LPA Group reports narrower full-year operating loss

(Sharecast News) - LPA Group reported a narrower operating loss for the year ended 30 September on Friday, as a sharp recovery in order intake and early signs of profitability had improved confidence in its outlook for the new financial year.

The AIM-traded engineering specialist recorded revenue of £21.5m, down from £23.5m a year earlier, while the operating loss narrowed to £0.6m from £0.6m.

Adjusted EBITDA moved to a loss of £0.05m from a positive £0.8m in the prior year, reflecting the impact of restructuring and acquisition-related integration.

Net debt increased, with gearing rising to 21.5% from 13.1%, although the group said its balance sheet remained strong following refinancing.

Order entry rose sharply to £28.8m from £17.3m, lifting the year-end order book to £32.5m, compared with £25.3m a year earlier.

The company said a significant proportion of the new orders were scheduled for delivery in 2026, improving near-term revenue visibility.

Operationally, the year was marked by significant change, including the appointment of Philo Daniel-Tran as chief executive in January 2025 and the acquisition of Eaton's Powertron business in March.

LPA also eliminated its divisional structure under its 'One LPA' reorganisation, consolidating operations across sites to improve efficiency and accelerate growth.

The group said the changes had already delivered tangible benefits, with the business returning to profitability in the first quarter of the new financial year for the first time in more than four years.

Chairman Robert B Horvath described the period as "a formative year" for the group.

"We secured £28m of new orders, a large part of which will be deliverable in 2026," he said, adding that the company had focused on operational resilience and improving delivery performance.

"For the first time in four years we can see our business plan bearing fruit as we have started 2026 on budget and profitable."

Horvath said the board's strategy to rebalance the business towards products rather than projects was gaining traction, supported by recent acquisitions and a rising contribution from aerospace and defence, which now accounts for 28% of group revenue, up from 13% three years ago.

While acknowledging the increase in gearing following the 2025 losses, he said the group's headroom remained comfortable and that "the near-term pipeline visibility is good, and we are looking forward to 2026 with optimism and enthusiasm."

At 0803 GMT, shares in Transense Technologies were up 2.04% at 50p.

Reporting by Josh White for Sharecast.com.

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