Mpac Group (LSE:MPAC) reported a 42.8% year-on-year increase in order intake to £77.8 million for the first half of 2026, while revenue from original equipment and services declined slightly to £71.0 million.
The engineering and packaging automation group ended the period with an order book of £80.5 million.
Underlying operating profit declined during the first half, which the company attributed to margin pressure from price competition and delays in customer investment decisions.
Services revenue increased 7.1% during the period, with the company reporting that margins in the segment remained at higher levels than those experienced elsewhere in the business.
Lambert Sale Generates £16 Million
Following the end of the reporting period, Mpac completed the sale of its Lambert business for gross proceeds of £16 million.
Net debt stood at £54.0 million at the half-year end and had declined to £43.5 million by August, following the disposal proceeds and subsequent cash movements.
The company has also terminated the lease on a US facility as part of measures intended to reduce costs.
Mpac said its project pipeline was larger and developing at a faster rate than at the same stage last year. The group subsequently reported an order book of £82.5 million, which management said provides revenue coverage for the second half.
Mpac Maintains Full-Year Outlook
Mpac said trading since it lowered its expectations in June has been in line with the board’s forecasts, and its full-year outlook remains unchanged.
The company said customer decision-making globally remained slow, while competitive pricing continued to affect margins. Mpac also identified uncertainty surrounding the effect of new US tariffs on Canadian goods as a factor affecting visibility over the timing of a wider market recovery.
The group remained within its debt covenants and said it continues to focus on working capital management.
Mpac Group Operations
Mpac designs, manufactures and supports automation and packaging machinery for customers in the food and beverage and healthcare sectors.
The group operates through brands including BCA, Langen, Switchback and CSi and provides original equipment and aftermarket services covering areas such as assembly, case packing and palletising. Its operations serve customers across approximately 80 countries.
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