20 March
2024
LPA GROUP
PLC
("LPA",
the "Company" or the "Group")
Trading
Update
LPA Group plc, the innovation-led
engineering specialist in electronic and electro-mechanical
components and systems, provides a trading update for the
years ending 30 September 2024 and 30 September 2025. The Company
has received revised schedules for delivery to customer for three
of its rail contracts currently in production. The rail products
are for UK and EU end customers. The revised delivery schedules
have resulted in changes to management expectations as follows.
For the current financial year ending 30 September
2024, full year Group revenues are expected to reduce by c.£1.5m to
c.£24.7m. This would result in full year adjusted PBT, and reported
PBT, reducing to breakeven. For the financial year ending 30
September 2025, revenues and earnings are also expected to be
impacted, and revised FY25 guidance will be provided in due
course.
Despite this revised schedule, which is out of the
Group's control, we remain focused on delivering against our
long-term growth strategy. As the picture develops further we will
review and update accordingly.
Paul Curtis, CEO of
LPA Group, commented:
"This change to
schedules on contracted orders further reiterates the need to
rebalance the business to a more even split between standard
products vs bespoke projects, and the growing of our other
marketplaces outside of rail. We are pleased to report that our
aviation sales are trading strongly and that the recent acquisition
of RedBox International is proving positive and on schedule to be
fully integrated into our Saffron Walden site over the coming
months. We are fully committed to delivering a more robust business
and will work through these challenges."
|
Enquires:
|
|
|
|
|
|
|
|
|
|
LPA Group
plc
|
+44 (0) 1799 512 800
|
|
|
|
Robert B Horvath, Chairman
|
|
|
|
|
Paul Curtis, Chief Executive Officer
Stuart Stanyard, Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cavendish
Capital Markets Ltd (NOMAD and Broker)
|
+44 (0) 20 7220 0500
|
|
|
|
Ed Frisby / Abigail Kelly (Corporate
Finance)
Tim Redfern (ECM)
|
|
|
|
|
|
|
|
|
|
Hudson Sandler
(Financial PR)
Dan de Belder
Nick Moore
Francesca Rosser
|
+44 (0) 20 7796 4133
|
lpagroup@hudsonsandler.com
|
|
|
|
|
|
|
|
|
|
|
| |
About LPA
LPA Group plc (AIM: LPA) is an innovation-led
engineering specialist in electronic and electro-mechanical
components and systems.
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 identified 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 reflect 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 retained EU law version of the Market Abuse
Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018. The
information is disclosed in accordance with the Company's
obligations under Article 17 of the UK MAR. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.