Mpac Group (AIM:MPAC) expects FY 2026 underlying profit before tax to be substantially below current market expectations and has entered an agreement to sell Mpac Lambert to Mech.i. Tronic S.p.A for an initial cash consideration of £16m plus up to £4m of contingent consideration.
The trading update, covering trading to the end of May 2026, said first-half margins will be below the prior year as delays in customer capital decision-making, heightened OE pricing competition and reduced operational leverage have continued to pressure gross margins, while the order book has improved to £98.8m (31 Dec 2025: £90m) and the Group is a global supplier of high-speed packaging and automation solutions.
“This transaction represents a positive outcome for employees and customers and, on closure, will deliver a significant reduction in net debt for the Group,” Adam Holland, Chief Executive, said.
Completion is subject to clearance under the National Security and Investment Act 2021 expected in Q3, the initial consideration includes SIGA Vision and the up-to-£4m earn-out is payable based on Lambert’s results for the year ending 31 December.
Lambert, acquired by Mpac in 2019 for £15m, is a bespoke automation specialist based in Tadcaster with about 160 employees, net assets of £2.1m and a loss before tax of £1.6m in FY 2025.
Mpac said net proceeds will be used to significantly reduce Group net debt, which stood at £47.9m at 31 December 2025, and that it has taken actions to drive volume, align capacity, cut overheads and improve cash generation.
Management will host a live investor presentation via Investor Meet Company at 16:30 BST today.
