AGM Statement

LPA Group PLC
13 March 2003


LPA GROUP PLC

13 March 2003

CHAIRMAN'S ANNUAL GENERAL MEETING STATEMENT

All resolutions passed
Change of Nominated Advisor ('Nomad')
Improved order entry


At the Annual General Meeting of LPA Group Plc held today all the resolutions
were passed.


Teather & Greenwood Ltd has been appointed Nominated Advisor with immediate
effect. Bridgewell Limited continues to act as Financial Advisor.


The Chairman Michael Rusch commented as follows;



I stated in the Annual Report in January that the start of the year had been
difficult, that a cost reduction programme had been implemented against the
background of an improving load later in the year, and that this should
significantly improve Group performance during the second half. This view
remains unchanged.



The first four months have been difficult but output has improved over the last
few weeks and the load going forward is much stronger. Cash flow remains under
control.



Order entry in the last six months is 39% higher than the same period last year
and 67% higher than the previous six months. The cost reduction programme is all
but complete. The Group workforce has been reduced by 30% compared to the level
eighteen months ago and four manufacturing units have been closed over the same
period. This reduction in costs, coupled with an improving order entry, should
deliver progress during the rest of the financial year. However this may not be
sufficient to overcome the difficult start to the year, which included the
expense of the cost reduction, and return a profit for the year as a whole.



The new structure has been received well, both within and outside the Group. The
unified sales force is enthusiastic about the change and appears to be relishing
the opportunity to offer a wider range of products and solutions to our
customers. The rationalised operations are enjoying a better workload and our
employees at different sites are learning to work together for mutual benefit.



The Group serves challenging markets including rail, transport, aerospace,
defence, telecommunications, industrial and infrastructure. The prospect of war
does not help, but, if the good order entry we have been enjoying recently is
sustained, then the prospects for the Group are better than they have been for
some considerable time.



Enquiries:



Peter Pollock     Chief Executive                     07881 626 123


Ian Dighe         Bridgewell Limited                  020 7003 3100


Mark Williams     Teather & Greenwood Limited         020 7426 9000



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