Shares of UK based packaging and automation solutions firm Mpac Group (LON: MPAC) jumped on Thursday after the company released a trading update for the year ended 31 December 2020 saying that it expects its profit before tax to be above market expectations.
The company said the improvement results from better than expected margins in the fourth quarter, driven by sector mix.
Mpac’s order book heading into 2021 looks strong at £55.5 million, and the company confirmed that to date, no orders have been cancelled due to COVID-19 and they continue to see robust demand, particularly in the healthcare sector and the Americas region.
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“Our pipeline of qualified opportunities and our closing order book give confidence for 2021. The acquisition of Switchback has further enhanced our presence in the Americas and the integration into the wider Group has been successful,” commented Tony Steels, Mpac CEO.
In September 2020, the business reported the acquisition of Switchback group, a US-based supplier of packaging machinery and automation solutions to the food, beverage and healthcare markets. Trading performance at Switchback is said to be ahead of market expectations.
Mpac shares are currently priced at 460p, up 9.52% on the day after initially reaching highs of 478p immediately after the opening bell.