facility in Cleveland Ohio will be closed, while capacity in Mississauga, Canada will be reduced. The restructuring will incur non-cash impairment charges of around £11.5 million. This and other cost saving measures have been designed to maintain existing operating margins despite the reduction in revenue, Mpac added. More positively, Mpac announced a £249 million ’buy in’ transaction for its UK defined benefit pensions scheme which will help simplify the balance sheet and eliminate a significant risk to future profitability and cash flow. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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