Trading Update

RNS Number : 1084E

LPA Group PLC

02 November 2015

 

LPA GROUP PLC

("LPA" or the "Group")

LPA Group Plc, the UK based designer, manufacturer and provider of connection, LED-based lighting and electro mechanical systems to the Transport Industry, is pleased to provide the following trading update for the financial year ended 30th September 2015.

After a challenging first half, the factory load, particularly in the LED-based lighting activity, has significantly improved, delivering a much stronger performance in the second half and the previously reported problems with the integration of the fabrication capability into the electro-mechanical facility have been largely overcome. As a result, the Board expects that results for the year will be ahead of market expectations.

Order entry has been very strong throughout the year and totalled a record £26.8m for the year as a whole. The order book at the end of the year totalled more than £18m, which is also a record.  This does not include an additional approximate £7.5m of project work for which LPA has been selected, but for which the delivery programme is insufficiently defined for the orders to be entered at this stage.  Deliveries of these projects extend from 2016 to 2019.

The additional project work above includes the selection of LPA by Hitachi Rail Europe to supply connection systems and LED-based interior lighting for Hitachi's Abellio Scot Rail project, comprising 254 rail vehicles.  Preliminary orders worth £0.3m have been received and the project is expected to be worth approximately £2.8m in total, with sales commencing in 2016.

It was previously announced that LPA had been selected to supply LED-based lighting for a rail vehicle project in Queensland, Australia at a value of £2.3m.  The scope of supply has been increased such that orders worth £4.0m have now been received. Deliveries have commenced and are expected to conclude in 2018. Further opportunities are being pursued in New South Wales and Victoria in Australia.

Other export markets remain buoyant.  A further small order for inter-car jumpers has been received from Taiwan, which continues to be an important market for the group.

Orders for aircraft ground power supply equipment for New Zealand and also for London Gatwick Airport totalling £0.9m have been received and are currently being supplied.

Given the record order entry which the Group has enjoyed, the record orders now on hand and the prospects in view, we look forward to increasing progress during 2016 and beyond.

2 November 2015

ENQUIRIES:

LPA Group plc
Peter Pollock, Chief Executive	Tel: [phone] or 01799 512844
Steve Brett, Finance Director	Tel: [phone] or 01799 512860
Cairn Financial (Nominated Adviser)	Tel: [phone]
James Caithie / Avi Robinson
WH Ireland (Broker)	Tel: [phone]
Tim Feather / Liam Gibben
Instinctif Partners (PR Adviser)	Tel: [phone]
Mark Garraway / Helen Tarbet

 

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