LPA Group Swings into 1H Loss, Suspends Dividend

LONDON (Dow Jones)--LPA Group PLC (LPA.LN), a lighting, power and electronics system manufacturer and distributor, reported Monday a swing into pretax loss for the first half of fiscal 2010, but order book rose by 40%, and said it has suspended dividend payment and is reviewing final dividend payment MAIN FACTS: -Revenue for the six months ended April 1 GBP6.9 million (2009: GBP7 million) -Order book up 40% to GBP17.6 million (2009: GBP12.6 million); substantial load for delivery in 2011 and beyond. -Orders entered GBP7.8 million (2009: GBP11.8 million). -Pretax loss GBP307,000 (2009: profit GBP79,000). -Diluted loss per share 2.16 pence (2009: profit 0.54 pence). -LED lighting market buoyant, routine activity balanced, aerospace and defense reduced -Experienced widespread delays in customer project delivery schedules; The actual effect of these delays on the first half was to reduce sales by GBP1.4 million and they are anticipated to reduce sales by GBP2.2 million for the year as a whole. -Significant recovery in sales in the second half is expected, the result for the year as a whole will nevertheless be disappointing. -Order book for delivery in next financial year is now at a record level, which should deliver a very encouraging result in 2011. -U.K. Government spending cuts to affect company's projects including the Intercity Express Program, Thameslink, Crossrail and Piccadilly Line for London Underground together with a number of smaller projects. -Spending review might also delay the electrification of rail routes from London to Bristol and South Wales. -This delays may affect the company positively by creating a requirement for additional U.K. built diesel multiple units to meet the required passenger capacity. -Shares on Friday closed at 30 pence valuing the company at GBP3.4 million. -By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, tapan.panchal@dowjones.com Order free Annual Report for LPA Group plc Visit http://djnweurope.ar.wilink.com/?ticker=GB0007320806 or call +44 (0)208 391 6028 (END) Dow Jones Newswires June 28, 2010 03:00 ET (07:00 GMT)