LONDON (Alliance News) - LPA Group PLC Thursday reported higher profits and raised its dividend for the first-half of the year, as lower finance costs offset a decline in revenues.
The LED lighting and electro-mechanical system manufacturer and distributor posted a pretax profit of GBP186,000 for the six months to March 31, up from GBP176,000 the prior year, as lower finance costs offset a 7.9% fall in revenues.
Revenues in the year were GBP8.0 million, down from GBP8.7 million a year earlier.
"We have made significant progress in the development of the business so far this year and expect this trend to continue in the second half and accelerate during 2015 and thereafter," Chairman Michael Rusch said in a statement.
Signalling its confidence, the company declared a 17% increase in its interim dividend to 0.7 pence.
"Working capital remains well within our normal trading range and net debt, despite significant capital expenditure on the new Shire Hill facility," said Rusch.
LPA said order entry in the first-half increased almost 28% to GBP9.36 million, and since the start of the financial year the order book has increased by nearly 22% to GBP7.86 million, up from GBP6.47 million at the end of September last year.
"Since the end of the half year routine orders have started to pick up and the group has recorded a number of significant contract awards," the company said.
LPA shares were trading 5.7% higher at 112.00 pence Thursday early afternoon.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Lpa (LPA)