I do think that given this environment MPAC has performed OK. They have generated cash (£22.5m net from £18m in December) , but the Order Book is considerably down (£45.4m v £52.2m at Dec 2019). Though there was an increase year on year (£45.4m v £39.9m June 2019). As MPAC is a lumpy business rather than a cyclical one, the last 6 months comparator is a better one than the YoY. Margin increased from 28.6% to 30.7% as the higher margin Service business held up better than the OEM side. In reality the Service business is principally a Parts business.
They have controlled costs and did deliver a small profit for the ½ year. They have added digital capability and changed their supply side to allow greater remote customer testing and acceptance. That being said the underlying issue is that the product is not an impulse purchase and requirements major customer commitment in a largely uncertain world, though MPAC is well focussed on the Healthcare, Food & Beverage and Pharmaceutical markets. It is also fair to say that all the good things MPAC had been developing or benefitting from (One MPAC, Reshoring) are still very much ongoing factors that will put MPAC in a strong position.
MPAC was keen to suggest that their technology, both in development and delivery is ahead of most of the market and that this will bring results going forward. But this forward does depend on the move to a post Coronavirus world.
MPAC remains my largest single shareholding and whilst these results were not all I wished them to be the company still seems to be delivering on their strategy, amended as it is for Coronavirus and well poised for the future. There was a strong run up before the results and a significant fall thereafter. Should the fall continue I may buy more. All my holdings have a trigger point at which I should decide to buy more or sell. If MPAC hit this I am a buyer. Equity Developments has a target price of 350p which to me does not seem unreasonable.
As an aside the company has talked about acquisitions before and last year took on Lambert Automation which continues to help the company significantly change itself, adding both capability and strengthening the range. The company in these results and their presentation continued to beat the acquisition drum and this was also reflected in the analyst note from Equity Development which specifically refers to money being kept in the business for an acquisition. It is all too maybe for me to value, but an announcement certainly would not be a surprise.
As always DYOR my risk profile and timescales is different than yours.