Interim Results

LPA Group PLC

01 June 2026

 

1 June 2026

LPA Group Plc

("LPA", the "Company" or the "Group")

Interim Unaudited Group Results for the six months ended 31 March 2026

LPA Group plc, the innovation-led engineering company that designs and manufactures electronic and electro-mechanical components and systems, announces its results for the six months to 31 March 2026.

FINANCIAL HIGHLIGHTS

	6 months to 31 March 2026	6 months to 31 March 2025		Year to 30 Sept 2025
	Unaudited		Unaudited	Audited
Order Entry	£10.6m		£17.0m	£28.8m
Order Book	£29.3m		£32.8m	£32.5m
Revenue	£13.8m		£9.5m	£21.5m
Adjusted EBITDA*	£1.0m		£(0.5)m	£(0.1)m
Profit / (Loss) Before Tax	£0.4m		£(0.5)m	£(0.6)m
Basic Profit / (Loss) Per Share	2.89p		(1.49)p	(2.64)p
Net Assets per share	124.0p		116.9p	118.3p
Gearing **	34.8%		24.1%	21.5%

* Adjusted EBITDA is Operating Profit/(Loss) before Share Based Payments, Negative Goodwill, Non-recurring items, Depreciation and Amortisation

** Net Debt as a % of Total Equity

Robert Horvath, Chairman, commented:

I am pleased to report that the Company has delivered a strong performance in the first half of the year.

We are actively collaborating with a number of customers to develop tailored products, while maintaining a clear focus on fulfilling shorter-term orders to support immediate delivery requirements. Although we continue to await updates on several longer-term contracts, overall sales volumes have remained robust and in line with budget expectations.

Looking ahead, the outlook for the second half of the year is encouraging. We remain confident in our long-term growth prospects and our ability to generate sustained value for our shareholders. We therefore expect to deliver full-year results in line with current market expectations.

Enquiries:

LPA Group plc	[phone]
Robert B Horvath, Chairman Philo Daniel-Tran, Chief Executive Officer		www.lpa-group.com
Stuart Stanyard, Chief Financial Officer
Cavendish Capital Markets Limited (Nominated Advisor & Broker)	[phone]
Corporate Finance Ed Frisby / Elysia Bough / Joe Smith
Corporate Broking Ella Bedford

About LPA

LPA Group plc (AIM: LPA) is an innovation‑led engineering company that designs and manufactures electronic and electro‑mechanical components and systems.

Focused on transport (Rail and Aviation), Defence, Infrastructure and Industrial markets and supplying into hostile and challenging environments, LPA is known for engineering solutions to improve product reliability, reducing maintenance and life cycle costs.

The Group has four sites across the UK, selling to customers in the UK and overseas. Three of these are design and manufacturing sites: Saffron Walden, Essex - electro-mechanical systems for Rail, Aviation and Industrial; Knapwell, Cambridge - power supplies for the Rail market, Normanton, Yorkshire - LED lighting and electronic systems for Rail and Infrastructure. The fourth site is Newbury, Berkshire - value-added distribution of engineered components for Rail, Aerospace and Defence.

With over 160 years of UK design and manufacture, and with origins in the first ever light installed in 'Electric Avenue', Brixton; innovation is core to LPA and to the products and services supplied to our customers worldwide.

For more information visit www.lpa-group.com

CHAIRMAN'S STATEMENT

Last year I reported that the Group was growing revenue in line with our strategy and 5-year plan and with a target of achieving organic revenue growth 50% higher in 2028 than in 2024. Over the last six months we have seen continued strength in our revenue performance, supported by additional opportunities generated through the efforts of a more focused sales team.  Importantly, I stated that we will supplement our journey with new opportunities to acquire product lines or businesses, but always with resilient intellectual property rights embedded within them. This will enable us to leverage our technical engineering skills to best effect, the acquisition of Martek is a clear example of this strategy in action.

Rail remains at the heart of our business and will continue to play a critical role in maintaining a consistent flow of work through the factories. New projects are keenly fought for in this market segment and the Government's slowdown to the deep tube projects has also had a wider impact in this sector. Therefore, our aftercare market and maintenance products are key to delivering turnover and maintaining strong customer relationships remain the life blood for generating volume. The work done in the last 6 months by the newly structured sales teams working as one group has been instrumental in growing the revenue line; especially around our distribution business.

Enquiry levels for Aerospace and Aviation products remain strong and over the last six months our teams have generated new opportunities, providing increased visibility into the scale of the market potential available to us. The Red Box sales programme continues to show encouraging progress with certification across the range of product lines more than 80% complete. Plane Power product sales are building momentum, and we are seeing global demand for our 'crocodile' cable carriers. In addition, our distribution business plays an important role in supporting growth in our non-rail markets.

The Board remains committed to its strategy to grow the business and is actively exploring opportunities to expand through the addition of new products and businesses. Dr Philo Daniel-Tran, our Chief Executive Officer is bringing clear vision and focus to this strategy, particularly in aerospace and defence, to create targets for our growth and importantly adding the capabilities to support her. The past year has been a period of significant transformation with an emphasis on enhancing sales and marketing, advancing engineering capabilities and operational excellence. This transformation has been successful, positioning the Group for further growth.

In April, we have welcomed Nils von Essen into our boardroom. He is attending Board meetings at the behest of Mr Peter Gyllenhammer, our largest shareholder. Mr von Essen is currently employed by Peter Gyllenhammar AB. He has strong commercial experience in product management and an MSc in technical management. 

Robert B Horvath

Chairman                             

29 May 2026

CEO Review

LPA Group's improved performance and delivery in the second half of FY25 has continued into the first half of FY26. We continue to demonstrate the resilience of our multi-site operations and the strength of the long-term relationships we have built with our customers. We are building on the core capabilities across our business, supported by our long serving team and the addition of new talent. Together, this blend of experience and new capabilities will further strengthen our ability to drive growth and delivery.

Our diversification strategy focusing on market adjacencies and innovation, will allow us to confidently navigate market dynamics, even amidst an uncertain global political landscape. We continue to broaden our portfolio to achieve a balanced order book, by combining larger contract wins with shorter-cycle recurring revenue streams. As highlighted in our Annual Report, Aviation, Aerospace, and Defence remain key strategic priorities. We are accelerating growth in Aviation through new product launches in the second half of FY26. In Aerospace and Defence, we are moving beyond value added distribution by developing organic solutions, strengthening our capabilities and long-term market position.

Ongoing product rationalisation across both acquired and existing products, together with innovation for product enhancement, is creating new opportunities across all our market sectors with both new and existing customers.

We have initiated an ERP (Enterprise Resource Planning) harmonisation programme to enhance operations. This initiative will integrate all aspects of the business from order entry and design through to manufacturing, customer delivery and sustainment. 

Aerospace and Defence has had a solid start to the year with performance in H1 FY26 ahead in absolute terms with a combination of new customer orders, alongside continued call-offs from existing programmes. LPA is working closely with emerging eVTOL (electric vertical take-off and landing) and new airline manufacturers. Securing 'designed in' positions on these prototypes will support future growth as they achieve certification and transition into production. FY26 is also expected to see further growth in Defence land vehicle solutions, and we continue to identify significant opportunities in both new and refurbishment programmes in this sub-sector.

Aviation products include the Plane Power connector range for Ground Support Units, the cable carrier systems (crocodiles) and the Red Box power supply range. Managing key suppliers and completing product redesign remain key priorities as we work to fully re-establish the portfolio of products for this market segment during 2026.

We are enhancing the Red Box product range in response to customer demand and regulatory compliance, with the majority of the newly improved range already released and the remaining products to be finalised by August 2026.

Rail aftercare projects in the UK have slowed as the industry awaits new funding decisions and subsequent investment, especially with uncertainty around GBR (Great British Railways) and the renationalisation of the UK rail network. While H1 FY26 saw existing project wins finally moving into production, progress has slowed in H2 FY26 with several projects being deferred. We are further enhancing our business development capabilities in global growth markets in Q3 FY26.

Within Industrial and Infrastructure our niche range of specialist electrical 'Niphan' connectors and ATEX lighting has delivered strong demand and growth in FY26. We will now invest in more dedicated business development capability in Q4 FY26, refocusing on this sector to support further growth into FY27.

As outlined in our Annual Report, we successfully refinanced our debt facilities in January 2026 through a three-year revolving credit facility secured against property and receivables with Arbuthnot Latham.

Revenue has grown by 45% in the first half compared to 1H 2025. This strong growth, combined with continued delays in receivables from key customers and a focus on improving supplier settlements, has resulted in an increase in gearing to 34.5%, up from 21.5% at 30 September 2025. The new facility has provided approximately £2 million of additional headroom, enabling us to support accelerated expansion and growth while we focus on generating future cash profits to reduce debt levels.

As we pursue our objective of significant growth, beyond our organic growth we are also actively exploring potential acquisition targets that align with our strategic priorities.

We continue to make significant progress as we invest in resilience and long-term success. With rising global demand for Aviation, Aerospace and Defence technologies, alongside expanded opportunities in global rail refurbishment and new build markets, we are well-positioned to unlock growth opportunities in the current year and the years ahead.

Philo Daniel-Tran

CEO                                     

29 May 2026

CONSOLIDATED INCOME STATEMENT

	6 months to	As restated 6 months to	Year to
	31 Mar 26	31 Mar 25	30 Sept 25
	Unaudited	Unaudited	Audited
	£000	£000	£000
Revenue - Continuing Operations                    4	13,764	9,523	21,546
Cost of Sales	(9,808)	(7,581)	(16,788)
Gross Profit	3,956	1,942	4,758
Distribution Costs	(1,195)	(1,067)	(2,104)
Administrative Expenses - Exceptional	(57)	(49)	62
Administrative Expenses - Other                     5	(2,343)	(1,944)	(3,948)
Negative Goodwill	-	640	640
Other Income	5	-	-
Operating Profit / (Loss)	366	(478)	(592)
Negative Goodwill	-	(640)	(640)
Non-recurring items                                             6	57	49	(62)
Depreciation and Amortisation	615	553	1,244
Adjusted EBITDA	1,038	(516)	(50)
Finance Income	151	123	248
Financing Costs	(135)	(120)	(258)
Profit / (Loss) Before Tax	382	(475)	(602)
Taxation	-	278	253
Profit / (Loss) for the Period	382	(197)	(349)
Attributable to:
- Equity Holders of the Parent	382	(197)	(349)
Profit / (Loss) per Share                                          7
- Basic	2.89p	(1.49)p	(2.64)p
- Diluted	2.70p	(1.49)p	(2.64)p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
	6 months to	6 months to	Year to
	31 Mar 26	31 Mar 25	30 Sept 25
	Unaudited	Unaudited	Audited
	£000	£000	£000
Profit / (Loss) for the Period	382	(197)	(349)
Other Comprehensive Income
Items that will not be reclassified to profit or loss:
Actuarial  Gain / (Loss) on Pension Scheme	63	(297)	200
(Increase) / Decrease of Restriction of Pension Asset	(47)	55	(93)
Other Comprehensive Income / (Loss)	16	(242)	107
Total Comprehensive Income / (Loss) for the Period	398	(439)	(242)

CONSOLIDATED BALANCE SHEET
	As at	As at	As at
	31 Mar 26	31 Mar 25	30 Sept 25
	Unaudited	Unaudited	Audited
	£000	£000	£000
Non-Current Assets
Intangible Assets	3,802	4,213	3,989
Plant Property and Equipment	4,392	5,094	4,597
Right of Use Assets	434	572	573
Deferred Tax Asset	109	123	109
Retirement Benefits	4,200	3,619	4,061
	12,937	13,621	13,329
Current Assets
Inventories	6,352	6,288	6,362
Trade and Other Receivables	8,320	5,546	6,474
Derivative Asset	6	80	-
Current Tax Receivable	-	34	23
Cash and Cash Equivalents	494	-	-
	15,172	11,948	12,859
Total Assets	28,109	25,569	26,188
Current Liabilities
Bank Loans	-	(105)	(109)
Bank overdraft	-	(1,020)	(806)
Lease Liabilities	(185)	(229)	(222)
Deferred Consideration	-	(275)	-
Derivative Liability	-	-	(70)
Trade and Other Payables	(5,534)	(5,701)	(6,696)
Current Tax Payable	(1)	-	-
	(5,720)	(7,330)	(7,903)
Non-Current Liabilities
Bank Loans	(5,961)	(2,300)	(2,243)
Lease Liabilities	(43)	(149)	(55)
	(6,004)	(2,449)	(2,298)
Total Liabilities	(11,724)	(9,779)	(10,201)
Net Assets	16,385	15,790	15,987
Equity
Share Capital	1,351	1,351	1,351
Investment in Own Shares	(324)	(324)	(324)
Share Premium Account	959	959	959
Share Based Payment Reserve	62	62	62
Merger Reserve	230	230	230
Retained Earnings	14,107	13,512	13,709
Equity Attributable to Shareholders of the Parent	16,385	15,790	15,987

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Share Capital	Investment in Own Shares	Share Premium Account	Share Based Payment Reserve	Merger Reserve	Retained Earnings	Total
2026 - 6 months (Unaudited)	£000	£000	£000	£000	£000	£000	£000
At 1 October 2025	1,351	(324)	959	62	230	13,709	15,987
Profit (Loss) for the Period	-	-	-	-	-	382	382
Other Comprehensive Income (Expense)	-	-	-	-	-	16	16
Total Comprehensive Income (Expense)	-	-	-	-	-	398	398
At 31 March 2026	1,351	(324)	959	62	230	14,107	16,385

	Share Capital	Investment in Own Shares	Share Premium Account	Share Based Payment Reserve	Merger Reserve	Retained Earnings	Total
2025 - 6 months (Unaudited)	£000	£000	£000	£000	£000	£000	£000
At 1 October 2024	1,351	(324)	959	62	230	13,951	16,229
Profit (Loss) for the Period	-	-	-	-	-	(197)	(197)
Other Comprehensive Income (Expense)	-	-	-	-	-	(242)	(242)
Total Comprehensive Income (Expense)	-	-	-	-	-	(439)	(439)
At 31 March 2025	1,351	(324)	959	62	230	13,512	15,790

	Share Capital	Investment in Own Shares	Share Premium Account	Share Based Payment Reserve	Merger Reserve	Retained Earnings	Total
2025 -Year Audited	£000	£000	£000	£000	£000	£000	£000
At 1 October 2024	1,351	(324)	959	62	230	13,951	16,229
Profit (Loss) for the Year	-	-	-	-	-	(349)	(349)
Other Comprehensive Income (Expense)	-	-	-	-	-	107	107
Total Comprehensive Income (Expense)	-	-	-	-	-	(242)	(242)
At 30 September 2025	1,351	(324)	959	62	230	13,709	15,987

CONSOLIDATED CASH FLOW STATEMENT
	6 months to	6 months to	Year to
	31 Mar 26	31 Mar 25	30 Sept 25
	Unaudited	Unaudited	Audited
	£000	£000	£000
Profit / (Loss) Before Tax	382	(475)	(602)
Financing Costs	135	120	258
Finance Income	(151)	(123)	(248)
Operating Profit / (Loss)	366	(478)	(592)
Adjustments for:
Amortisation of Intangible Assets	187	235	450
Depreciation of Plant, Property and Equipment	259	243	447
Depreciation of Right of Use Assets	169	75	347
Profit on Sale of Property	-	-	(262)
Loss on Sale of Plant, Property and Equipment	-	-	25
Negative Goodwill	-	(640)	(640)
Operating Cash Flow Before Movements in Working Capital	981	(565)	(225)
Movements in Working Capital:
Decrease / (Increase) in Inventories	10	(107)	(181)
(Increase) / Decrease in Trade and Other Receivables	(1,851)	182	(746)
(Decrease) / Increase in Trade and Other Payables	(929)	(457)	424
Cash Outflow Generated from Operations	(1,789)	(947)	(728)
Income Taxes Received	24	-	-
Net Cash Outflow from Operating Activities	(1,765)	(947)	(728)
Investing Activities
Purchase of Business Net of Cash Acquired	(275)	(351)	(351)
Purchase of Property, Plant & Equipment	(17)	(32)	(74)
Sale Proceeds from Sale of Assets	-	-	375
Expenditure on Intangible Assets	-	(125)	(122)
Expenditure on Capitalised Development Costs	-	(6)	-
Net Cash Outflow from Investing Activities	(292)	(514)	(172)
Financing Activities
Drawdown / (Repayment) of Bank Loan	3,609	(50)	(103)
Principal Elements of Lease Liabilities	(117)	(104)	(260)
Interest Paid	(135)	(120)	(258)
Net Cash Inflow / (Outflow) from Financing Activities	3,357	(274)	(621)
Net Increase / (Decrease) in Cash and Cash Equivalents	1,300	(1,735)	(1,521)
Cash and Cash Equivalents at Start of Period	(806)	715	715
Cash and Cash Equivalents at End of Period	494	(1,020)	(806)

NET DEBT

An analysis of the change in net debt is shown below:

	Bank Loan	Lease Liabilities	Cash and Cash Equivalents	Net Debt
	£000	£000	£000	£000
At 1 October 2025	2,352	277	806	3,435
Interest Costs	111	7	23	141
New Lease Obligations	-	68	-	68
New Bank Loan	5,898	-	(5,791)	107
Repayment of Borrowings / Lease Liabilities	(2,400)	(124)	2,524	-
Other Cash Generated	-	-	1,944	1,944
At 31 March 2026	5,961	228	(494)	5,695

Notes to the financial statements

Note 1       BASIS OF PREPARATION

These interim financial statements are for the six months ended 31 March 2026. They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 September 2025.

These interim financial statements have been prepared in accordance with the requirements of UK-adopted International Accounting Standards. These financial statements have been prepared under the historical cost convention with the exception of certain items which are measured at fair value.

These interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 30 September 2025.  The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements and are expected to be followed throughout the year ending 30 September 2026.

Note 2       Summary of Significant Accounting Policies

Use of judgements and estimates

In preparing these interim financial statements management is required to make judgements on the application of the Group's accounting policies and make estimates about the future.  Actual results may differ from these assumptions.  The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those described in the consolidated financial statements for the year ended 30 September 2025.

New standards and interpretation adopted by the Group

There has been no impact of new standards and interpretations adopted in the period.

NOTE  3       GOING CONCERN

The Group's business activities and the factors likely to affect its future performance together with the Group's treasury policy, its approach to the management of financial risk, and its exposure to liquidity and credit risks are outlined fully in the Annual Report & Accounts 2025 which details trading, new financing  and to a lesser extent supply chain shortages and inflationary pressures.

In assessing going concern the Directors note that the Group: (i) will continue to trade profitably in the near term; (ii) has in place adequate working capital facilities for its forecast needs with its recent refinancing and strong cash management; (iii) has a strong current order book with significant further opportunities in its market place; and (iv) has proven adaptable in past periods of adversity over many years.  Therefore, the Directors believe that it is well placed to manage its business risks successfully.

The directors believe the recent £8.75m refinancing completed on 16^th January 2026 will create circa £2m of headroom of facilities for the group to expand more quickly and to manage growth whilst also mitigating any additional project delays, while we generate cash profits in the future to repay the debt

Having assessed all aspects of the business and the likely effectiveness of mitigating actions that the Directors would consider undertaking or have undertaken,  the Directors consider it remains appropriate to continue to adopt the going concern basis in the preparation of these group interim financial statements.

NOTE 4       Operating Segments

All the Group's operations and activities are based in, and its assets located in, the United Kingdom.  For management purposes the Group comprises three product groups (in accordance with IFRS 8) - LPA Connection Systems (electro-mechanical), LPA Lighting Systems (lighting & electronics) systems and LPA Channel Electric (value add distribution), which collectively design, manufacture and market industrial electrical and electronic products. They  operate across three market segments - Rail; Aerospace & Defence, Industrials and Other. It is on this basis that the Board of Directors assess Group performance. The revenue split is as follows:

	6 months to	6 months to	Year to
	31 Mar 26	31 Mar 25	30 Sept 25
	Unaudited	Unaudited	Audited
Electro-mechanical	5,156	3,883	8,141
Lighting and electronics	4,816	3,546	8,112
Value add distribution	3,792	2,094	5,293
	13,764	9,523	21,546

All revenue originates in the UK. An analysis by market segments and geographical markets is given below:

	6 months to	6 months to	Year to
	31 Mar 26	31 Mar 25	30 Sept 25
	Unaudited	Unaudited	Audited
Rail	69%	64%	66%
Aviation	12%	19%	17%
Aerospace and Defence	10%	12%	11%
Industrial & Other	9%	5%	6%
	100%	100%	100%

United Kingdom	61%	57%	53%
Rest of Europe	26%	33%	35%
Rest of the World	13%	10%	12%
	100%	100%	100%

NOTE 5       ADMINISTRATION COSTS - OTHER

Administration costs are higher between half years due to the impact of the Martek acquisition and the costs of establishing the correct operating team.

NOTE  6      Non-Recurring ITEMS

The non-recurring item of £57,000  (2025:£49,000) relates to cost relating to group reorganisation / staff changes. The non-recurring item in the year to 30 September 2025 related to the profit on the sale of a property, the acquisition of the trading assets of Martek Power and group reorganisation / staff changes costs.

NOTE 7       EaRNINGS / (Loss) PER SHARE

The calculations of earnings/(loss) per share are based upon the earnings/(loss) after tax attributable to ordinary equity shareholders and the weighted average number of ordinary shares in issue during the period, less investment in own shares. 

Details are as follows:

	6 months to	6 months to	Year to
	31 Mar 26	31 Mar 25	30 Sept 25
	Unaudited	Unaudited	Audited
Profit / (Loss) for the period - £000	382	(197)	(349)
Weighted average number of ordinary shares in issue during the period (thousand)
	13,213	13,203	13,213
Dilutive effect of share options (thousand)	928	-	-
Number of shares for diluted earnings per share (thousand)	14,141	13,203	13,213
Basic earnings /  (loss) per share	2.89p	(1.49)p	(2.64)p
Diluted earnings / (loss) per share	2.70p	(1.49)p	(2.64)p

Basic and diluted earnings per share are based on the weighted average number of ordinary shares and share options in issue during the period.  For the period ended 31 March 2025 and 30 September 2025, the basic and diluted loss per share is equal since where a loss is incurred the effect of outstanding share options and warrants is considered anti-dilutive and is ignored for the purpose of the loss per share calculation.

NOTE 8       RESTATEMENT OF HY 2025 INCOME STATEMENT

We have reclassified some costs from Cost of Goods sold to Administration Expenses - Other in the half year 2025, so all three periods shown are all on a comparable basis.

NOTE 9       INFORMATION

LPA Group Plc is the Group's ultimate parent company. It is incorporated in England and Wales and domiciled in the UK, Company Number 686429. The address of LPA Group Plc's registered office, which is also its principal place of business, is Light & Power House, Shire Hill, Saffron Walden, CB11 3AQ, UK. LPA Group Plc's shares are quoted on the AIM market of the London Stock Exchange.

LPA Group Plc's consolidated interim financial statements are presented in Pounds Sterling (£000), which is also the functional currency of the parent company. These interim financial statements have been approved for issue by the Board of Directors on 29 May 2026. The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 30 September 2025 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unmodified and did not contain statements under Section 498(2) or Section 498(3) of the Companies Act 2006.

Copies of this Interim Report are being sent to shareholders who have requested to receive a hard copy. Shareholders are encouraged to access copies which are available on the Company's website (www.lpa-group.com).. A printout of the Interim Report will also be available by request from the Company's Registrar, or the Company's registered office, address as above or by email: [e-mail] .

Shareholders are encouraged to visit our website where useful links and assistance have been provided, including our Registrars, to assist utilisation of digital channels and receipt of future dividends and our Brokers who provide equity research.

 

END