(Sharecast News) - LED lightning systems manufacturer LPA Group warned on Wednesday that output would be scaled back as a result of the Covid-19 outbreak.
LPA said a number of UK and export customers had temporarily suspended operations, leading the group to reduce current production capacity in order to match demand, lower costs, conserve cash and utilise government initiatives for support.
The AIM-listed group said all three units would remain open but stated that flexible working had been introduced to accommodate childcare, and where practical staff were working from home. A "significant proportion" of LPA's staff were also furloughed as we move through this period.
However, despite the interruption and scale back, LPA highlighted that orders received had "comfortably exceeded" sales during the first half and stated that its order book had continued to grow and remained at record levels.
Chief executive Paul Curtis said: "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."
As of 1000 BST, LPA shares were up 2.74% at 75p.
Lpa (LPA)5 Apr 2024 13:52