Why Mpac Shares Have Retreated 6.5% Despite Sharp Order Book Recovery

Mpac Group (LON: MPAC), the AIM-listed Coventry-based maker of packaging and automation machinery for the Healthcare and Food & Beverage sectors, published unaudited results for the six months to 30 June 2026 before markets opened this morning. Shares fell roughly 6.5% during the trading session that followed, as markets focused on a sharp profit decline rather than a strong recovery in orders.

The stock closed yesterday at 347.5p and traded down to around 325p today, within its 52-week range of 200p to 405p. Mpac’s market capitalisation stood at £104.5m ahead of the results.

This was Mpac’s first full half since agreeing to sell its loss-making Lambert business, completed on 24 July for £16m in gross proceeds, subject to an earn-out. Order intake rose 42.8% to £77.8m, up from £54.5m a year earlier. The order book grew 5.6% to £80.5m at the half-year point, and had grown further to £82.5m by the announcement date. Revenue from continuing operations was £71.0m, down 2.3% from £72.7m in H1 2025.

Despite the order recovery, gross margin fell to 30.1% from 36.7%, pulling underlying operating profit down 46.8% to £4.2m and underlying pre-tax profit down 62.5% to £2.1m. Underlying earnings per share fell to 5.7p from 14.0p. Statutory loss before tax from continuing operations narrowed to £(0.5)m from £(8.8)m, with basic loss per share improving to (0.8)p from (34.2)p. Including the discontinued Lambert business, the group’s total loss for the period was £8.7m, versus £10.8m a year earlier, reflecting a £7.2m non-cash impairment tied to the disposal.

Chief executive Adam Holland said the Lambert sale had “aligned the Group around a clear strategy, and improved liquidity.”

Net debt stood at £54.0m at the half-year point, before Lambert proceeds, up from £43.2m a year earlier, falling to £43.5m by the end of August once the £16m sale payment came through. Management reiterated unchanged full-year guidance. No dividend was declared.