(Alliance News) - LPA Group PLC on Friday posted a swing to profit for the first half of financial 2020 as it said it will not pay an interim dividend in a bid to conserve cash amid Covid-19 related uncertainty.
Shares in the LED lighting system manufacturer were trading 11% higher at 73.00 pence each on Friday afternoon in London, but are down 20% from the start of the year.
For the six months ended March 31, LPA posted a pretax profit of GBP200,000, swung from a pretax loss of GBP200,000 reported for the same period the year prior. Revenue was GBP10.8 million, up 6.9% year-on-year from GBP10.1 million.
The order book increased 29% to GBP24.7 million.
No dividend was declared for the six-month period, versus a 1.10p payout the previous year.
Looking ahead, Chief Executive Paul Curtis said: "Although Covid-19 has caused significant disruption to the first half of the financial year, we are pleased to show a 7% increase in sales, a 29% increase in order book and a return to profitability. The group has significant opportunities to pursue and although customer demand remains fragile in some areas, confidence is slowly returning to the market, and we look forward to increasing momentum over the coming 18 months."
As at the end of March, LPA had cash of GBP221,000.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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