Interim Results

LPA Group PLC
26 June 2002



                                  News Release


Interim Unaudited Group Results for the Six Months ended 31 March 2002




Enquiries:

Peter Pollock             Chief Executive                         07881 626 123
Ian Dighe                 Bridgewell Corporate Finance Limited    020 7003 3100
Russell Cook              Teather & Greenwood Limited             020 7426 9000



Interim Unaudited Group Results for the Six Months ended 31 March 2002


CHAIRMAN'S STATEMENT



The LPA Group achieved a profit before taxation for the six months ended 31
March 2002 of £49,000 compared with a loss of £136,000 in the same period last
year. Sales increased 26.9% to £7.82m (2001: £6.16m). Operating profits
increased 586% to £192,000 (2001: £28,000). Earnings per share, based on profit
after taxation, amounted to 0.46p (2001: loss per share of 0.33p). The interim
dividend has been resumed at 0.25p (2001: Nil), and will be paid on 23 September
2002 to shareholders on the Register at the close of business on 23 August 2002.



Following improved profitability and tight control of the elements of working
capital, Group net indebtedness reduced by £391,000 during the period to
£4,072,000 on 31st March 2002 against £4,618,000 a year earlier. Gearing was
89.5% (2001: 108.3%).



Trading conditions remained difficult during the period and have worsened since.
The new delays in current contracts announced during the last few months have
significantly reduced the load in the second half of the year and this, coupled
with a lower level of order entry, means that the Group will fall well short of
current expectations.



Cost reduction programmes have been implemented across the Group. The
reorganisation of LPA Niphan will be completed during the second half of the
current year.



Our rail businesses have continued to be affected by conditions in the home
market where a number of large contracts have been placed with overseas train
manufacturers who have their own supplier bases. While some orders have been won
and we are well placed on others, displacing existing suppliers to an overseas
manufacturer, even though the product is to be re-imported to the UK, is
challenging. We believe that orders for UK built trains will resume as the
overseas capacity is taken up and reliability problems with UK built trains are
eliminated. In this respect the recent announcement that Bombardier
Transportation has been awarded a contract for 45 Turbostar Train cars (on which
the Group is an established supplier), together with an option for a further 63
cars, is encouraging. Two of our companies have been awarded 'A' class supplier
classification by Alstom Transportation, which has already led to considerable
interest from Europe.



The main manufacturing phase of Virgin West Coast, Virgin Cross Country
(Bombardier Voyager), Fourth Generation Tangarra for Australia and Kinki Sharyo
Japan for Hong Kong provided a base load during the first half. Delays and gaps
in programmes before options are exercised means there will be a lower load in
the second half, but there will be a carry over of work into next year and
beyond. The Group has worked hard to increase penetration in export markets and
this effort is now beginning to bear fruit. The next six months should see the
award of some significant contracts for the Group.



Turmoil in the telecoms market and the impact of September 11 on the aerospace
market also adversely affected the Group.



The strengthened management team is beginning to make progress and Group
companies are now more able to collaborate effectively in home and overseas
markets.



Overall conditions remain very challenging but your management team remains
confident of progress in the longer term.



Michael Rusch


Chairman
26 June 2002




Interim Unaudited Group Results for the Six Months ended 31 March 2002



CONSOLIDATED PROFIT AND LOSS ACCOUNT


£000's                                                           6 months to     * 6 months to         * Year to

                                                               31 March 2002     31 March 2001      30 Sept 2001

                                                                   Unaudited         Unaudited           Audited

Turnover                                                               7,819             6,157            13,570



Operating profit                                                         192                28               462


Net interest payable                                                   (143)             (164)             (335)

Profit / (loss) on ordinary activities before taxation                    49             (136)               127

Tax on profit on ordinary activities                                       1               101                48


Profit / (loss) on ordinary activities after taxation                     50              (35)               175

Dividends                                                               (27)               (2)              (56)

Retained profit / (loss)                                                  23              (37)               119


Earnings / (loss) per share

Basic                                                                  0.46p           (0.33p)             1.63p
Diluted                                                                0.46p           (0.33p)             1.58p
Adjusted (before amortisation of goodwill)                             0.95p             0.18p             2.63p

Dividend per share                                                     0.25p               Nil             0.50p



* As restated. See Note 3.



1.       The financial information contained in this interim statement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985. The financial information for the full preceding year is based on the
statutory accounts for the financial year ended 30 September 2001. Those
accounts, upon which the auditors issued an unqualified opinion, have been
delivered to the Registrar of Companies.

2.       The calculation of earnings per share is based on the profit after tax
of £50,000 (2001: loss after tax of £35,000) and the weighted average number of
ordinary shares in issue during the period of 10,903,229 (2001: 10,600,756). The
diluted earnings per share are the same as the basic earnings per share. The
calculation of adjusted earnings per share is based upon an adjusted profit
after tax (which excludes the amortisation of goodwill) of £104,000 (2001:
£19,000).

3.       The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's statutory accounts for the year ended
30 September 2001. FRS 19 will be adopted in the accounts to the year ended 30
September 2002. The comparative figures have been restated to reflect the
Group's adoption of FRS 19. FRS 19 requires deferred tax assets, including those
arising from tax losses, to be recognised to the extent that they are regarded
as recoverable. The effect of adopting FRS 19 is to reduce the taxation charge
in the year ended 30 September 2001 and the period ended 31 March 2001 by
£73,000 and £60,000 respectively. The balance sheet provision for deferred
taxation at these two dates has fallen by £73,000 and £60,000 respectively and
retained earnings have been increased by the same amount. The earnings per share
have been adjusted accordingly.

4.        All of the tax charge relates to liabilities within the UK.



Note: Copies of this Interim Report are being sent to shareholders. Copies are
also available to the public from the Company's Registered Office, Tudor Works,
Debden Road, Saffron Walden, Essex, CB11 4AN.







Interim Unaudited Group Results for the Six Months ended 31 March 2002



CONSOLIDATED BALANCE SHEET


£000's                                                          As at           * As at           * As at

                                                        31 March 2002     31 March 2001      30 Sept 2001

                                                            Unaudited         Unaudited           Audited
Fixed assets

Intangible assets                                               1,967             2,076             2,021
Tangible assets                                                 3,486             3,887             3,632
Investments                                                         2                 2                 2
                                                                5,455             5,965             5,655


Current assets

Stocks                                                          2,712             2,697             3,054
Debtors                                                         3,461             3,008             3,814
Cash at bank and in hand                                            6               189               119
                                                                6,179             5,894             6,987

Creditors: Amounts falling due within one year                (3,811)           (3,767)           (4,535)


Net current assets                                              2,368             2,127             2,452


Total assets less current liabilities                           7,823             8,092             8,107

Creditors: Amounts falling due after more than one            (3,209)           (3,733)           (3,496)
year


Provisions for liabilities and charges                           (90)              (94)             (110)


Net assets                                                      4,524             4,265             4,501


Capital and reserves

Called up share capital                                         1,090             1,070             1,090
Share premium account                                             254               194               254
Revaluation reserve                                               317               346               318
Merger reserve                                                    230               230               230
Profit and loss account                                         2,633             2,425             2,609


Equity shareholders' funds                                      4,524             4,265             4,501





* As restated. See Note 3.







Interim Unaudited Group Results for the Six Months ended 31 March 2002



CONSOLIDATED CASH FLOW STATEMENT


£000's                                                        6 months to     * 6 months to         * Year to

                                                            31 March 2002     31 March 2001      30 Sept 2001

                                                                Unaudited         Unaudited           Audited

Net cash inflow from operating activities                             771               544               712

Returns on investments and servicing of finance                     (138)             (159)             (325)
Taxation                                                                -              (26)                40
Capital expenditure                                                 (155)             (362)             (349)
Acquisitions                                                         (16)             (218)             (219)
Equity dividends paid                                                (54)             (150)             (150)

Net cash inflow / (outflow) before financing                          408             (371)             (291)


Financing                                                           (309)             (437)             (662)

Increase / (decrease) in cash                                          99             (808)             (953)



Note: Current period acquisition costs comprise deferred consideration.





RECONCILIATION OF OPERATING PROFIT TO NET

CASH INFLOW FROM OPERATING ACTIVITIES


Operating profit                                                      192                28                462
Depreciation and amortisation                                         359               329                693
Changes in working capital and other non cash items                   220               187              (443)


Cash inflow from operating activities                                 771               544                712






RECONCILIATION OF NET CASH FLOW TO

MOVEMENT IN NET DEBT


Increase / (decrease) in cash in the period                            99             (808)            (953)
Cash outflow from decrease in debt and lease financing                309               497              802
Change in debt resulting from cash flows                              408             (311)            (151)


New hire purchase agreements                                         (12)             (545)            (545)

Amortisation of loan costs                                            (5)               (5)             (10)


Movement in net debt in the period                                    391             (861)            (706)


Opening net debt                                                  (4,463)           (3,757)          (3,757)



Closing net debt                                                  (4,072)           (4,618)          (4,463)




* As restated. See Note 3.



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