Mpac Group: making steady profits from premium packaging

Mpac Group’s automated packaging machines are sold to blue-chip clients in more than 80 countries worldwide. Dr Mike Tubbs looks at the company's potential for investors.

Kraft Foods packages
The group makes the automated-packaging machines required by the food industry
(Image credit: © David McNew/Getty Images)

The word “packaging” calls to mind a commoditised industry and visions of Amazon’s cheap cardboard boxes. But specialised forms of packaging require sophisticated packaging machinery and provide much more value. A good example is the pharmaceuticals industry, where packaging requires sterile conditions and accurate dosing.

Britain’s Mpac Group (Aim: MPAC) is a key player in the field of specialised packaging. It designs and makes the automated packaging machines needed for the healthcare and food industries. Approximately 50% of its revenue comes from the healthcare sector, with another 45% from food and beverages.

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Dr Mike Tubbs

Highly qualified (BSc PhD CPhys FInstP MIoD) expert in R&D management, business improvement and investment analysis, Dr Mike Tubbs worked for decades on the 'inside' of corporate giants such as Xerox, Battelle and Lucas. Working in the research and development departments, he learnt what became the key to his investing; knowledge which gave him a unique perspective on the stock markets.

Dr Tubbs went on to create the R&D Scorecard which was presented annually to the Department of Trade & Industry and the European Commission. It was a guide for European businesses on how to improve prospects using correctly applied research and development. He has been a contributor to MoneyWeek for many years, with a particular focus on R&D-driven growth companies.