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This small cap is up 230% and is still a bargain

Simon Thompson: This packaging systems provider is slashing borrowings and delivering 18 per cent earnings growth
This small cap is up 230% and is still a bargainPublished on January 17, 2025
  • Pre-tax profit up almost 50 per cent to £10.5mn
  • Over 50 per cent order book coverage
  • 2025 PE ratio of 11.8 and 8 times cash profit to enterprise valuation
  • 52 per cent share price upside to analysts’ consensus target

Mpac (MPAC:523p), a specialist provider of automated packaging systems, expects pre-tax profit to exceed £10mn for the first time in its history when the group releases annual results in late April.

Buoyed by operational efficiencies and improving project margins, second-half pre-tax profit of £6.6mn was materially higher than the first-half profit of £3.9mn, with the operating margin rising from 7.5 to 11.9 per cent. On this basis, full-year pre-tax profit of £10.5mn is not only expected to exceed the previous record of £8.6mn in 2021, but will be almost 50 per cent above the 2023 result.

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