Trading Update

RNS Number : 4870I

LPA Group PLC

26 March 2015

 



LPA GROUP PLC

("LPA" or the "Group")

Selection for New Project, Completion of Contract Negotiations

AGM Trading Update and Notice of Site Visit

New Project and Completion of Contract Negotiations

LPA is delighted to announce that it has been selected by Bombardier Transportation to supply a package of electro-mechanical equipment for the rail vehicles, based on their 'Aventra' platform, to be supplied by Bombardier to the Crossrail Project. Bombardier will be manufacturing the trains at their works in Derby. The value of the equipment to be supplied by LPA is expected to be in the region of £5m. Deliveries are expected to commence in the summer of 2015 and continue through to 2019.

LPA has already announced that it has been selected by Hitachi to supply a package of work including electro-mechanical equipment and LED based lighting for their Intercity Express Programme (IEP). The terms of the Framework Agreement have now been finalised, which will trigger release of the balance of orders for equipment to be supplied for the programme. Approximately £1.0m of orders have already been received and either satisfied or are in progress. These have allowed the manufacture of the first three train sets in Japan, the first of which was unloaded in Southampton earlier this month. The balance of orders to be placed is expected to be in the region of £8.6m for deliveries continuing through the current year and extending to 2019.   

Peter Pollock, Chief Executive of LPA, commented:

"We are delighted to be working with Bombardier Transportation in Derby once again, continuing a relationship which spans decades and which most recently has included supplying Umbilicals and battery rafts for both the Diesel Multiple Unit platform 'Turbostar', and the trains for London Underground's Victoria Line Upgrade. We look forward to a long and satisfying partnership on Crossrail and hopefully, in the longer term, on Aventra.

"We are also delighted to have been invited by Hitachi to witness the landing of the first of the IEP trains at Southampton docks earlier this month. We are pleased that we are making positive progress in our continuing relationship, which originated with supplies of conventional lighting for Javelin trains which have been in service on HS1 for several years and supplies of LED lighting for monorail systems in service in Asia and the Middle East."   

AGM Trading Update

As reported in the preliminary statement and the Annual Report for last year, this year has started very quietly. The load in the lighting factory has been particularly low in total contrast to the very strong order entry being enjoyed by this activity in the period, but unfortunately for delivery late in the second half of this year and thereafter for several years.

As expected the year will be one of two very different halves, with the first half proving difficult and the second half showing recovery.

Including today's announcement, order entry for the year to date totals about £15m, excluding  the £8.6m of Inter City Express Programme mentioned above and approximately £2m on two civilian aerospace programmes, for which we have been selected, but for which we do not have detailed delivery schedules. In total our current order book approximates to £27m.

The growth in our order book, coupled with the significant investment we have made and will be making in our manufacturing facilities and the rationalisation programme now coming to completion, should deliver an extremely strong business for the foreseeable future.

LPA will today host a visit for analysts and investors to its new facility, Light and Power House, in Saffron Walden, after the Group's AGM, which is being held at Light and Power House at 12 noon today. The visit is intended to give greater operational insight into the business and no new material information will be given. Slides from the presentation that will be given will be made available on the Company's website.

ENQUIRIES:

LPA Group plc
Peter Pollock, Chief Executive	Tel: [phone] or 01799 512844
Steve Brett, Finance Director	Tel: [phone] or 01799 512860
Cairn Financial (Nominated Adviser)	Tel: [phone]
James Caithie / Avi Robinson
Instinctif Partners (PR Adviser)	Tel: [phone]
Mark Garraway / Helen Tarbet

 

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