LONDON (Alliance News) - LED lighting and electronic systems firm LPA Group PLC Thursday said pretax profit increased in its most-recent full year, despite UK sales dragging revenue down 3.9%
The firm posted pretax profit of GBP1.8 million for the period ended September 30, 2013, up from GBP877,000 a year earlier, which was boosted by a surplus on the sale of its Tudor Works site in Saffron Walden of GBP2.1 million, reorganisation costs of GBP809,000 and goodwill impairment of GBP85,000.
Revenue, however, declined to GBP17.6 million from GBP18.4 million in 2012, attributed to a fall in UK sales, and in particular rail and non-rail lighting sales.
"Our LED lighting and electro-mechanical activities benefited from a strong export performance and, but for the hiatus caused by the delayed rail re-franchising process, which adversely impacted UK sales, expectations for the year would have been substantially exceeded," Chief Executive Peter Pollock, said in a statement.
In December 2013, GBP2.5 million of orders were booked, the highest monthly figure since June 2011, but this could not stop the overall order book for the year dipping to GBP5.5 million compared with GBP10.4 million in 2012.
However, LPA said the full year figure did not include a number of contracts the firm has won, but for which values are as yet undefined. It also excludes the Intercity Express Programme an initiative of the Department for Transport to procure new trains to replace the InterCity 125 fleet on the East Coast Main Line and Great Western Main Line.
"The current financial year has started quietly, but the order book is firming up strongly, supporting an increasingly buoyant second half and progress in the year as a whole," Pollock said.
"We still have a factory refurbishment, a business relocation and factory extension to complete, so 2014 is going to be another very busy year, which we look forward to with confidence," he added.
Overall there was a net increase in the cash position of GBP1.2 million compared with a decrease of GBP209,000 a year earlier.
The company increased the final dividend 25% to 0.75 pence from 0.60 pence a year earlier.
The stock was trading at 83.00 pence Thursday morning, up 6.50 pence or 8.5%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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Lpa (LPA)