Interim Results

LPA Group PLC
25 June 2003

LPA GROUP PLC
25 JUNE 2003 - EMBARGOED FOR 7AM


                     LPA GROUP PLC ('LPA' or the 'Company')

               INTERIM UNAUDITED GROUP RESULTS FOR THE SIX MONTHS
                              ENDED 31 MARCH 2003


CHAIRMAN'S STATEMENT

As I reported to Shareholders in the Annual Report for last year and as
commented at the Annual General Meeting, the start of this financial year has
been very difficult. The factory load during the period was weak, and as a
consequence the cost base has been reduced. As a result a loss before tax of
£288,000 was incurred during the six month period ended 31 March 2003, against a
profit of £49,000 in the first half of last year and a loss of £318,000 for the
year as a whole. Sales during the period amounted to £5.919m against £7.819m
last year, a fall of 24.3%. The loss per share amounted to 2.33p against basic
earnings per share of 0.46p last year. Your board does not propose to pay a
dividend in respect of the half year result.

Gearing reduced from 85% at the year end to 81% at the half year end. Net debt
reduced from £3.491m to £3.122m at 31 March 2003. This was achieved despite the
losses, through tight control of working capital and the disposal of two
properties, which had become surplus to requirements. The profit on the sale of
these properties amounted to £106,000.

As reported at the Annual General Meeting, order entry has been much improved
and this has continued. Order entry for the first eight months of the year is
£2.3m ahead of the same period last year, up 36%. The Group returned monthly
profits during the quarter ended 30 April 2003. There are still issues to be
faced but less challenging times are now being enjoyed.

The cost reduction implemented during the first half was essential to the future
of the Group and the cost base is more in line with the sustainable work load,
which when translated in to sales has allowed the Group to make profits.

The improvement in order entry is fairly general across the Group and no really
large orders have been received, most significant orders being in the £250,000
to £750,000 range. There is an expectation that this level of order entry can be
maintained and maybe exceeded, but we will remain cautious and vigilant, to try
to avoid the feast and famine which has been so damaging over the last three
years.

Despite the not unexpected news that Alstom will cease the manufacture of new
rolling stock in the UK, rail has been a better market recently. We expect
aerospace and defence to decline and telecoms to remain depressed although there
are some signs of recovery. Infrastructure, industrial and exports remain
opportunities.

It is early days but the new management structure and the unified sales force
appears to be making progress. There is clear evidence of the business units
working together to reduce cost and improve performance.

Conditions have improved. Much remains to be done and issues resolved. Progress
will be limited during the second half.


MICHAEL RUSCH
CHAIRMAN
25 June 2003


Enquiries:

Peter Pollock
Chief Executive                                 07881 626 123

Christopher Hardie
Teather & Greenwood Limited                     020 7426 9000

Robert Naylor
Teather & Greenwood Limited                     020 7426 9000



CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the six months ended 31 March 2003


£000's                                                           6 months to       6 months to       Year to
                                                               31 March 2003     31 March 2002  30 Sept 2002
                                                                   Unaudited         Unaudited       Audited

TURNOVER                                                               5,919             7,819        13,806


OPERATING (LOSS) / PROFIT                                              (277)               192          (56)

Profit on sale of tangible fixed assets                                  106                 -             -

(LOSS) / PROFIT ON ORDINARY ACTIVITIES BEFORE INTEREST                 (171)               192          (56)

Net interest payable                                                   (117)             (143)         (262)

(LOSS) / PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                 (288)                49         (318)

Tax on profit on ordinary activities                                      34                 1          (27)

(LOSS) / PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                  (254)                50         (345)

Dividends                                                                  -              (27)          (27)

RETAINED (LOSS) / PROFIT                                               (254)                23         (372)

(LOSS) / EARNINGS PER SHARE
Basic                                                                (2.33p)             0.46p       (3.16p)
Diluted                                                              (2.33p)             0.46p       (3.16p)
Adjusted (before amortisation of goodwill)                           (1.91p)             0.95p       (2.17p)

DIVIDEND PER SHARE                                                       Nil             0.25p         0.25p


CONSOLIDATED BALANCE SHEET


£000's                                                                 As at            As at           As at
                                                               31 March 2003    31 March 2002    30 Sept 2002
                                                                   Unaudited        Unaudited         Audited
FIXED ASSETS
Intangible assets                                                      1,560            1,967           1,606
Tangible assets                                                        2,891            3,486           3,320
Investments                                                                -                2               -
                                                                       4,451            5,455           4,926
CURRENT ASSETS
Stocks                                                                 2,535            2,712           2,350
Debtors                                                                2,645            3,461           2,276
Cash at bank and in hand                                                   4                6               5
                                                                       5,184            6,179           4,631

CREDITORS: Amounts falling due within one year                       (3,497)          (3,811)         (2,611)

NET CURRENT ASSETS                                                     1,687            2,368           2,020

TOTAL ASSETS LESS CURRENT LIABILITIES                                  6,138            7,823           6,946

CREDITORS: Amounts falling due after more than one year              (2,194)          (3,209)         (2,713)

PROVISIONS FOR LIABILITIES AND CHARGES                                  (69)             (90)           (104)

NET ASSETS                                                             3,875            4,524           4,129

CAPITAL AND RESERVES
Called up share capital                                                1,090            1,090           1,090
Share premium account                                                    254              254             254
Revaluation reserve                                                      316              317             317
Merger reserve                                                           230              230             230
Profit and loss account                                                1,985            2,633           2,238

EQUITY SHAREHOLDERS' FUNDS                                             3,875            4,524           4,129


CONSOLIDATED CASH FLOW STATEMENT


£000's                                                          6 months to       6 months to       Year to
                                                              31 March 2003     31 March 2002  30 Sept 2002
                                                                  Unaudited         Unaudited       Audited

Net cash inflow from operating activities                               390               771         1,596
Returns on investments and servicing of finance                       (112)             (138)         (251)
Taxation                                                                  -                 -             -
Capital expenditure                                                     263             (155)         (240)
Acquisition costs (being deferred consideration)                      (167)              (16)          (14)
Equity dividends paid                                                     -              (54)          (81)

Net cash inflow before financing                                        374               408         1,010

Financing                                                             (265)             (309)         (627)

Increase in cash                                                        109                99           383



RECONCILIATION OF OPERATING (LOSS) / PROFIT TO
NET CASH INFLOW FROM OPERATING ACTIVITIES

Operating (loss) / profit                                          (277)               192              (56)
Depreciation and amortisation                                        320               359               723
Changes in working capital and other non cash items                  347               220               929

Cash inflow from operating activities                                390               771             1,596


RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT

Increase in cash in the period                                        109                99              383
Cash outflow from decrease in debt and lease financing                265               309              627
Change in debt resulting from cash flows                              374               408            1,010

New hire purchase agreements                                            -              (12)             (27)
Amortisation of loan costs                                            (5)               (5)             (11)

Movement in net debt in the period                                    369               391              972

Opening net debt                                                  (3,491)           (4,463)          (4,463)

Closing net debt                                                  (3,122)           (4,072)          (3,491)


NOTES TO THE INTERIM ACCOUNTS
     
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 2002. 
     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 loss after tax of
     £254,000 (2002: profit after tax of £50,000) and the weighted average 
     number of ordinary shares in issue during the period of 10,903,229 (2002: 
     10,903,229). 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 loss after tax (which excludes the amortisation of 
     goodwill) of £208,000 (2002: profit of £104,000).

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 2002.

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.


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