TIDMLPA
RNS Number : 2281U
LPA Group PLC
27 March 2023
LPA GROUP PLC
("LPA", the "Company" or the "Group")
Product Line Acquisition
LPA Group plc, the high reliability LED lighting, electronic and
electro-mechanical system designer and manufacturer, is pleased to
announce the conditional purchase of a product line from Amphenol
Limited ("Amphenol") (the "Acquisition"). The product line is
Amphenol's UK historic range of railway inter-carriage electrical
connectors (inter-car jumpers), complementing LPA Connection
Systems' existing product range.
The Acquisition, effective 24 March 2023, replaces a ten year
licensing agreement between LPA and Amphenol, signed in May 2021,
whereby LPA undertook the manufacture and supply of Amphenol
connectors to the UK rail aftermarket customer base, and the
profits from the product line were shared on a 50:50 basis between
the two parties.
The Acquisition enables LPA to continue to manufacture and
supply the railway inter-carriage electrical connectors direct to
the customer, and now retaining all associated profits.
Paul Curtis, CEO, commented: "This is an excellent agreement for
all parties, assisting both in their strategies of development and
growth for the coming years. The aftercare market is a key focus
for LPA and these products provide access to nearly 3,000 existing
vehicles, to which we can offer our excellent levels of quality and
support over the coming decade. This product line will support the
Group's delivery of FY23 results in line with existing Board
expectations."
The Acquisition, now agreed and signed, is conditional on formal
approval from our customer. The terms of the Acquisition have been
discussed with the customer, no problems are envisaged, and formal
approval is expected to be obtained within the coming weeks.
The revenue for this product line for the year ended 30
September 2022 was GBP388,000, with a total PBT of GBP115,000 split
between the two parties. LPA is acquiring all product line
intellectual property and tooling. Consideration paid for the
Acquisition is GBP500,000 satisfied in cash from existing cash
resources. As at 28 February 2023, LPA had cash of approximately
GBP1.6m (unaudited) and bank debt of GBP2.1m (unaudited).
Enquires: www.lpa-group.com Tel:
------------------------------------ ------------------- --------------
LPA Group plc 01799 512 800
Robert B Horvath Chairman
Paul Curtis CEO
Stuart Stanyard CFO
finnCap NOMAD and Broker 020 7220 0500
Ed Frisby / Abigail Kelly
(Corporate Finance)
Tim Redfern / Charlotte Sutcliffe
(ECM)
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
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
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END
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