Covid-19 Trading Update

RNS Number : 3145I

LPA Group PLC

01 April 2020

 

LPA GROUP PLC

("LPA" or the "Group")

Covid-19 Trading Update

LPA Group Plc, t he high reliability LED lighting and electro-mechanical system manufacturer, reports an update on, and its response to, the impact of Covid-19.

A number of UK and export customers have temporarily suspended operations. In response LPA is reducing current production capacity to match demand, reduce costs, conserve cash and utilise government initiatives to support the Group.

All three units will remain open. Flexible working has been introduced to accommodate childcare, and where practical staff are working from home.  Staff segregation and self-isolation precautions have also been introduced.  A significant proportion of the staff have been furloughed as we move through this period.  At each site, staff and capabilities will be maintained to respond to, and deliver on, customer requirements.

Output, which had been expected to accelerate through March to the end of the year, will now be scaled back. However, orders received have comfortably exceeded sales during the first half, so the order book has continued to grow and remains at record levels which provides optimism for the medium term.

Paul Curtis, CEO of LPA Group commented:

"These exceptional circumstances are challenging for all businesses. We will continue to adapt and will look to work with all stakeholders to ensure rail and other key transportation networks remain operable. The impact on the current year remains subjective as timelines are unknown, but the Group remains robust and we will continue to battle through and emerge fit and well as we hope all of our employees can also."

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			07881 626123
Paul Curtis		CEO			01799 512858
Chris Buckenham		CFO			01799 512859
Cairn Financial Advisers		(Nominated Adviser)			020 7213 0880
James Caithie / Tony Rawlinson / Ludovico Lazzaretti
finnCap		(Broker)			020 7220 0500
Ed Frisby / Teddy Whiley (Corporate Finance) Tim Redfern / Tim Harper (ECM & Sales)

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

 

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