Mpac Group (AIM:MPAC) delivered a year of integration and cost discipline, with gross margin improving by 6.2 percentage points and underlying net margin rising 0.6pp to 10.4%. Service sales remained resilient, accounting for 23% of revenue, and the closing order book stabilised in H2, providing c.66% coverage of forecast 2026 revenue.
The group completed key integration milestones: the first Langen cartoners were assembled in CSi’s Romania facility and North American sites were consolidated after the BCA acquisition. A UK defined-benefit pension buy‑in with Aviva was completed, with c.£5m expected to be returned on wind up. Management also executed restructuring actions in H2 to reduce the cost base and protect margins amid heightened OE price competition.
"We started 2026 with a lower order book, growing price competition and an increasingly uncertain geopolitical environment. The team have responded proactively, taking action to further reduce costs in response to the near term challenges and to position the Group to respond strongly when market conditions improve," said Adam Holland, Chief Executive Officer
Mpac (AIM:MPAC) says it remains comfortably within banking covenants (facility committed to Sept 2027). Management will host an investor presentation at 12:00 BST on 21 April.
