Simon Thompson 

Mpac back on track

Simon Thompson

Simon Thompson

Shares in Mpac (MPAC:125p), a small-cap niche packaging engineering business and a constituent of my 2018 Bargain Shares portfolio, slumped below my 156p entry level after the company warned on profits in the summer (‘Investors overreact to Mpac cost overrun’, 18 July 2018). The problems relate to cost over-runs on two technically challenging legacy contracts, one of which is a UK-based project to deliver a first-of-a-kind healthcare production device. The second is a Canada-based project which hit issues in the commissioning stage in relation to the robustness of the packaging line and product variability.

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