REG - LPA Group PLC - Trading Update

LPAAnnouncement

20/03/2024 09:45

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RNS Number : 6013H  LPA Group PLC  20 March 2024

 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)                                      +44 (0) 20 7796 4133  lpagroup@hudsonsandler.com

 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)

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.

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