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Mpac Group PLC on Monday warned it expects full-year underlying pretax profit to be ‘substantially below’ current market expectations on a like-for-like basis, while also announcing the sale of a non-core business division. In response, shares in the Tadcaster, North Yorkshire-based high-speed packaging and automation solutions company plunged 24% to 227.00 pence each in London early Monday. Earlier, they set a new 52-week low of 200.00p. Mpac said trading margins have continued to be hurt by delays in customer decision making, competitive pricing pressure, and lower operational leverage from reduced volumes. As a result, it expects first half margins to be below the prior year, and full-year underlying pretax profit to be ‘substantially’ below current market expectations on a like-for-like basis. In 2025, Mpac reported underlying pretax profit of £13.5 million and underlying net margin of 10.4%. Reflecting on the trading update, Panmure Liberum cut its full-year 2026 adjusted pretax profit forecast for Mpac by 43% to £8.5 million from £15.0 million and 2027 by 32% to £11.4 million from £16.9 million. The broker lowered its share price target for Mpac to 350p from 550p but retained a ’buy’ rating. In response to the trading environment, Mpac said it has implemented further actions to drive volume, align operational capacity with current demand levels, reduce overhead costs and to improve cash generation. Benefitting from these actions, the order book at the end of May improved to £98.8 million from £90.0 million at the end of 2025. Chief Executive Officer Adam Holland said trading has ‘remained challenging’ but added the group is well placed to rebound strongly when market sentiment recovers. Mpac said it continues to focus on ‘maintaining appropriate liquidity and covenant headroom.’ This position will be materially improved by the proceeds from the up to £20 million sale of its bespoke automation solutions Lambert, also announced on Monday. The business was deemed not to ‘fit within the group’s ongoing strategy,’ after a strategic review. Mpac bought Lambert for £15.0 million back in 2019. The business is headquartered in Tadcaster, and at the end of 2025 had net assets of £2.1m. It generated a pretax loss of £1.6 million last year. Mpac has sold Lambert for an initial £16 million to Mech.i. Tronic Spa, an Alessandria, Italy-based provider of automation technologies. A further up to £4.0 million may become payable, subject to the financial performance of Lambert during 2026. Proceeds from the sale will be used to ‘significantly’ reduce group net debt, which stood at £47.9 million at the end of 2025. The sale represents a ‘positive outcome for employees and customers,’ said CEO Holland. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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