LONDON (ShareCast) - (Sharecast News) - Packaging and automation specialist Mpac Group reported a solid full-year performance in a trading update on Thursday, flagging an underlying profit before tax in line with market expectations.

The AIM-traded firm said the achievement was driven by a notable increase in revenue and profit before tax during the second half compared to the first half, primarily attributed to margin normalisation throughout the year.

It maintained a robust financial position, closing 2023 with a net cash balance exceeding £2m.

Additionally, the company expects to maintain a positive net cash position throughout the entirety of 2024.

Mpac said that within its growth sectors, including healthcare, food and beverage, and clean energy, it had seen strong order intake.

As a result, it ended the year with an increased closing order book valued at £75m, compared to £67.2m in the prior fiscal year.

The increased order book provided substantial coverage for the company's revenue forecasts for 2024.

"We are pleased with the full-year performance, which is in line with market expectations," said chief executive officer Adam Holland.

"The group continued to gain momentum through the year and we will report a substantial increase in revenue and profitability in the second half of 2023 over the first half.

"Mpac's balance sheet remains strong, and we closed 2023 with positive net cash, in line with our expectations."

Holland said the full year's order intake was the highest ever for Mpac, and was comfortably above 2022.

"We start 2024 with an increased order book from our resilient end markets and a high level of coverage of forecast revenue, supporting delivery of our expectations for further growth in the year ahead."

Mpac said its full-year results for the year ended 31 December were expected to be announced in the week of 18 March.

At 1340 GMT, shares in Mpac Group were up 2.92% at 306.2p.

Reporting by Josh White for Sharecast.com.

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