Mpac Group Shares Crash 20% as Profit Warning and Lambert Sale Signal Deepening Pressure

Shares in AIM-listed Mpac Group (LON: MPAC) plunged as much as 20% on Monday morning, falling from Friday’s close of 263p to a low of 200p, after the packaging and automation specialist issued a stark profit warning alongside the surprise sale of its Lambert division.

The company warned that FY 2026 underlying profit before tax is now expected to be “substantially below current market expectations” on a like-for-like basis. Management cited delays in customer capital investment decisions, heightened competitive pricing pressure, and lower operational leverage from reduced original equipment volumes as the key drivers. First half margins are expected to come in below the prior year comparative.

The update marks a notable deterioration from guidance issued just weeks ago in April, when Mpac flagged that the full year would be “second half weighted” amid uncertainty linked to the Middle East conflict. Since then, conditions have worsened materially.

Alongside the trading update, Mpac announced the sale of its Lambert subsidiary to Italian automation firm Mech.i.Tronic S.p.A. for an initial cash consideration of £16.0m, with up to £4.0m in additional earn-out payments, giving total potential proceeds of £20.0m. The proceeds will be used to reduce Group net debt, which stood at £47.9m at end of 2025.

Lambert, founded in 1973 and acquired by Mpac in 2019 for £15.0m, employs around 160 people in Tadcaster and posted a pre-tax loss of £1.6m in FY 2025. Management described the disposal as part of a broader strategic realignment towards “scalable, full-line packaging machinery solutions.”

CEO Adam Holland said the Group has “acted decisively” on costs and capacity and remains focused on cash generation and deleveraging, but acknowledged near-term market uncertainty persists. The order book improved to £98.8m at end of May, up from £90.0m at end of December 2025, offering some modest encouragement.

The Transaction remains subject to clearance under the National Security and Investment Act 2021, expected during Q3 2026.