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LONDON (Alliance News) - LPA Group PLC Thursday said its pretax profit fell in 2014 after revenue fell and costs rose, but the company said despite the challenges it has maintained its dividend because of its "confidence in the future".
The LED lighting and electro-mechanical system manufacturer and distributor reported a pretax profit to GBP19,000 in the six months ended April 4, falling from a GBP186,000 profit a year earlier as revenue experienced a slight fall to GBP7.9 million from GBP8.0 million.
Profit fell on the back of that lower revenue, and on higher finance costs combined with lower finance income and a one-off reorganisation cost. Diluted earnings per share dropped to 0.13 pence from 1.32 pence.
However, it kept its interim dividend flat at 0.70 pence per share, and said that is an "indication of our confidence in the future".
"In my remarks to the annual general meeting on March 26, I confirmed earlier reports that the year had started very quietly, particularly in our lighting activity, and this is reflected in the results for the first half. Difficulties have also been experienced in integrating our electro-mechanical activities onto one site," said Chairman Michael Rusch.
Order entry in the first half increased 12.3% to GBP10.5 million from GBP9.4 million and the order book at the end of the period was GBP10.8 million, 31.7% higher than the GBP8.2 million at the end of September.
"We expect to make modest progress during the remainder of the year, which progress should rapidly accelerate as the major projects mature through 2016 to 2019. The group is well positioned to win further orders for rail vehicle equipment on established platforms in both the UK and export markets," said Rusch.
LPA shares were down 4.7% to 75.80 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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