Interim Results

LPA Group PLC
23 June 2004


LPA Group PLC
23rd JUNE 2004


                        Interim Unaudited Group Results
                     for the Six Months ended 2 April 2004


LPA Group Plc, the electrical and electronic equipment manufacturer and
distributor, announces a return to pre tax profit of £39,000 (2003: loss of
£288,000) for the six months ended 2 April 2004.


KEY POINTS

Turnover                      Increased 13.9% to £6.7m      (2003: £5.9m)

Profit Before Tax             £39,000                       (2003: LOSS £288,000

Earnings Per Share
Basic                         0.28p                         (2003: LOSS 2.33p)
Diluted                       0.27p                         (2003:LOSS 2.33p)
Adjusted (before goodwill     0.70p                         (2003:LOSS 1.91p)
amortisation)

Dividends                     Interim resumed at 0.15p      (2003:Nil)

Gearing                       Reduced to 69%                (2003:81%)




Group profitable over last twelve months

Continuing strong order entry with several important new contracts won

Heavy level of tendering with encouraging opportunities in rail market
particularly in refurbishment, London Underground and Export.

Continuing improvement in operational performance.


Peter Pollock, Chief Executive, commented

'We have moved on from an unstable condition a year ago through stability to a
situation where we are beginning to move forward. We have a strong management
team. We are building a strong long-term order book for the future. Our
objectives are to continue to build order entry both in home and export markets,
to improve operational performance and profitability, to grow organically and by
acquisition and to deliver long term shareholder value. We look forward to
continuing progress'



Enquiries:

Peter Pollock        Chief Executive                      01799 512844
Stephen Brett        Finance Director                     01799 512860
Christopher Hardie   Teather & Greenwood Limited          020 7426 9000
Robert Naylor        Teather & Greenwood Limited          020 7426 9000


23 June 2004





Interim Unaudited Group Results for the Six Months ended 2 April 2004

CHAIRMAN'S STATEMENT

In my statement to shareholders a year ago I said that 'the new management
structure and the unified sales force appears to be making progress' and that
there was 'clear evidence of the business units working together to reduce cost
and improve performance'. I am delighted to report that this strategy has proved
successful and that the Group is in substantially better condition now than it
was a year ago.

A profit before tax of £39,000 was achieved for the six months to 2 April 2004
against a loss before tax of £288,000 in the same period last year. Taken with
the profit made in the second half of last year, the Group has traded profitably
over the last twelve months. Turnover increased by 13.9% to £6.74m (2003:
£5.92m). Basic earnings per share amounted to 0.28p per share (2003: loss per
share of 2.33p). Gearing reduced to 69% at the period end from 82% at the
year-end. The interim dividend has been resumed at 0.15p per share (2003: Nil)
and will be paid on 24 September 2004 to shareholders registered at the close of
business on 3 September 2004.

Despite a very strong orders performance in the first half of last year (it was
up 43% over the previous year) order entry is up a further 3%, and over the last
two months it has been significantly stronger with many opportunities still in
prospect. Many of the major new contracts recently reported have been for
long-term refurbishment projects of existing rolling stock including both
Electric Multiple Units and Diesel Multiple Units as well as London Underground.
These contracts are securing the future of the Group. Last year order entry
weakened in the second half, which restricted progress during the first half of
this year. There is no sign of a similar weakening in order entry this year and
the high level of tendering continues.

The new sales structure and strategy is proving very successful. Marketing and
selling the entire Group product range, 'a one stop shop philosophy' with system
integration capability, is entirely in keeping with our larger customers' desire
to reduce their vendor bases. Thus we are offering a wider scope of supply and
winning contracts that utilise capabilities from the different operating units
of the Group. We are seeking to develop closer relationships with our main
customers wherever they manufacture in Europe and beyond.

Operationally we seek improvements at each operating unit and regularly review
progress. There are no major capital expenditure programmes planned this year,
but a number of improvement projects, particularly in information technology,
are under way.

The Group is well placed to benefit from current opportunities. Profitability
improvement, cash flow improvement and gearing reduction are the current
short-term goals coupled with sustaining and increasing order entry. The
longer-term future for the Group is much improved. The Board is much more
confident about future progress. Although much remains to be done, we have a
strong management team dedicated to delivering further progress.



Michael Rusch
Chairman
23 June 2004







CONSOLIDATED PROFIT AND LOSS ACCOUNT
£000's                                                           6 months to       6 months to           Year to
                                                                2 April 2004     31 March 2003      30 Sept 2003
                                                                   Unaudited         Unaudited           Audited

Turnover                                                               6,740             5,919            12,574

Operating profit / (loss)                                                136             (277)              (97)

Profit on sale of tangible fixed assets                                    -               106               106

Profit / (loss) on ordinary activities before interest                   136             (171)                 9

Net interest payable                                                    (97)             (117)             (217)

Profit / (loss) on ordinary activities before taxation                    39             (288)             (208)

Tax on profit / (loss) on ordinary activities                            (9)                34                84

Profit / (loss) on ordinary activities after taxation                     30             (254)             (124)

Dividends                                                               (16)                 -              (27)

Retained profit / (loss)                                                  14             (254)             (151)

Earnings / (loss) per share
Basic                                                                  0.28p           (2.33p)           (1.14p)
Diluted                                                                0.27p           (2.33p)           (1.14p)
Adjusted (before amortisation of goodwill)                             0.70p           (1.91p)           (0.28p)

Dividend per share                                                     0.15p               Nil             0.25p





CONSOLIDATED BALANCE SHEET
£000's                                                                 As at             As at             As at
                                                                2 April 2004     31 March 2003      30 Sept 2003
                                                                   Unaudited         Unaudited           Audited
Fixed assets
Intangible assets                                                      1,467             1,560             1,513
Tangible assets                                                        2,539             2,891             2,651
                                                                       4,006             4,451             4,164

Current assets
Stocks                                                                 2,386             2,535             2,647
Debtors                                                                2,871             2,645             2,895
Cash at bank and in hand                                                   3                 4                 3
                                                                       5,260             5,184             5,545

Creditors: Amounts falling due within one year                       (3,473)           (3,497)           (3,707)

Net current assets                                                     1,787             1,687             1,838

Total assets less current liabilities                                  5,793             6,138             6,002

Creditors: Amounts falling due after more than one year              (1,795)           (2,194)           (2,011)

Provisions for liabilities and charges                                   (6)              (69)              (13)

Net assets                                                             3,992             3,875             3,978

Capital and reserves
Called up share capital                                                1,090             1,090             1,090
Share premium account                                                    254               254               254
Revaluation reserve                                                      315               316               316
Merger reserve                                                           230               230               230
Profit and loss account                                                2,103             1,985             2,088

Equity shareholders' funds                                             3,992             3,875             3,978






CONSOLIDATED CASH FLOW STATEMENT
£000's                                                       6 months to        6 months to           Year to
                                                            2 April 2004      31 March 2003      30 Sept 2003
                                                               Unaudited          Unaudited           Audited

Net cash inflow from operating activities                            716                390               393
Returns on investments and servicing of finance                     (92)              (112)             (206)
Taxation                                                               -                  -                 -
Capital expenditure                                                (109)                263               317
Acquisition costs (being deferred consideration)                       -              (167)             (167)
Equity dividends paid                                               (27)                  -                 -
Net cash inflow before financing                                     488                374               337

Financing                                                          (218)              (265)             (821)

Increase / (decrease) in cash                                        270                109             (484)





RECONCILIATION OF OPERATING PROFIT / (LOSS) TO
NET CASH INFLOW FROM OPERATING ACTIVITIES

Operating profit / (loss)                                            136             (277)              (97)
Depreciation and amortisation                                        267               320               636
Changes in working capital and other non cash items                  313               347             (146)

Net cash inflow from operating activities                            716               390               393




RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT

Increase / (decrease) in cash in the period                           270               109            (484)
Cash outflow from decrease in debt and lease financing                218               265              821
Change in debt resulting from cash flows                              488               374              337

New hire purchase agreements                                            -                 -             (85)
Amortisation of loan costs                                            (5)               (5)             (11)

Movement in net debt in the period                                    483               369              241

Opening net debt                                                  (3,250)           (3,491)          (3,491)

Closing net debt                                                  (2,767)           (3,122)          (3,250)




NOTES

1.   The financial information contained in this interim statement does not
     constitute statutory accounts as defined in section 240 of the Companies 
     Act 1985. The financial information for the full preceding year is based on 
     the statutory accounts for the financial year ended 30 September 2003. 
     Those accounts, upon which the auditors issued an unqualified opinion, have
     been delivered to the Registrar of Companies.

2.   The calculation of earnings per share is based upon the profit after tax of
     £30,000 (2003: loss after tax of £254,000) and the weighted average number 
     of ordinary shares in issue during the period of 10.903m (2003: 10.903m). 
     The weighted average number of ordinary shares diluted for the effect of 
     outstanding share options was 10.958m (2003: 10.903m). Adjusted earnings 
     per share, which is disclosed to reflect the underlying performance of the 
     Company, has been calculated on a profit of £76,000 (2002: loss of 
     £208,000) being the profit / (loss) after tax before the amortisation of 
     goodwill.

3.   The interim financial information has been prepared on the basis of the
     accounting policies set out in the Group's statutory accounts for the year 
     ended 30 September 2003.

4.   All of the tax charge relates to liabilities within the UK.

Note: Copies of this Interim Report are being sent to shareholders. Copies are
also available to the public from the Company's Registered Office, Tudor Works,
Debden Road, Saffron Walden, Essex, CB11 4AN.



END



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