REG - LPA Group PLC - AGM Statement

LPAAnnouncement

27/03/2024 07:00

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RNS Number : 4151I  LPA Group PLC  27 March 2024

27 March 2024

LPA Group plc

("LPA" or the "Group")

AGM 2024 - Chairman's Statement

 

At the AGM of the Group to be held at 12.00 noon later today, Robert B
Horvath, Chairman, will make the following statement:

"The first quarter's trading has been as anticipated. Sales levels were
largely on target, good order books remain and we are seeing an increased
level of activity particularly into FY25 (financial year to 30 Sept 2025). The
second quarter of FY24 will be affected by late cable shipments which are now
coming around the Cape but this will be made up in our third quarter.

As we announced on 20 March 2024, both LPA Connection Systems and LPA Lighting
Systems have been adversely affected by a change in the call off schedules for
three key Rail contracts, including the Piccadilly line underground trains
scheduled for deliveries to commence to end customer in July 2025. We are
working hard to analyse the impact on the business over the next 15 months and
to improve our commercial position but it is clear that the return to
profitability will be in our FY25 as some of the growth and profit we were
planning for FY24 will have been deferred a further year. We will update the
market as soon as we have clarity.

In the meantime, operational gearing with increased production volumes,
together with ongoing management actions to reshape sales mix towards higher
margin product lines, is improving EBITDA and cash flow from operating
activities, compared to FY23. Our cash position is good, our Bank facilities
have been renewed and we will pay out the deferred elements of our two recent
acquisitions from cash flow. Our aviation business is growing well and while
we will continue to be subject to call off schedules on our large rail
projects the management team are determined to rebalance our business both
organically and through further acquisitions. As a Board, as previously
announced, we have recommended a restoration of dividend payments including
the payment of a final dividend following the AGM later today."

 

For further information, please contact:

 LPA Group plc                                                       Tel: +44 (0) 1799 512800

 Robert B Horvath, Chairman                                          www.lpa-group.com

 Paul Curtis, Chief Executive Officer

 Stuart Stanyard, Chief Financial Officer
 Cavendish Capital Markets Limited (Nominated Adviser & Broker)      Tel: +44 (0) 20 7220 0500

 Corporate Finance

 Ed Frisby / Abigail Kelly

 Corporate Broking

 Tim Redfern
 Hudson Sandler (Financial PR)                                       Tel: +44 (0) 20 7796 4133

 Dan de Belder

 Nick Moore

 Francesca Rosser

 

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 (http://www.lpa-group.com)

 

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.

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