Packaging and automation company Mpac Group (LSE:MPAC) Plc shares fell Wednesday after its annual profits fell as its costs rose in 2022.
During the 2022 financial year, the company reported revenue of £97.7 million, up from £94.3 million in 2021.
But its pretax profit slipped to £200,000 from £8.2 million, as cost of sales increased 12% year-over-year.
Underlying profit before tax £3.5 million, down from £8.6 million a year earlier.
The firm also announced the departure of chief executive Tony Steels, who leaves the role in favour of Adam Holland, Mpac’s current chief operating officer.
Steels joined Mpac in 2016.
"Mpac is extremely well positioned for the next stage of its development, and I am confident in the long-term prospects of the group,” Steels said in a statement.
Commenting on its 2022 results, Steels added: "Mpac once again demonstrated its agility in implementing mitigations to deliver a second half recovery. This was in the face of increased macro-economic uncertainty and unprecedented volatility in the global supply chain which impacted both the lead time of customers' order placement and caused operational challenges.
"The group responded dynamically to continue to meet customer expectations and increase service revenue. The group ended 2022 with a strong closing order book and a healthy prospect pipeline, providing good coverage over 2023 forecast revenue."
Shares of Mpac were down 12.3% in early Wednesday trading at around £245.65.