Trading Update

RNS Number : 5505H

LPA Group PLC

25 November 2022

 

LPA GROUP PLC

("LPA", the "Company" or the "Group")

Year End Trading Update

LPA Group plc, the high reliability LED lighting, electronic and electro-mechanical system designer and manufacturer, is pleased to provide a trading update for the year ended 30 September 2022.

In the interim results we outlined that H1 was loss making and that H2 would show a strong second half.  We are pleased to report that H2 was indeed as predicted, with good progress being made, resulting in an improved trading performance compared to the second half of the prior year. The Group will make a small trading loss for the year, however, with the exceptional gain achieved through the disposal of unused land, the Group will report an overall profit before tax.

We are continuing to transition the business as we broaden our product offering, our worldwide coverage, and the market sectors we serve. We still have a heavy dependency on projects but the foundations are being laid for more repeat routine product sales. In support of this, several key appointments have been made across the Group, notably in sales and engineering. We are delighted to have appointed two new MDs to lead our electro-mechanical and distribution businesses.

Pressure from our supply chain remains as inflation and other macro-economic factors dominate industry. Increased prices and long lead-times are impacting many of the products we supply, however, the impact on the business of these dynamics is being managed.

Our orderbook remains high at £28m. Managing our working capital remains a key focus and the cash from our land sale supports a stronger balance sheet.

Our strategy and direction is clear and, although we anticipate continued pressure from much of the above, we are making good progress towards re-balancing the business.

Enquires:	www.lpa-group.com		Tel:
LPA Group plc
Robert B Horvath	Chairman		01799 512844
Paul Curtis	CEO		01799 512858
finnCap	NOMAD and Broker		020 7220 0500
Ed Frisby / Abigail Kelly (Corporate Finance) Tim Redfern / Charlotte Sutcliffe (ECM)

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About LPA

LPA Group plc (AIM: LPA) is a market leading designer, manufacturer and supplier of high reliability LED lighting, electronic and electro-mechanical systems, and a distributor of engineered components.

Focused on transport (rail and aviation), defence, infrastructure and industrial markets and supplying into hostile and challenging environments, LPA is known for engineering solutions to improve product reliability, reducing maintenance and life cycle costs.

The Group has three sites across the UK, selling to customers in the UK and overseas. Two of these are design and manufacturing sites: LPA Connection Systems - electro-mechanical systems for rail, aviation and industrial, and LPA Lighting Systems - LED lighting and electronic systems for rail and infrastructure. The third site is LPA Channel Electric - a value added distributer of engineered components for rail, aerospace and defence.

With over 160 years of UK design and manufacture, and with origins in the first ever light installed in 'Electric Avenue', Brixton; innovation is core to LPA and to the products and services supplied to our customers worldwide.

For more information visit www.lpa-group.com

 

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