The company’s revenue growth for the 26 weeks to 30 June was driven by a 17% increase in original equipment and a 6% rise in service revenue.
Mpac’s H1 order intake amounted to £32.8m, down by 36% from H1 2021, primarily because of customers placing orders earlier than anticipated in the fourth quarter (Q4) of 2021 for lead times.
Its underlying profit before tax dropped from £4.7m to £1.1m year-on-year, while its underlying earnings per share also declined to £0.04 from £0.18 in H1 2021.
Mpac’s net cash for H1 was £9.5m, against £11.2m in the prior-year period. Its cash balances were affected by the timing of project order intakes and related working capital cycles.
The company’s board believes that it is on track to meet revised market expectations.
Mpac chief executive Tony Steels said: “We have made good progress in delivering on our existing customer commitments and managing short-term operational challenges.
“Consequently, revenue has grown but at lower margins due to cost inflationary pressures and ongoing disruption to global supply chains, in particular, relating to the sourcing of critical, customer-specified electronic components.”
Mpac believes that the momentum it built in previous years will allow it to recover its growth path as issues develop in the supply chain.
Steel added: “Our order book and prospect pipeline remain robust in our resilient end markets, demonstrated by securing contracts from new customers and making progress towards concluding a commercial agreement for the supply of battery cell automation solutions to Freyr, which gives us further confidence that the strategic objectives will deliver long term revenue growth.”