LPA Lpa Group Plc

TIDMLPA

RNS Number : 1890L

LPA Group PLC

04 September 2019

LPA GROUP PLC

("LPA" or the "Group")

GBP4m Contract Wins and Trading Update

LPA Group plc, the high reliability LED lighting and electro-mechanical system manufacturer, is pleased to announce contract wins totalling GBP4m for new products including complex under-frame electro-mechanical boxes for railway rolling stock and, a Group first, export contract win for LED-based lighting on trams. Deliveries will commence imminently and will continue for at least eighteen months, with significant potential for further revenue in the longer term.

Further to the announcement in May, and as previously reported in the Interims Statement, the current financial year (Y/e 30 September 2019) remains as challenging as previously reported with continued customer delays to certain contracts, which the Board are of the view will now be shipped subsequent to the year end. These contracts have not been lost, but the sales will be delayed to later financial periods, negatively affecting the full year results.

However, the factory load for the new financial year commencing 1 October 2019 will benefit from these delays and the new contracts, so the prospects for the new financial year and the longer term are significantly improved, pointing to a strong recovery.

Peter Pollock, Chairman of LPA Group, commented:

"Order entry and prospects remain very strong, and whilst the continued delays to deliveries, moving them from the current period to next year, is disappointing, coupling this delayed output to the new contract wins will increase the factory load and accelerate recovery in the new financial year and secure the Group's position in the longer term. The cost structure has been adjusted reflecting the new reality and the Board looks forward with increasing confidence."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 
 Enquires:                              www.lpa-group.com       Tel: 
-------------------------------------  ---------------------   -------------- 
 
 LPA Group Plc 
 Peter Pollock                          Chairman                01799 512844 
 Paul Curtis                            COO                     01799 512858 
 Chris Buckenham                        CFO                     01799 512859 
 
 Cairn Financial Advisers               (Nominated Adviser)     020 7213 0880 
 James Caithie / Tony Rawlinson 
 finnCap                                (Broker)                020 7220 0500 
 Ed Frisby / Teddy Whiley (Corporate 
  Finance) 
  Tim Redfern / Malar Velaigam 
  (ECM & Sales) 
 
 Instinctif Partners                    (PR Adviser)            020 7457 2020 
 Rosie Driscoll / Christine 
  Galloway / 
  Mark Garraway 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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