REG - LPA Group PLC - Trading Update & Property Disposal

LPAAnnouncement

26/09/2025 07:00

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RNS Number : 9208A  LPA Group PLC  26 September 2025

26 September 2025

LPA GROUP PLC

("LPA", the "Company" or the "Group")

Trading Update & Property Disposal

LPA Group plc, the innovation-led engineering specialist in electronic and
electro-mechanical components and systems, provides a trading update for the
current financial year ending 30 September 2025, and provides details of a
property disposal. The Company now has reduced revenue and earnings
expectations which can be attributed to lower sales at Martek Power, and to
the customer led delayed delivery of an aerospace contract. These events have
resulted in changes to management expectations as follows.

For the current financial year ending 30 September 2025, full year Group
revenues are expected to reduce by c.£3.0m to c.£21.5m. This would result in
full year adjusted PBT reducing to a loss of c.£1.3m.

2025 Reported PBT of c.£0.5m loss remains in line with previous expectations
due to various exceptional income: negative goodwill on the Martek acquisition
and, profit on sale of property details of which are provided below.

For the financial year ending 30 September 2026, revenues are expected to
reduce slightly by c.£1.5m to c.£27m. However, because of our accelerated
organisational restructuring, earnings expectations for adjusted PBT of £0.6m
are maintained.

As previously communicated, we have had an extremely strong order intake this
financial year to date, of c.£27m, which gives us a solid foundation for our
future growth plans.

Property Disposal

The Company is pleased to announce the sale of freehold premises in Thatcham,
Berkshire, having exchanged on 25 September 2025 and completion expected
during 26 September 2025. The consideration payable at completion is £355,000
and the cash proceeds will be used to reduce net debt. Net book value was
c.£86,000 as at 31 March 2025. Previous LPA operations at these premises have
been relocated to other existing LPA sites, with the addition of a smaller
leased office in the area. The profit on disposal net of sale costs is
expected to be recognised as exceptional income in the current year's results,
as referred to above.

 

Robert B Horvath, Chairman of LPA Group, commented:

"Our strong order intake of £27m for this financial year underpins our
ability to deliver on our future growth plans and further endorses our
strategic decision to accelerate the restructuring of the organisation into
'One LPA'. The restructuring of LPA is near to completion, and I am confident
that we are already seeing the business benefits.

It is widely acknowledged that UK manufacturing output has contracted over the
last three months and is attributed to global issues including US import
tariffs and domestic uncertainty around economic and government policies. It
is fair to assume we are not immune from this as we are an integral part of
the supply chains of large manufacturing organisations. However, we have seen
a more positive output in September."

 

 Enquires:

 LPA Group plc                                                 +44 (0) 1799 512 800
 Robert B Horvath, Chairman
 Philo Daniel-Tran, Chief Executive Officer

 Stuart Stanyard, Chief Financial Officer

 Cavendish Capital Markets Ltd (Nominated Advisor and Broker)  +44 (0) 20 7220 0500
 Corporate Finance

 Ed Frisby / Issac Hooper / Elysia Bough

 Corporate Broking

 Tim Redfern

 

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), aerospace, 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 Thatcham, Berkshire - value-added distribution of engineered
components for rail, aerospace and defence.

With over 150 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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