Contract Wins and Trading Update

RNS Number : 1890L

LPA Group PLC

04 September 2019

 

LPA GROUP PLC

("LPA" or the "Group")

£4m Contract Wins and Trading Update

LPA Group plc, the high reliability LED lighting and electro-mechanical system manufacturer, is pleased to announce contract wins totalling £4m for new products including complex under-frame electro-mechanical boxes for railway rolling stock and, a Group first, export contract win for LED-based lighting on trams. Deliveries will commence imminently and will continue for at least eighteen months, with significant potential for further revenue in the longer term.

Further to the announcement in May, and as previously reported in the Interims Statement, the current financial year (Y/e 30 September 2019) remains as challenging as previously reported with continued customer delays to certain contracts, which the Board are of the view will now be shipped subsequent to the year end.  These contracts have not been lost, but the sales will be delayed to later financial periods, negatively affecting the full year results.  

However, the factory load for the new financial year commencing 1 October 2019 will benefit from these delays and the new contracts, so the prospects for the new financial year and the longer term are significantly improved, pointing to a strong recovery.

Peter Pollock, Chairman of LPA Group, commented:

"Order entry and prospects remain very strong, and whilst the continued delays to deliveries, moving them from the current period to next year, is disappointing, coupling this delayed output to the new contract wins will increase the factory load and accelerate recovery in the new financial year and secure the Group's position in the longer term. The cost structure has been adjusted reflecting the new reality and the Board looks forward with increasing confidence."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquires:	www.lpa-group.com		Tel:
LPA Group Plc
Peter Pollock	Chairman		01799 512844
Paul Curtis	COO		01799 512858
Chris Buckenham	CFO		01799 512859
Cairn Financial Advisers	(Nominated Adviser)		020 7213 0880
James Caithie / Tony Rawlinson
finnCap	(Broker)		020 7220 0500
Ed Frisby / Teddy Whiley (Corporate Finance) Tim Redfern / Malar Velaigam (ECM & Sales)
Instinctif Partners	(PR Adviser)		020 7457 2020
Rosie Driscoll / Christine Galloway / Mark Garraway

 

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