Interim Results

LPA Group PLC
15 June 2005


NEWS RELEASE

15 JUNE 2005


INTERIM UNAUDITED GORUP RESULTS FO THE SIX MONTHS ENDED 1 APRIL 2005


LPA Group Plc, the electrical and electronic equipment manufacturer and
distributor, announces a pre tax profit fo £45,000 (2004: £39,000) for 1 April
2005.

                                               Key Points
                                                                                        2005         2004

Turnover                                                                                £6.6         £6.7

Profit before Tax                                                                    £45,000      £39,000

Earnings per share
- Basic                                                                                0.32p        0.28p
- Diluted                                                                              0.32p        0.27p
- Adjusted (before goodwill amortization)                                              0.74p        0.70p

Dividends                                                                              0.15p        0.15p

Gearing                                                                                  67%          69%

Strong Long Term Order Entry

Order Book up 41%

Tender and enquiry level for rail home and export markets remains high

Gap in factory load will limit progress this year

Operational efficiency improving

Peter Pollock, Chief Executive, commented

'After a good start, short term business went very flat in January and February.
Unfortunately this has continued into the current quarter, which will limit
progress this year. As announced at the AGM in March, we continue to win
significant long term rail contracts and our long term order book is at record
high levels, which bodes well for the future.  We continue to develop our
relationships with major customers in Europe and Asia and we are receiving high
levels of enquiries, which we hope will lead to significant future export led
growth. Prospects are exciting, though we face challenges in the short term.

Our objectives remain to deliver shareholder value, to grow sales in both home
and export markets, and to improve operational performance and profitability.'


Enquiries:

Peter Pollock     Chief Executive                            01799 512 844
Stephen Brett     Finance Director                           01799 512 860
James Glancy      Teather & Greenwood Limited                020 7426 9010
Robert Naylor     Teather & Greenwood Limited                020 7426 3297



Interim Unaudited Group Results for the Six Months ended 1 April 2005


CHAIRMAN'S STATEMENT

The Group has continued to trade profitably although progress has been limited.
A profit before tax of £45,000 (2004: £39,000) was achieved for the six months
to 1 April 2005, on a slightly reduced turnover of £6.6m (2004: £6.7m). Basic
earnings per share progressed 14% to 0.32p per share (2004: 0.28p). The interim
dividend has been maintained at 0.15p per share (2004: 0.15p) and will be paid
on 30 September 2005 to shareholders registered at the close of business on 9
September 2005.

The order book has increased 41% since March last year. This does not include
significant contracts for which we have been selected, but for which precise
details have yet to be agreed. Much of the order book is long term and will
begin to be reflected in sales output during the second half of 2006 and
thereafter.

Major new contracts won by the Group have mainly related to the rail rolling
stock sector, although some success has been enjoyed in aircraft support,
aerospace and defence. Tendering activity continues at a high level for both
home and export customers.

Operational improvements have been achieved, and we have commenced procurement
of tooling and components from low cost sources.

Shareholders will be aware that there has been a slow down in UK manufacturing
this year and as a result we have continued to experience a lower level of short
term orders than expected and a delay of certain contracts. The rail vehicle
sector, which accounts for about 50% of the Group's activities, is experiencing
a gap in short term demand which, coupled with the foregoing comments, will
affect the Group's performance this year.

However, the long-term order book is very strong and prospects both in home and
export markets are most encouraging. Your management will continue to work hard
to deliver those prospects.


Michael Rusch
Chairman
15 June 2005


LPA GROUP PLC

Interim Unaudited Group Results for the Six Months ended 1 April 2005


CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                                                 6 months to       6 months to           Year to
                                                                1 April 2005      2 April 2004      30 Sept 2004
                                                                   Unaudited         Unaudited           Audited
                                                                      £000's            £000's            £000's

Turnover                                                               6,614             6,740            13,540

Operating profit                                                         143               136               337

Net interest payable                                                    (98)              (97)             (194)

Profit on ordinary activities before taxation                             45                39               143

Tax on profit on ordinary activities                                    (10)               (9)               (4)

Profit on ordinary activities after taxation                              35                30               139

Dividends                                                               (16)              (16)              (49)

Transfer to reserves                                                      19                14                90

Earnings per share
Basic                                                                  0.32p             0.28p             1.27p
Diluted                                                                0.32p             0.27p             1.27p
Adjusted (before amortisation of goodwill)                             0.74p             0.70p             2.13p

Dividend per share                                                     0.15p             0.15p             0.45p



LPA GROUP PLC

Interim Unaudited Group Results for the Six Months ended 1 April 2005


CONSOLIDATED BALANCE SHEET

                                                                       As at             As at             As at
                                                                1 April 2005      2 April 2004      30 Sept 2004
                                                                   Unaudited         Unaudited           Audited
                                                                      £000's            £000's            £000's
Fixed assets
Intangible assets                                                      1,374             1,467             1,420
Tangible assets                                                        2,331             2,539             2,388

                                                                       3,705             4,006             3,808
Current assets
Stocks                                                                 2,398             2,386             2,491
Debtors                                                                3,172             2,871             2,806
Cash at bank and in hand                                                   2                 3                 3

                                                                       5,572             5,260             5,300

Creditors: Amounts falling due within one year                       (3,817)           (3,473)           (3,460)

Net current assets                                                     1,755             1,787             1,840

Total assets less current liabilities                                  5,460             5,793             5,648

Creditors: Amounts falling due after more than one year              (1,368)           (1,795)           (1,575)

Provisions for liabilities and charges                                   (5)               (6)               (5)

Net assets                                                             4,087             3,992             4,068

Capital and reserves
Called up share capital                                                1,090             1,090             1,090
Share premium account                                                    254               254               254
Revaluation reserve                                                      314               315               314
Merger reserve                                                           230               230               230
Profit and loss account                                                2,199             2,103             2,180

Equity shareholders' funds                                             4,087             3,992             4,068




LPA GROUP PLC

Interim Unaudited Group Results for the Six Months ended 1 April 2005


CONSOLIDATED CASH FLOW STATEMENT

                                                                6 months to       6 months to           Year to
                                                               1 April 2005      2 April 2004      30 Sept 2004
                                                                  Unaudited         Unaudited           Audited
                                                                     £000's            £000's            £000's

Net cash inflow from operating activities                               238               716               948
Returns on investments and servicing of finance                        (93)              (92)             (183)
Taxation                                                                  -                 -                 -
Capital expenditure                                                   (130)             (109)             (158)
Equity dividends paid                                                  (33)              (27)              (43)

Net cash (outflow) / inflow before financing                           (18)               488               564

Financing                                                             (222)             (218)             (441)

(Decrease) / increase in cash                                         (240)               270               123


RECONCILIATION OF OPERATING PROFIT TO
NET CASH INFLOW FROM OPERATING ACTIVITIES

Operating profit                                                        143               136               337
Depreciation and amortisation                                           240               267               520
Changes in working capital and other non cash items                   (145)               313                91

Net cash inflow from operating activities                               238               716               948



RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

(Decrease) / increase in cash in the period                           (240)               270              123
Cash outflow from decrease in debt and lease financing                  222               218              441

Change in debt resulting from cash flows                               (18)               488              564

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

Movement in net debt in the period                                     (23)               483              553

Opening net debt                                                    (2,697)           (3,250)          (3,250)

Closing net debt                                                    (2,720)           (2,767)          (2,697)



Notes:
     
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 2004. 
     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 upon the profit after tax of
     £35,000 (2004: £30,000) and the weighted average number of ordinary shares 
     in issue during the period of 10.903m (2004: 10.903m). The weighted average 
     number of ordinary shares diluted for the effect of outstanding share 
     options was 11.016m (2004: 10.958m). Adjusted earnings per share, which is 
     disclosed to reflect the underlying performance of the Company, has been 
     calculated on a profit of £81,000 (2004: £76,000) being the profit after 
     tax before the amortisation of goodwill.

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 2004.

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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