12 December 2016 – trading update
A weak trading update from Molins is unwelcome news for shareholders. Trading in the final quarter has been materially lower than expected, partially due to an unfavourable sales mix and a number of deliveries delayed into the early part of 2017. Expectations for full year performance have been revised downwards. On a more upbeat note, order intake in the last three months has been positive, at an increase of 80% over the same period last year. The Packaging Machinery businesses has performed notably well and recent order activity means that the order book moving into the new year will be higher than a year earlier. Given the low market capitalisation we see scope for recovery and rate the shares as a BUY.
The development of the Group’s strategic plan is continuing positively. This review is aimed at ensuring the Group is in the best position to serve its customers, and is focused on market opportunities and operational efficiency. The outcome of this review is expected to be presented in Q1 2017.