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(Sharecast News) - LED lighting and electromechanical systems company LPA Group updated the market on its trading on Thursday, reporting that it had traded profitably during the second half.
The AIM-traded firm said activity in the six month period had slowed "slightly" as some customers temporarily closed sites due to worldwide lockdown restrictions.
While activity had since increased, it said it was still experiencing slower-than-normal revenues in some parts of the group, particularly around the aviation sector.
Despite those challenges, LPA confirmed that it had traded profitably throughout the half-year, delivering "satisfactory" results and progression from the prior year, with improved profit before tax for the six months ended 30 September compared to the first half.
Cash generation was achieved in the second half of the financial year, with net debt at 30 September "broadly unchanged" from 2019.
The company said the new financial year had seen notable activity, with two substantial project awards announced on 15 and 19 October, following a predictable second half slow down on order intake.
Brexit had been assessed, the directors said, and it was not envisaged that any significant or lasting issues to the business would be felt from 1 January.
The company also reintroduced market guidance, with management expectations for the current 2021 financial year being ahead of 2020, underpinning its "cautious optimism", with the board confirming plans to re-introduce its dividend policy for 2021.
"Covid-19 has made the second half of the year challenging and hard work for us all, but despite this we have managed to report profits in each month, and we finish the year with confidence," said chief executive officer Paul Curtis.
"We are extremely proud of our staff and would like to thank them for their dedication throughout this time, and especially to those who agreed to furlough leave or unfortunately have now departed the group."
Curtis said the company was "delighted" with the new contract awards announced in October.
"LPA Connection Systems has made a promising start to the new financial year and LPA Lighting Systems are expected to benefit from a strong order book, and recent contract awards.
"We expect progression in 2021, but remain cautious."
At 1213 GMT, shares in LPA Group were up 2.79% at 92p.
7 Oct 2014 10:49