LONDON (ShareCast) - (Sharecast News) - Packaging firm MPAC Group on Thursday swung to a first half loss but its board remain positive due to an order book "broadly in line" with the level seen a year ago.
The company's total loss for the six months ended 30 June was £0.9m, down from a profit of £0.9m in the same period last year, as an 11% increase in revenues to £28.2m was offset by a 22% increase in cost of sales.

At 30 June the company had cash and cash equivalents of £25.8m, up from £6m at the same point last year.

Tony Steels, chief executive, said: "It's been a mixed start to the year, with good progress in a number of areas, counter-balanced by delays in two legacy contracts. I am disappointed that the momentum built in the previous year has been slowed due to the current business environment with investment decisions taking longer to conclude."

The two legacy contracts, which contributed to a reduced gross margin from £7.1m to £5.9m, where "technically difficult", with one requiring a hand-packaged feel and the other involving a healthcare device production line of high complexity.

The company also points to "general economic uncertainty", undoubtedly catalysed by the current standing of Brexit negotiations, as the culprit for the slowdown in business.

"Since the end of June a significant value order was secured for delivery in 2019 which gives us further confidence that the strategic objectives will deliver long term revenue growth. The fundamentals of our business remain strong, we are well capitalised, and fully focused on executing our strategic plan," said Steels.

MPAC Group's shares were up 2.10% at 121.50p at 0918 BST.

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