TIDMLPA
RNS Number : 9396N
LPA Group PLC
24 January 2019
LPA GROUP PLC
LPA Group plc ("LPA" or the "Group"), the high reliability LED
lighting and electro-mechanical system manufacturer and
distributor, announces record results for the year ended 30
September 2018 and record orders in the first quarter.
Preliminary results key points:
KEY POINTS
-- Sales up GBP5.50m (24.5%) at GBP27.98m (2017: GBP22.48m)
-- Operating profit before exceptional items up 18.4% at GBP2.24m
(2017: GBP1.90m)
-- Exceptional and non-underlying items (cost) GBP175,000
(2017: (gain) GBP73,000)
-- Profit before tax up 5.7% at GBP2.02m (2017: GBP1.91m)
-- Basic earnings per share amounted to 14.34p (2017: 14.40p)
-- Final dividend increased 9% to 1.80p (2017: 1.65p), total
for the year 2.90p (2017: 2.70p)
-- Gearing reduced to 15.5% (2017: 25.7%)
-- Order entry amounted to GBP20.2m (2017: GBP26.1m)
-- Order book amounted to GBP13.8m (2017: GBP21.6m)
-- Continued investments in automation and productivity throughout
the year
Peter Pollock - Chairman commented:
" The 2018 financial year proved exceptional, delivering a third
successive year of record sales and profits, exceeding
expectations.
As expected, order entry fell back relative to the very high
levels achieved in 2017, reflecting the fluctuating demands of our
markets, but were nevertheless very high in historical terms and
the fifth highest on record.
As previously reported, some major rail projects, including
CrossRail, have been delayed and as a consequence the current year
has started quietly, reflecting the lower current demand, which is
expected to pick up substantially as the year progresses.
Happily, orders entered in the first quarter have been a new
record at over GBP9m, exceeding order entry for the first half of
last year and under pinning progress in the medium term. Contract
orders include Central and Waterloo & City lines lighting
refurbishment with LUL, GBP4.7m including a further support
contract; GBP670k lighting for Doha Metro extension through Kinki
Sharyo and GBP1.4m bespoke electro-mechanical underframe structures
for a major UK rail OEM.
After a slow start the year as a whole should be
satisfactory."
23 January 2019
ENQUIRIES:
LPA Group plc
Peter Pollock, Chairman Tel: 01799 512844
Chris Buckenham, Chief Financial Officer Tel: 01799 512859
Paul Curtis, Chief Operating Officer Tel: 01799 512858
Cairn Financial Advisers (Nominated Tel: 020 7213 0880
Adviser)
James Caithie / Tony Rawlinson
WH Ireland (Broker) Tel: 0117 945 3472
Mike Coe / Chris Savidge
Instinctif Partners (PR Adviser) Tel: 020 7457 2020
Rosie Driscoll / Christine Galloway
/ Mark Garraway
Chairman's Statement
Overview
In his statement at the half year my predecessor Michael Rusch,
now our Group President, commented that the level of sales and
profits last year would be exceptional and maybe under pressure in
the current year, but the funnel of opportunities, which leads to
our pipeline of orders, was very encouraging. As usual, he has
proved to be pretty accurate, although, he could not have foreseen
the unexpected delays to Crossrail and other major projects which
affected the final quarter of last year and will affect the first
half of the current year. These orders have not been lost, merely
delayed, and should contribute later this year and next year,
although the extent of the delays has not yet been defined.
However, the funnel of opportunities has been very productive
yielding over GBP9m of orders in the first quarter, a record,
giving increased confidence for the future.
Sales for the year increased 24.5% to GBP28.0m (2017: GBP22.5m)
and operating profit before exceptional and non-underlying items
was up 18.4% at GBP2.2m (2017: up 26.6% at GBP1.9m). Profit before
tax, after exceptional costs of GBP0.18m (2017: gain of GBP0.07m),
increased 5.7% to GBP2.0m (2017: GBP1.9m). Basic earnings per share
for the year were 14.3p (2017: 14.4p), held back by a less benign
tax rate. Gearing reduced to 15.5% (2017: 25.7%).
Order entry fell back to GBP20.2m from the exceptional level of
GBP26.1m achieved in 2017 and this, together with the exceptional
levels of output, was reflected in the order book at the end of the
year which amounted to GBP13.8m (2017: GBP21.6m). This trend
reversed in the first quarter of the current year when record order
entry of GBP9m was achieved.
Dividends
Given this excellent performance and our confidence in the
future, subject to shareholder approval at the forthcoming annual
general meeting to be held at the offices of Instinctif Partners,
65 Gresham Street, London EC2V 7NQ at 12 noon on Thursday 21(st)
March 2019 - your Board proposes to increase the final dividend by
9.1% to 1.80p (2017: 1.65p), making a total for the year of 2.90p
(2017: 2.70p). The dividend, if approved, will be paid on 29(th)
March 2019 to shareholders registered at the close of business on
8(th) March 2019.
Corporate Governance
The Group has adopted the Quoted Companies Alliance Corporate
Governance Code. This places responsibility for oversight, adoption
and communication of the Group's Corporate Governance Model with
the Chair.
The Board considers that the Group's Annual Report is a Document
of Record and therefore eminently suited to be the repository of
the Group's statements on compliance with the Code. These will be
reviewed at least annually and updated as necessary and are set out
in the Annual Report.
Further the Board considers it helpful to have a statement on
the group's North Star or Guiding Light. This forms part of our
Corporate Governance and is set out in the Annual Report.
Board and Management
Stephen Brett, our Finance Director and Company Secretary of
seventeen years and Per Staehr, one of our Non-Executive Directors
having served ten years on the Board, retired from the board at the
annual general meeting on 21(st) March 2018. I should like to thank
them both for their exemplary service to the Group.
Len Porter assumed the role of Senior Non-Executive director and
Chair of the Audit and Remuneration Committees with effect from
21(st) March 2018.
Chris Buckenham succeeded Stephen in the role of Chief Financial
Officer and Company Secretary with effect from 22(nd) March
2018.
Michael Rusch, our Chairman with more than fifty years' service
to the Group, relinquished the Chair on 30(th) September 2018 and
assumed the position of Group President and Non-Executive Director.
I should like to pay tribute to him for his excellent service to
the Group.
I succeeded Michael as Chairman on 1(st) October 2018,
relinquishing my role of Group Chief Executive.
Paul Curtis, Managing Director of LPA Channel Electric Limited
was appointed Chief Operating Officer of the Group with effect from
1(st) October 2018. It is expected that Paul will be promoted to
Chief Executive Officer at the conclusion of the AGM in March 2020,
when my role will become Non-Executive.
Michael Raynor was appointed General Manager of LPA Channel
Electric with effect from 1st October 2018 and joins the Group
Executive alongside Greg Howell, Managing Director of LPA
Connection Systems and John Hesketh, Managing Director of LPA
Lighting Systems.
We expect to appoint a further Non-executive director in due
course.
Employees
Our people remain our most important asset. During the year we
experienced huge swings in demand from those which temporarily
exceeded capacity to those which required a downward adjustment in
capacity. At the same time, we have been making substantial capital
investments and training to upskill our workforce, to improve
productivity and secure future employment opportunities. As a
consequence, we have had to largely eliminate our core of temporary
employees and make certain permanent roles redundant, releasing
some valued colleagues to the employment market. We wish our
employees, past and present, all the best for the future.
Outlook
Although the current year is challenging as previously reported,
our order book has recovered strongly, our pipeline is encouraging
and our funnel full of opportunities at home and abroad. We have
reviewed our Brexit strategy and find that we have a strong
long-term order book, a strong balance sheet, a skilled workforce
and great experience in importing and exporting, which we believe
will sustain us in a good position. Though we foresee challenges,
we look forward to the future with confidence.
Peter Pollock
Chairman
23 January 2019
Chief Operating Officer's Review
Trading Results
Following the excellent results of 2017, the year to 30(th)
September 2018 has been another record year. This is despite the
many challenges that we face in the market and the unprecedented
political conditions the UK faces at this time. We have previously
advised of delays in rail projects such as CrossRail, which
impacted the end of 2018, and although these are starting to come
back online, there will continue to be an element of disruption
from these felt in the first half of 2019. That said, all areas of
the Group have contributed well to the year, structural changes
have bedded in quickly with minimal disruption, and the Group is
focused on the task in hand.
2018 Summary
-- Order entry GBP20.2m (2017: GBP26.1m)
-- Sales up 24.5% at GBP28.0m (2017: GBP22.5m)
-- Profit, before exceptional and non-underlying items, up 18.4% to GBP2.2m (2017: GBP1.9m)
The exceptional order entry from 2017 culminated in record
output on several projects resulting in excellent sales for the
year. Projects do however attract slightly lower added value and
margins compared to routine orders and, as such, have the effect of
slightly reducing the added value percentage realised throughout
the year to 48.6% (2017: 52.1%).
Markets
Rail, Aviation and niche industrial markets remain strong for
LPA and will continue to be the focus for the coming year. These
markets require excellent products and support and, therefore align
with the LPA mantra of long-life reliability, which is a recurring
feature across all our products.
The UK is experiencing record investment in both mainline and
metro rail, with high volumes of vehicles to be delivered in the
coming years, providing many opportunities to pursue. Worldwide
rail is also enjoying strong investment, and, markets that have
served the Group well in the past all have projects to target in
the coming months and years. Weak Sterling continues to help the
export cause and its impact on import costs is being managed.
Aviation continues to grow worldwide providing opportunities in
both the aircraft and aircraft ground support markets. Projects,
such as A350 and C Series, are in the early days of production
build and the Group is well positioned to benefit as build rates
increase. A programme of refreshing our aircraft ground support
products, to improve performance and economies of manufacture, is
also nearly complete and will launch in 2019 with a view of
increasing this business throughout the 50+ countries we export
to.
Our Industrial markets feature areas which benefit from or
require a high level of reliability such as high bay and tunnel
lighting, station infrastructure and marine applications, to name a
few. These areas, as with any, are subject to market fluctuation
but in general remain strong and are targeted for increased efforts
over the coming years.
With the investments made throughout the Group there is now an
excellent capability in all aspects of electronic and
electro-mechanical engineering, a capability the UK is valuing more
and more. Efforts are now being made to see how these capabilities
can be further leveraged to increase business in both current and
new markets.
Design and development
As previously mentioned, the aircraft ground support range of
connectors, manufactured by LPA Connection Systems, is concluding a
complete re-fresh, which will see common design elements providing
economies of scale, whilst also giving the customer a world leading
product and service. This design effort will continue, with both
the rail and industrial ranges of connectors, targeted for
investment and improvement, ensuring that we are able to continue
to serve our markets for the coming years.
LPA Lighting Systems also continued product developments and,
during the year, launched its new range of smart lighting, which
will feature strongly in future rail bids and, keeps us at the
forefront of technology in this field. LED remains the product of
choice in most of our customers lighting projects. LPA has a
growing reputation for excellence in LED lighting.
LPA Channel, our engineered components business, is now the
standard for many of the applications providing passenger device
charging on trains and features on many of the new builds to be
delivered over the coming years. Other initiatives in product
development should also come on stream during the second part of
2019 helping to secure the longer term.
Operations
Production improvement initiatives and investments have yielded
excellent results as follows:
-- Efficiencies on production lines;
-- The installation of robotic welding giving increased efficiency
whilst improving repeatability and quality;
-- Adoption of robotics into production gaining efficiencies
in manual repeatable tasks;
-- The implementation of a new 5 axis machining centre improving
both efficiency and capability; and
-- 3D printing to assist rapid prototyping and the easy creation
of jigs and fixtures for manufacturing.
These investments, which have been well received by our customer
base, have resulted in new opportunities and therefore this is an
area we are targeting for growth over the coming period. The Group
is committed to investment in its capability and efficiency and
this will continue for the coming year as we strive for better
service, performance and quality in all areas of the business.
2019 will see the implementation of four new lean lift stores
systems at the Connection Systems site, which will free up much
needed space and, eliminate the need for renting of additional
space to meet increased spikes in production requirements, as seen
in 2018. In addition to this, the Lighting Systems business has
built a further extension on its site to improve storage, which
will again eliminate the need for external storage capacity as
required during 2018.
Following the spike in 2018 and with the consequence of delays
in certain projects, it has been necessary to restructure some
areas of the business. This involved releasing a few of our
permanent team but was mostly accomplished with the release of our
temporary workers. We continue to believe that our staff are our
greatest asset and maintain our commitment to training and
development in all areas of the business.
Outlook
In the 2017 report we stated that 2018 would start strongly and
then settle. Unfortunately, the settled run rate has been impacted
in the first half of 2019 by project delays, including Crossrail.
However the delayed projects should benefit the second half and
lead to a positive year with a recovery overall. The market is
strong and still providing many opportunities for the current and
later years, a case in point being the 1(st) quarter of the 2019
year providing record order entry levels at over GBP9m.
Transportation, whether Aviation or Rail, are markets that continue
to see worldwide investment and, with both Siemens and CAF
committed to new build train facilities in the UK, with potentially
others to follow, coupled with projects like Deep Tube for London
and HS2, LPA is well placed to benefit from the opportunities that
we expect to arise in the coming years.
Paul Curtis
Chief Operating Officer
23 January 2019
Financial Review
Trading Performance
Revenue in the current year rose by GBP5.50m (24.5%) to
GBP27.98m (2017: GBP22.48m) with increased rail project activity
being the main factor. Gross margins fell 2.8% to 25.4% (2017:
28.2%), reflecting the higher volume of lower margin rail projects
and some additional costs borne to alleviate capacity constraints,
including temporary labour. Gross profit of GBP7.12m (2017:
GBP6.34m) resulted. Other operating expenses reduced by 2.4% of
sales to 17.4% (2017: 19.8%), increasing in total by GBP0.43m at
GBP4.87m (2017: GBP4.44m) - key changes being increased sales and
distribution costs of GBP0.35m, 6.9% of sales (2017: 7.0%),
increased administration and overheads of GBP0.08m, 10.5% of sales
(2017: 12.8%), including increased bonus awards of GBP116,000
(2017: GBP98,000), increased pension administration and governance
inclusive of triennial defined benefit and contribution scheme
reviews, at GBP171,000 (2017: GBP102,000) and share option related
credit of GBP17,000 (2017: GBP6,000).
An operating profit before exceptional and non-underlying items
of GBP2.24m (2017: GBP1.90m) was achieved, up GBP0.34m (18.4%).
In the first half of the year sales of GBP13.93m (2017:
GBP10.80m), up 28.9%, produced an operating profit before
exceptional and non-underlying items of GBP1.12m (2017: GBP0.77m),
up 45.4%, on the corresponding period last year. The second half
was comparable with sales of GBP14.05m (2017: GBP11.68m) delivering
an operating profit before exceptional and non-underlying items of
GBP1.12m (2017: GBP1.12m). Sales in the second half were up by
GBP0.12m on the first half (0.9%), profits constant across each of
the last three half years.
Exceptional and Non-Underlying Items
Net exceptional costs in the period totalled GBP175,000 (2017:
net gain GBP73,000), a net cost increase of GBP248,000 over
2017.
The period included GBP175,000 of non-underlying costs (2017:
GBP268,000), key items comprising: (i) reorganisation costs of
GBP96,000 - associated with cost base reductions at the Group's
Electro-Mechanical site (2017: GBP45,000, costs associated with the
relocation of the groups lighting facility); (ii) extra centre
costs arising from Board succession planning including duplicated
finance function costs of GBP74,000 (2017: GBP102,000); (iii)
professional and recruitment fees associated with the Board
succession and establishment of the Group's Employee Benefit Trust
GBP3,000 (2017: GBP60,000); (iv) corporate finance costs GBP2,000
(2017: GBP61,000).
In 2017 the sale of the Group's former lighting factory realised
an exceptional gain of GBP341,000.
Finance Costs and Income
Within finance costs the interest on borrowings increased by
6.7% to GBP80,000 (2017: GBP75,000). The weighted average interest
rate increased from 2.4% to 2.7%, both through increased hire
purchase funding, despite an overall average rate reduction of
0.57% on 2017, and two UK base rate rises of 0.25% in the year,
increasing the term loan average rate by 0.35% overall. Finance
income, which comprises the net interest income on the pension
asset, was GBP35,000 (2017: GBP21,000).
Profit before Tax, Taxation and Earnings Per Share
Profit before tax was GBP2.02m (2017: GBP1.91m) resulting in a
tax charge of GBP0.25m (2017: GBP0.15m). The effective tax rate in
the year was 12.5% (2017: 7.6%), materially below the UK
corporation tax rate of 19.0% (2017: 19.5%), with the reduction
largely the consequence of tax loss utilisation 1.2% (2017: 2.6%),
qualifying R&D expenditure 2.8% (2017: 3.0%). In 2017 no tax
was anticipated on the exceptional property gain attributing to a
further reduction of 3.4%; the effective tax rate on profit before
tax, exceptional and non-underlying items was 11.3% (2017: 7.7%).
The profit for the year was GBP1.77m (2017: GBP1.77m) representing
basic earnings per share of 14.34p (2017: 14.40p).
Balance Sheet
Shareholders' funds rose by GBP1.99m (18.5%) in the year to
GBP12.71m (2017: GBP10.72m) giving a net asset value per ordinary
share of 104.4p (2017: 86.6p). The tangible net asset value per
share (calculated excluding intangibles and pension asset, net of
deferred tax, from the calculation) was 78.3p (2017: 68.5p). Net
debt reduced GBP0.78m to GBP1.97m (2017: GBP2.75m) with gearing
(net debt as a % of total equity) falling to 15.5% (2017:
25.7%).
Shareholders' funds include Investment in Own Shares at GBP0.02m
par value and GBP0.19m share premium (2017: nil), representing
ordinary shares held in the Company by the LPA Group Plc Employee
Benefit Trust.
Intangible assets, which comprise goodwill and capitalised
development costs, were GBP1.20m (2017: GBP1.19m). Goodwill relates
to the Group's investment in Excil Electronics and was unchanged at
GBP1.15m. Capitalised development costs, associated with the
development of LED lighting products, were GBP0.05m (2017:
GBP0.04m).
Property, plant and equipment at 30 September was GBP7.22m
(2017: GBP6.85m), of which property made up GBP4.34m (2017:
GBP4.32m) and plant and equipment GBP2.87m (2017: GBP2.54m).
Additions in the year were GBP1.02m (2017: GBP1.97m), 2017
including the remaining cost of the new lighting facility at
GBP0.93m. Disposals at net book value amounted to GBPnil (2017:
GBP0.20m). The depreciation charge increased 20.2% at GBP0.65m
(2017: GBP0.54m).
The IAS19 actuarial surplus recognised at 30 September 2018 on
the Group's closed defined benefit pension arrangement was GBP2.41m
(2017: GBP1.31m). Changes over the course of the year comprised an
income statement credit of GBP0.04m (2017: GBP0.02m), employer
contributions received of GBP0.10m (2017: GBP0.10m) plus an
actuarial gain of GBP0.96m (2017: GBP0.35m) recognised in the
statement of comprehensive income. The actuarial gain resulted from
changes to demographic assumptions in line with market indices
(primarily caused through a slight reduction in overall life
expectancy) and changes in financial assumptions of GBP0.41m
(primarily reflecting the higher discount rate applicable at
September 2017, 2.8% as opposed to 2.6%) plus an experience gain on
liabilities of GBP0.25m plus a return on plan assets of
GBP0.06m.
Net trading assets (defined as inventories plus trade and other
receivables, less trade and other payables and current tax) were
1.4% lower at GBP4.29m (2017: GBP4.35m).
Cash Flow
Net cash from operating activities was GBP2.45m (2017: GBP1.49m)
made up of a trading cash inflow of GBP2.72m (2017: GBP2.23m) less
an increase in working capital of GBP0.14m (2017: GBP0.53m), tax
payments of GBP0.03m (2017: GBP0.11m) and pension contributions of
GBP0.10m (2017: GBP0.10m).
Capital expenditure outflows reduced to GBP0.5m (2017: GBP1.6m),
including GBP0.09m spent on the new lighting facility (2017:
GBP0.93m). The year contained asset disposal proceeds of GBP0.01m
(2017: GBP0.53m relating to the sale of the Group's old lighting
facility). Capitalised development expenditure was GBP0.03m (2017:
GBP0.03m).
Loan repayments of GBP0.20m were made (2017: GBP0.70m which
included repayment of a development loan to assist bridge the sale
and purchase of the new lighting premises). Finance lease
repayments were GBP0.11m (2017: GBP0.08m). Interest payments on
borrowings amounted to GBP0.02m (2017: GBP0.02m). Dividend payments
increased 7.6% in the year to GBP0.34m (2017: GBP0.32m).
During the year, GBP0.25m was loaned to the Group's Employee
Benefit Trust to facilitate the acquisition of LPA Group plc shares
(2017: nil). The transactions associated with the Employee Benefit
Trust are consolidated within these accounts. No monies were
received from the exercise of share options, with no option
exercises during the year (2017: GBP0.17m was received).
Overall there was a net increase in the cash position of
GBP1.05m (2017: decrease of GBP0.11m).
Net Debt
An analysis of the change in net debt is shown below:
Bank Loans Finance Lease Cash and Net Debt
Obligations Cash Equivalents
GBP000 GBP000 GBP000 GBP000
At 1 October 2017 2,311 345 97 2,753
New Finance Lease Obligations - 521 - 521
Interest & Arrangement
Fee 55 - - 55
Repayment of Borrowings (196) (109) 304 -
Cash Generated - - (1,358) (1,358)
At 30 September 2018 2,170 757 (956) 1,971
=========== ============== ================== =========
The Group's main bank finance is a GBP2.475m bank loan drawn
down in 2016 and repayable over 5 years. As at September 2018 the
amount outstanding was GBP2.17m (2017: GBP2.31m); the loan is to be
repaid through 14 quarterly instalments, GBP0.05m from October
2018, with the residual balance repayable in April 2021; interest
is payable at base rate plus 1.95%.
In the year GBP0.52m of plant and equipment additions were
financed through new finance leases.
Interest on the GBP1.50m overdraft facility is payable at base
rate plus 1.95% and headroom within the facility at 30 September
was GBP1.50m (2017: GBP1.24m).
Treasury
The Group's treasury policy has not changed in the year: further
details on the Group's borrowings, financial instruments, and its
approach to financial risk management is set out in the Annual
Report.
Chris Buckenham
Chief Financial Officer
23 January 2019
Consolidated Income Statement
For the year ended 30 September 2018
2018 2017
Note GBP000 GBP000
Revenue 27,979 22,482
Cost of Sales (20,862) (16,145)
Gross Profit 7,117 6,337
Distribution Costs (1,931) (1,580)
Administrative Expenses - before exceptional
and non-underlying items (2,942) (2,862)
Operating Profit before Exceptional and
Non-Underlying Items 2,244 1,895
Exceptional and non-underlying items (175) 73
Operating Profit 2,069 1,968
Finance Costs (80) (75)
Finance Income 35 21
Profit Before Tax 2,024 1,914
Taxation (253) (146)
Profit for the Year 1,771 1,768
========= =========
Attributable to:
- Equity Holders of the Parent 1,771 1,768
Earnings per Share 1
Basic 14.34p 14.40p
Diluted 13.45p 13.42p
========= =========
All activities are continuing.
Consolidated Statement of Comprehensive Income
For the year ended 30 September 2018
2018 2017
GBP000 GBP000
Profit for the Year 1,771 1,768
------- -------
Other Comprehensive Income / (Expense)
Items that will not be reclassified
to profit or loss
Actuarial gain / (loss) on pension scheme 962 349
Deferred tax on actuarial gains and
losses (178) (77)
Other Comprehensive Income Net of Tax 784 272
------- -------
Total Comprehensive Income for the Year 2,555 2,040
======= =======
Attributable to:
- Equity Holders of the Parent 2,555 2,040
======= =======
Consolidated Balance Sheet
At 30 September 2018
2018 2017
GBP000 GBP000
Non-Current Assets
Intangible Assets 1,200 1,185
Property, Plant and Equipment 7,216 6,851
Retirement Benefits 2,409 1,311
10,825 9,347
-------- --------
Current Assets
Inventories 3,881 4,417
Trade and Other Receivables 5,540 5,054
Cash and Cash Equivalents 956 119
-------- --------
10,377 9,590
-------- --------
Total Assets 21,202 18,937
-------- --------
Current Liabilities
Bank Overdraft - (216)
Bank Loans and Other Borrowings (322) (227)
Current Tax Payable (266) (64)
Trade and Other Payables (4,868) (4,969)
-------- --------
(5,456) (5,476)
-------- --------
Non-Current Liabilities
Bank Loans and Other Borrowings (2,605) (2,429)
Deferred Tax Liabilities (430) (221)
Other Payables - (90)
-------- --------
(3,035) (2,740)
-------- --------
Total Liabilities (8,491) (8,216)
-------- --------
Net Assets 12,711 10,721
======== ========
Equity
Share Capital 1,238 1,238
Investment in Own Shares (214) -
Share Premium Account 628 628
Un-Issued Shares Reserve 122 134
Merger Reserve 230 230
Retained Earnings 10,707 8,491
-------- --------
Equity Attributable to Shareholders
of The Parent 12,711 10,721
======== ========
Consolidated Cash Flow Statement
For the year ended 30 September 2018
2018 2017
GBP000 GBP000
Profit Before Tax 2,024 1,914
Finance Costs 80 75
Finance Income (35) (21)
Operating Profit 2,069 1,968
Adjustments for:
Depreciation 652 543
Amortisation of Intangible Assets 12 36
Gain on Sale of Property, Plant and
Equipment (10) (321)
Loan Arrangement Fees - 4
2,723 2,230
Movements in Working Capital and Provisions:
Change in Inventories 536 (1,387)
Change in Trade and Other Receivables (486) (376)
Change in Trade and Other Payables (190) 1,237
Cash Generated from Operations 2,583 1,704
Income Taxes Paid (35) (112)
Retirement Benefits (Pension Contributions) (100) (100)
Net Cash from Operating Activities 2,448 1,492
------- --------
Purchase of Property, Plant and Equipment (496) (1,643)
Proceeds from Sale of Property, Plant
and Equipment 10 525
Capitalised Development Expenditure (27) (27)
Purchase of own shares (214) -
Net Cash Used in Investing Activities (727) (1,145)
------- --------
Drawdown of Bank Loans - 500
Repayment of Bank Loans (196) (702)
Repayment of Obligations Under Finance
Leases (109) (81)
Interest Paid (24) (23)
Proceeds from Issue of Share Capital - 166
Dividends Paid (339) (315)
Net Cash (Used In) Financing Activities (668) (455)
------- --------
Net (Decrease) / Increase in Cash
and Cash Equivalents 1,053 (108)
Cash and Cash Equivalents at Start
of the Year (97) 11
------- --------
Cash And Cash Equivalents At End Of
The Year 956 (97)
======= ========
Reconciliation of Cash and Cash Equivalents
Cash and Cash Equivalents in Current
Assets 956 119
Bank Overdraft in Current Liabilities - (216)
------- --------
Cash and Cash Equivalents at End of
the Year 956 (97)
======= ========
Notes
1 - EARNINGS PER SHARE
The calculation of earnings per share is based upon the profit
for the year of GBP1.771m (2017: GBP1.768m) and the weighted
average number of ordinary shares in issue during the year, less
investment in own shares, of 12.350m (2017: 12.276m). The weighted
average number of ordinary shares diluted for the effect of
outstanding share options, was 13.163m (2017: 13.179m).
2018 2017
Earnings Weighted Earnings Earnings Weighted Earnings
Average Per Average Per
Number Share Number Share
of Shares of Shares
========= =========== ========= ========= =========== =========
GBP000 Million Pence GBP000 Million Pence
========= =========== ========= ========= =========== =========
Basic Earnings Per
Share 1,771 12.350 14.34 1,768 12.276 14.40
Effect of Share Options - 0.813 (0.89) - 0.903 (0.98)
Diluted Earnings
Per Share 1,771 13.163 13.45 1,768 13.179 13.42
========= =========== ========= ========= =========== =========
2 - INFORMATION
The preceding information does not constitute the Company's
statutory accounts for the years ended 30 September 2018 or 30
September 2017 but is derived from those accounts. The 2018
accounts are expected to be posted to shareholders on 18(th)
February 2019 and will be available from the Company Secretary, LPA
Group Plc, Light & Power House, Shire Hill, Saffron Walden,
CB11 3AQ and on LPA's website (www.lpa- group.com), shortly
thereafter. Statutory accounts for 2017 have been delivered to the
Registrar of Companies, and those for 2018 will be delivered
following the annual general meeting. The auditors have reported on
these accounts and their reports were unqualified and did not
contain statements under the Companies Act.
The Chairman's Statement, the Chief Operating Officer's Review,
and the Financial Review included in this preliminary announcement
form part of the Strategic Report included in the 2018 accounts.
The Strategic Report and other content of this preliminary
announcement have been prepared solely for the shareholders of the
Company as a body. To the extent permitted by law the Company, its
directors, officers and employees disclaim liability to any other
persons in respect of the information contained in this preliminary
announcement. Sections may include statements containing risks and
uncertainties facing the Group, and other forward-looking
statements, which by their nature involve uncertainty since future
events and circumstances can cause results and developments to
differ materially from those anticipated. The Company undertakes no
obligation to update any forward-looking statements.
3 - ANNUAL GENERAL MEETING
The annual general meeting of the Company is to be held at 12
noon on Thursday 21(st) March 2019 at the offices of Instinctif
Partners, 65 Gresham Street, London EC2V 7NQ.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR BCGDBLUDBGCX
(END) Dow Jones Newswires
January 24, 2019 02:00 ET (07:00 GMT)
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