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RNS Number : 3640G LPA Group PLC 01 June 2026
1 June 2026
LPA Group Plc
("LPA", the "Company" or the "Group")
Interim Unaudited Group Results for the six months ended 31 March 2026
LPA Group plc, the innovation-led engineering company that designs and
manufactures electronic and electro-mechanical components and systems,
announces its results for the six months to 31 March 2026.
FINANCIAL HIGHLIGHTS
6 months to 6 months to Year to
31 March 2026 31 March 2025 30 Sept 2025
Unaudited Unaudited Audited
Order Entry £10.6m £17.0m £28.8m
Order Book £29.3m £32.8m £32.5m
Revenue £13.8m £9.5m £21.5m
Adjusted EBITDA* £1.0m £(0.5)m £(0.1)m
Profit / (Loss) Before Tax £0.4m £(0.5)m £(0.6)m
Basic Profit / (Loss) Per Share 2.89p (1.49)p (2.64)p
Net Assets per share 124.0p 116.9p 118.3p
Gearing ** 34.8% 24.1% 21.5%
* Adjusted EBITDA is Operating Profit/(Loss) before Share Based Payments,
Negative Goodwill, Non-recurring items, Depreciation and Amortisation
** Net Debt as a % of Total Equity
Robert Horvath, Chairman, commented:
I am pleased to report that the Company has delivered a strong performance in
the first half of the year.
We are actively collaborating with a number of customers to develop tailored
products, while maintaining a clear focus on fulfilling shorter-term orders to
support immediate delivery requirements. Although we continue to await updates
on several longer-term contracts, overall sales volumes have remained robust
and in line with budget expectations.
Looking ahead, the outlook for the second half of the year is encouraging. We
remain confident in our long-term growth prospects and our ability to generate
sustained value for our shareholders. We therefore expect to deliver full-year
results in line with current market expectations.
Enquiries:
LPA Group plc +44 (0) 1799 512 800
Robert B Horvath, Chairman www.lpa-group.com
Philo Daniel-Tran, Chief Executive Officer
Stuart Stanyard, Chief Financial Officer
Cavendish Capital Markets Limited (Nominated Advisor & Broker) +44 (0) 20 7220 0500
Corporate Finance
Ed Frisby / Elysia Bough / Joe Smith
Corporate Broking
Ella Bedford
About LPA
LPA Group plc (AIM: LPA) is an innovation‑led engineering company that
designs and manufactures 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 four sites across the UK, selling to customers in the UK and
overseas. Three of these are design and manufacturing sites: Saffron Walden,
Essex - electro-mechanical systems for Rail, Aviation and Industrial;
Knapwell, Cambridge - power supplies for the Rail market, Normanton, Yorkshire
- LED lighting and electronic systems for Rail and Infrastructure. The fourth
site is Newbury, Berkshire - value-added distribution 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)
CHAIRMAN'S STATEMENT
Last year I reported that the Group was growing revenue in line with our
strategy and 5-year plan and with a target of achieving organic revenue growth
50% higher in 2028 than in 2024. Over the last six months we have seen
continued strength in our revenue performance, supported by additional
opportunities generated through the efforts of a more focused sales team.
Importantly, I stated that we will supplement our journey with new
opportunities to acquire product lines or businesses, but always with
resilient intellectual property rights embedded within them. This will enable
us to leverage our technical engineering skills to best effect, the
acquisition of Martek is a clear example of this strategy in action.
Rail remains at the heart of our business and will continue to play a critical
role in maintaining a consistent flow of work through the factories. New
projects are keenly fought for in this market segment and the Government's
slowdown to the deep tube projects has also had a wider impact in this sector.
Therefore, our aftercare market and maintenance products are key to delivering
turnover and maintaining strong customer relationships remain the life blood
for generating volume. The work done in the last 6 months by the newly
structured sales teams working as one group has been instrumental in growing
the revenue line; especially around our distribution business.
Enquiry levels for Aerospace and Aviation products remain strong and over the
last six months our teams have generated new opportunities, providing
increased visibility into the scale of the market potential available to us.
The Red Box sales programme continues to show encouraging progress with
certification across the range of product lines more than 80% complete. Plane
Power product sales are building momentum, and we are seeing global demand for
our 'crocodile' cable carriers. In addition, our distribution business plays
an important role in supporting growth in our non-rail markets.
The Board remains committed to its strategy to grow the business and is
actively exploring opportunities to expand through the addition of new
products and businesses. Dr Philo Daniel-Tran, our Chief Executive Officer is
bringing clear vision and focus to this strategy, particularly in aerospace
and defence, to create targets for our growth and importantly adding the
capabilities to support her. The past year has been a period of significant
transformation with an emphasis on enhancing sales and marketing, advancing
engineering capabilities and operational excellence. This transformation has
been successful, positioning the Group for further growth.
In April, we have welcomed Nils von Essen into our boardroom. He is attending
Board meetings at the behest of Mr Peter Gyllenhammer, our largest
shareholder. Mr von Essen is currently employed by Peter Gyllenhammar AB. He
has strong commercial experience in product management and an MSc in technical
management.
Robert B Horvath
Chairman
29 May 2026
CEO Review
LPA Group's improved performance and delivery in the second half of FY25 has
continued into the first half of FY26. We continue to demonstrate the
resilience of our multi-site operations and the strength of the long-term
relationships we have built with our customers. We are building on the core
capabilities across our business, supported by our long serving team and the
addition of new talent. Together, this blend of experience and new
capabilities will further strengthen our ability to drive growth and delivery.
Our diversification strategy focusing on market adjacencies and innovation,
will allow us to confidently navigate market dynamics, even amidst an
uncertain global political landscape. We continue to broaden our portfolio to
achieve a balanced order book, by combining larger contract wins with
shorter-cycle recurring revenue streams. As highlighted in our Annual Report,
Aviation, Aerospace, and Defence remain key strategic priorities. We are
accelerating growth in Aviation through new product launches in the second
half of FY26. In Aerospace and Defence, we are moving beyond value added
distribution by developing organic solutions, strengthening our capabilities
and long-term market position.
Ongoing product rationalisation across both acquired and existing products,
together with innovation for product enhancement, is creating new
opportunities across all our market sectors with both new and existing
customers.
We have initiated an ERP (Enterprise Resource Planning) harmonisation
programme to enhance operations. This initiative will integrate all aspects of
the business from order entry and design through to manufacturing, customer
delivery and sustainment.
Aerospace and Defence has had a solid start to the year with performance in H1
FY26 ahead in absolute terms with a combination of new customer orders,
alongside continued call-offs from existing programmes. LPA is working closely
with emerging eVTOL (electric vertical take-off and landing) and new airline
manufacturers. Securing 'designed in' positions on these prototypes will
support future growth as they achieve certification and transition into
production. FY26 is also expected to see further growth in Defence land
vehicle solutions, and we continue to identify significant opportunities in
both new and refurbishment programmes in this sub-sector.
Aviation products include the Plane Power connector range for Ground Support
Units, the cable carrier systems (crocodiles) and the Red Box power supply
range. Managing key suppliers and completing product redesign remain key
priorities as we work to fully re-establish the portfolio of products for this
market segment during 2026.
We are enhancing the Red Box product range in response to customer demand and
regulatory compliance, with the majority of the newly improved range already
released and the remaining products to be finalised by August 2026.
Rail aftercare projects in the UK have slowed as the industry awaits new
funding decisions and subsequent investment, especially with uncertainty
around GBR (Great British Railways) and the renationalisation of the UK rail
network. While H1 FY26 saw existing project wins finally moving into
production, progress has slowed in H2 FY26 with several projects being
deferred. We are further enhancing our business development capabilities in
global growth markets in Q3 FY26.
Within Industrial and Infrastructure our niche range of specialist electrical
'Niphan' connectors and ATEX lighting has delivered strong demand and growth
in FY26. We will now invest in more dedicated business development capability
in Q4 FY26, refocusing on this sector to support further growth into FY27.
As outlined in our Annual Report, we successfully refinanced our debt
facilities in January 2026 through a three-year revolving credit facility
secured against property and receivables with Arbuthnot Latham.
Revenue has grown by 45% in the first half compared to 1H 2025. This strong
growth, combined with continued delays in receivables from key customers and a
focus on improving supplier settlements, has resulted in an increase in
gearing to 34.5%, up from 21.5% at 30 September 2025. The new facility has
provided approximately £2 million of additional headroom, enabling us to
support accelerated expansion and growth while we focus on generating future
cash profits to reduce debt levels.
As we pursue our objective of significant growth, beyond our organic growth we
are also actively exploring potential acquisition targets that align with our
strategic priorities.
We continue to make significant progress as we invest in resilience and
long-term success. With rising global demand for Aviation, Aerospace and
Defence technologies, alongside expanded opportunities in global rail
refurbishment and new build markets, we are well-positioned to unlock growth
opportunities in the current year and the years ahead.
Philo Daniel-Tran
CEO
29 May 2026
CONSOLIDATED INCOME STATEMENT
6 months to As restated Year to
6 months to
31 Mar 26 31 Mar 25 30 Sept 25
Unaudited Unaudited Audited
£000 £000 £000
Revenue - Continuing Operations 13,764 9,523 21,546
4
Cost of Sales (9,808) (7,581) (16,788)
Gross Profit 3,956 1,942 4,758
Distribution Costs (1,195) (1,067) (2,104)
Administrative Expenses - Exceptional (57) (49) 62
Administrative Expenses - Other 5 (2,343) (1,944) (3,948)
Negative - 640 640
Goodwill
Other Income 5 - -
Operating Profit / (Loss) 366 (478) (592)
Negative - (640) (640)
Goodwill
Non-recurring 57 49 (62)
items
6
Depreciation and Amortisation 615 553 1,244
Adjusted EBITDA 1,038 (516) (50)
Finance Income 151 123 248
Financing Costs (135) (120) (258)
Profit / (Loss) Before Tax 382 (475) (602)
Taxation - 278 253
Profit / (Loss) for the Period 382 (197) (349)
Attributable to:
- Equity Holders of the Parent 382 (197) (349)
Profit / (Loss) per Share
7
- Basic 2.89p (1.49)p (2.64)p
- Diluted 2.70p (1.49)p (2.64)p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months to 6 months to Year to
31 Mar 26 31 Mar 25 30 Sept 25
Unaudited Unaudited Audited
£000 £000 £000
Profit / (Loss) for the Period 382 (197) (349)
Other Comprehensive Income
Items that will not be reclassified to profit or loss:
Actuarial Gain / (Loss) on Pension Scheme 63 (297) 200
(Increase) / Decrease of Restriction of Pension Asset (47) 55 (93)
Other Comprehensive Income / (Loss) 16 (242) 107
Total Comprehensive Income / (Loss) for the Period 398 (439) (242)
CONSOLIDATED BALANCE SHEET
As at As at As at
31 Mar 26 31 Mar 25 30 Sept 25
Unaudited Unaudited Audited
£000 £000 £000
Non-Current Assets
Intangible Assets 3,802 4,213 3,989
Plant Property and Equipment 4,392 5,094 4,597
Right of Use Assets 434 572 573
Deferred Tax Asset 109 123 109
Retirement Benefits 4,200 3,619 4,061
12,937 13,621 13,329
Current Assets
Inventories 6,352 6,288 6,362
Trade and Other Receivables 8,320 5,546 6,474
Derivative Asset 6 80 -
Current Tax Receivable - 34 23
Cash and Cash Equivalents 494 - -
15,172 11,948 12,859
Total Assets 28,109 25,569 26,188
Current Liabilities
Bank Loans - (105) (109)
Bank overdraft - (1,020) (806)
Lease Liabilities (185) (229) (222)
Deferred Consideration - (275) -
Derivative Liability - - (70)
Trade and Other Payables (5,534) (5,701) (6,696)
Current Tax Payable (1) - -
(5,720) (7,330) (7,903)
Non-Current Liabilities
Bank Loans (5,961) (2,300) (2,243)
Lease Liabilities (43) (149) (55)
(6,004) (2,449) (2,298)
Total Liabilities (11,724) (9,779) (10,201)
Net Assets 16,385 15,790 15,987
Equity
Share Capital 1,351 1,351 1,351
Investment in Own Shares (324) (324) (324)
Share Premium Account 959 959 959
Share Based Payment Reserve 62 62 62
Merger Reserve 230 230 230
Retained Earnings 14,107 13,512 13,709
Equity Attributable to Shareholders of the Parent 16,385 15,790 15,987
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Investment in Own Shares Share Premium Account Share Based Payment Reserve Merger Retained Earnings Total
Reserve
2026 - 6 months (Unaudited) £000 £000 £000 £000 £000 £000 £000
At 1 October 2025 1,351 (324) 959 62 230 13,709 15,987
Profit (Loss) for the Period - - - - - 382 382
Other Comprehensive Income (Expense) - - - - - 16 16
Total Comprehensive Income (Expense) - - - - - 398 398
At 31 March 2026 1,351 (324) 959 62 230 14,107 16,385
Share Capital Investment in Own Shares Share Premium Account Share Based Payment Reserve Merger Retained Earnings Total
Reserve
2025 - 6 months (Unaudited) £000 £000 £000 £000 £000 £000 £000
At 1 October 2024 1,351 (324) 959 62 230 13,951 16,229
Profit (Loss) for the Period - - - - - (197) (197)
Other Comprehensive Income (Expense) - - - - - (242) (242)
Total Comprehensive Income (Expense) - - - - - (439) (439)
At 31 March 2025
1,351 (324) 959 62 230 13,512 15,790
Share Capital Investment in Own Shares Share Premium Account Share Based Payment Reserve Merger Retained Earnings Total
Reserve
2025 -Year Audited £000 £000 £000 £000 £000 £000 £000
At 1 October 2024 1,351 (324) 959 62 230 13,951 16,229
Profit (Loss) for the Year - - - - - (349) (349)
Other Comprehensive Income (Expense) - - - - - 107 107
Total Comprehensive Income (Expense) - - - - - (242) (242)
At 30 September 2025 1,351 (324) 959 62 230 13,709 15,987
CONSOLIDATED CASH FLOW STATEMENT
6 months to 6 months to Year to
31 Mar 26 31 Mar 25 30 Sept 25
Unaudited Unaudited Audited
£000 £000 £000
Profit / (Loss) Before Tax 382 (475) (602)
Financing Costs 135 120 258
Finance Income (151) (123) (248)
Operating Profit / (Loss) 366 (478) (592)
Adjustments for:
Amortisation of Intangible Assets 187 235 450
Depreciation of Plant, Property and Equipment 259 243 447
Depreciation of Right of Use Assets 169 75 347
Profit on Sale of Property - - (262)
Loss on Sale of Plant, Property and Equipment - - 25
Negative Goodwill - (640) (640)
Operating Cash Flow Before Movements in 981 (565) (225)
Working Capital
Movements in Working Capital:
Decrease / (Increase) in Inventories 10 (107) (181)
(Increase) / Decrease in Trade and Other Receivables (1,851) 182 (746)
(Decrease) / Increase in Trade and Other Payables (929) (457) 424
Cash Outflow Generated from Operations (1,789) (947) (728)
Income Taxes Received 24 - -
Net Cash Outflow from Operating Activities (1,765) (947) (728)
Investing Activities
Purchase of Business Net of Cash Acquired (275) (351) (351)
Purchase of Property, Plant & Equipment (17) (32) (74)
Sale Proceeds from Sale of Assets - - 375
Expenditure on Intangible Assets - (125) (122)
Expenditure on Capitalised Development Costs - (6) -
Net Cash Outflow from Investing Activities (292) (514) (172)
Financing Activities
Drawdown / (Repayment) of Bank Loan 3,609 (50) (103)
Principal Elements of Lease Liabilities (117) (104) (260)
Interest Paid (135) (120) (258)
Net Cash Inflow / (Outflow) from Financing Activities 3,357 (274) (621)
Net Increase / (Decrease) in Cash and Cash Equivalents 1,300 (1,735) (1,521)
Cash and Cash Equivalents at Start of Period (806) 715 715
Cash and Cash Equivalents at End of Period 494 (1,020) (806)
NET DEBT
An analysis of the change in net debt is shown below:
Bank Loan Lease Liabilities Cash and Cash Equivalents Net Debt
£000 £000 £000 £000
At 1 October 2025 2,352 277 806 3,435
Interest Costs 111 7 23 141
New Lease Obligations - 68 - 68
New Bank Loan 5,898 - (5,791) 107
Repayment of Borrowings / Lease Liabilities (2,400) (124) 2,524 -
Other Cash Generated - - 1,944 1,944
At 31 March 2026 5,961 228 (494) 5,695
Notes to the financial statements
Note 1 BASIS OF PREPARATION
These interim financial statements are for the six months ended 31 March 2026.
They do not include all the information required for full annual financial
statements and should be read in conjunction with the consolidated financial
statements of the Group for the year ended 30 September 2025.
These interim financial statements have been prepared in accordance with the
requirements of UK-adopted International Accounting Standards. These financial
statements have been prepared under the historical cost convention with the
exception of certain items which are measured at fair value.
These interim financial statements have been prepared in accordance with the
accounting policies adopted in the last annual financial statements for the
year to 30 September 2025. The accounting policies have been applied
consistently throughout the Group for the purposes of preparation of these
interim financial statements and are expected to be followed throughout the
year ending 30 September 2026.
Note 2 Summary of Significant Accounting Policies
Use of judgements and estimates
In preparing these interim financial statements management is required to make
judgements on the application of the Group's accounting policies and make
estimates about the future. Actual results may differ from these
assumptions. The significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation uncertainty were
the same as those described in the consolidated financial statements for the
year ended 30 September 2025.
New standards and interpretation adopted by the Group
There has been no impact of new standards and interpretations adopted in the
period.
NOTE 3 GOING CONCERN
The Group's business activities and the factors likely to affect its future
performance together with the Group's treasury policy, its approach to the
management of financial risk, and its exposure to liquidity and credit risks
are outlined fully in the Annual Report & Accounts 2025 which details
trading, new financing and to a lesser extent supply chain shortages and
inflationary pressures.
In assessing going concern the Directors note that the Group: (i) will
continue to trade profitably in the near term; (ii) has in place adequate
working capital facilities for its forecast needs with its recent refinancing
and strong cash management; (iii) has a strong current order book with
significant further opportunities in its market place; and (iv) has proven
adaptable in past periods of adversity over many years. Therefore, the
Directors believe that it is well placed to manage its business risks
successfully.
The directors believe the recent £8.75m refinancing completed on 16(th)
January 2026 will create circa £2m of headroom of facilities for the group to
expand more quickly and to manage growth whilst also mitigating any additional
project delays, while we generate cash profits in the future to repay the debt
Having assessed all aspects of the business and the likely effectiveness of
mitigating actions that the Directors would consider undertaking or have
undertaken, the Directors consider it remains appropriate to continue to
adopt the going concern basis in the preparation of these group interim
financial statements.
NOTE 4 Operating Segments
All the Group's operations and activities are based in, and its assets located
in, the United Kingdom. For management purposes the Group comprises three
product groups (in accordance with IFRS 8) - LPA Connection Systems
(electro-mechanical), LPA Lighting Systems (lighting & electronics)
systems and LPA Channel Electric (value add distribution), which collectively
design, manufacture and market industrial electrical and electronic products.
They operate across three market segments - Rail; Aerospace & Defence,
Industrials and Other. It is on this basis that the Board of Directors assess
Group performance. The revenue split is as follows:
6 months to 6 months to Year to
31 Mar 26 31 Mar 25 30 Sept 25
Unaudited Unaudited Audited
Electro-mechanical 5,156 3,883 8,141
Lighting and electronics 4,816 3,546 8,112
Value add distribution 3,792 2,094 5,293
13,764 9,523 21,546
All revenue originates in the UK. An analysis by market segments and
geographical markets is given below:
6 months to 6 months to Year to
31 Mar 26 31 Mar 25 30 Sept 25
Unaudited Unaudited Audited
Rail 69% 64% 66%
Aviation 12% 19% 17%
Aerospace and Defence 10% 12% 11%
Industrial & Other 9% 5% 6%
100% 100% 100%
United Kingdom 61% 57% 53%
Rest of Europe 26% 33% 35%
Rest of the World 13% 10% 12%
100% 100% 100%
NOTE 5 ADMINISTRATION COSTS - OTHER
Administration costs are higher between half years due to the impact of the
Martek acquisition and the costs of establishing the correct operating team.
NOTE 6 Non-Recurring ITEMS
The non-recurring item of £57,000 (2025:£49,000) relates to cost relating
to group reorganisation / staff changes. The non-recurring item in the year to
30 September 2025 related to the profit on the sale of a property, the
acquisition of the trading assets of Martek Power and group reorganisation /
staff changes costs.
NOTE 7 EaRNINGS / (Loss) PER SHARE
The calculations of earnings/(loss) per share are based upon the
earnings/(loss) after tax attributable to ordinary equity shareholders and the
weighted average number of ordinary shares in issue during the period, less
investment in own shares.
Details are as follows:
6 months to 6 months to Year to
31 Mar 26 31 Mar 25 30 Sept 25
Unaudited Unaudited Audited
Profit / (Loss) for the period - £000 382 (197) (349)
Weighted average number of ordinary shares in issue during the period
(thousand)
13,213 13,203 13,213
Dilutive effect of share options (thousand) 928 - -
Number of shares for diluted earnings per share (thousand) 14,141 13,203 13,213
Basic earnings / (loss) per share 2.89p (1.49)p (2.64)p
Diluted earnings / (loss) per share 2.70p (1.49)p (2.64)p
Basic and diluted earnings per share are based on the weighted average number
of ordinary shares and share options in issue during the period. For the
period ended 31 March 2025 and 30 September 2025, the basic and diluted loss
per share is equal since where a loss is incurred the effect of outstanding
share options and warrants is considered anti-dilutive and is ignored for the
purpose of the loss per share calculation.
NOTE 8 RESTATEMENT OF HY 2025 INCOME STATEMENT
We have reclassified some costs from Cost of Goods sold to Administration
Expenses - Other in the half year 2025, so all three periods shown are all on
a comparable basis.
NOTE 9 INFORMATION
LPA Group Plc is the Group's ultimate parent company. It is incorporated in
England and Wales and domiciled in the UK, Company Number 686429. The address
of LPA Group Plc's registered office, which is also its principal place of
business, is Light & Power House, Shire Hill, Saffron Walden, CB11 3AQ,
UK. LPA Group Plc's shares are quoted on the AIM market of the London Stock
Exchange.
LPA Group Plc's consolidated interim financial statements are presented in
Pounds Sterling (£000), which is also the functional currency of the parent
company. These interim financial statements have been approved for issue by
the Board of Directors on 29 May 2026. The financial information set out in
this interim report does not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006. The Group's statutory financial
statements for the year ended 30 September 2025 have been filed with the
Registrar of Companies. The auditor's report on those financial statements was
unmodified and did not contain statements under Section 498(2) or Section
498(3) of the Companies Act 2006.
Copies of this Interim Report are being sent to shareholders who have
requested to receive a hard copy. Shareholders are encouraged to access copies
which are available on the Company's website (www.lpa-group.com
(http://www.lpa-group.com) ).. A printout of the Interim Report will also be
available by request from the Company's Registrar, or the Company's registered
office, address as above or by email: investors@lpa-group.com
(mailto:investors@lpa-group.com) .
Shareholders are encouraged to visit our website where useful links and
assistance have been provided, including our Registrars, to assist utilisation
of digital channels and receipt of future dividends and our Brokers who
provide equity research.
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