Last checked at 24 Oct 2023 07:00
24 October 2023
LPA GROUP PLC
("LPA", the "Company" or the "Group")
Year-End Trading Update
Stronger H2 trading
LPA Group plc, the innovation-led engineering specialist in electronic and electro-mechanical components and systems, is pleased to provide a trading update for the year ended 30 September 2023.
Revenues increased to £21.7m, up 11% versus the prior year. Orders increased to £25.7m, up 30% compared to prior year, resulting in a total order book of £31.6m at year end.
As previously reported in the interim results, management anticipated an increase in H2 activity to offset the challenges faced in H1. We delivered strong trading in H2, leading to an underlying position of breakeven for the full year.
The Company also expects there will be a positive exceptional fair value adjustment for the recent product line acquisition undertaken in March, which continues to trade strongly. As a consequence, we expect this to result in a reported Group PBT for the year of approximately £1.1m.
With a strong balance sheet, low gearing and excellent new hires now embedded within the Company, further progress is expected as we move into our new financial year. We therefore confirm the intention of restoring a dividend for the 2023 financial year and beyond.
Paul Curtis, CEO of LPA Group, commented:
"Whilst the last few years have seen the Group face some of the toughest market conditions in its history, we are pleased to now be emerging from this. Although some market challenges still remain, we are confident in our strategy, capabilities and people. This, combined with our strong balance sheet and low gearing, provides us with many opportunities to shape and grow the Group as we move forward. We therefore look forward to the coming years with enthusiasm and optimism."
*All FY23 financials remain subject to audit.
Change of Name of Nominated Adviser and Broker
The Company also announces that its Nominated Adviser and Broker has changed its name to Cavendish Capital Markets Limited following completion of its own corporate merger.
Enquiries: |
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LPA Group plc | +44 (0) 1799 512 800 |
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Robert B Horvath, Chairman |
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Paul Curtis, Chief Executive Officer Stuart Stanyard, Chief Financial Officer |
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Cavendish Capital Markets Ltd (NOMAD and Broker) | +44 (0) 20 7220 0500 |
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Ed Frisby / Abigail Kelly (Corporate Finance) Tim Redfern / Charlotte Sutcliffe (ECM) |
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Hudson Sandler (Financial PR)
Dan de Belder Nick Moore Harry Griffiths | +44 (0) 20 7796 4133 | lpagroup@hudsonsandler.com |
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About LPA
LPA Group plc (AIM: LPA) is a market leading designer, manufacturer and supplier of high reliability LED lighting, electronic and electro-mechanical systems, and a distributor of engineered components.
Focused on transport (rail and aviation), defence, infrastructure and industrial markets and supplying into hostile and challenging environments, LPA is known for engineering solutions to improve product reliability, reducing maintenance and life cycle costs.
The Group has three sites across the UK, selling to customers in the UK and overseas. Two of these are design and manufacturing sites: LPA Connection Systems - electro-mechanical systems for rail, aviation and industrial, and LPA Lighting Systems - LED lighting and electronic systems for rail and infrastructure. The third site is LPA Channel Electric - a value added distributer of engineered components for rail, aerospace and defence.
With over 160 years of UK design and manufacture, and with origins in the first ever light installed in 'Electric Avenue', Brixton; innovation is core to LPA and to the products and services supplied to our customers worldwide.
For more information visit www.lpa-group.com
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identi?ed by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements re?ect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.