TIDMLPA
RNS Number : 0469F
LPA Group PLC
12 November 2020
LPA GROUP PLC
("LPA", the "Company" or the "Group")
Trading update
LPA Group Plc, the high reliability LED lighting and
electro-mechanical system manufacturer, is pleased to provide an
update on trading and Covid-19 measures taken.
On 18 March 2020, ahead of our AGM, we announced that while we
were yet to experience any undue impact from Covid-19, markets such
as aerospace and transport were expected to be disrupted as we
moved forward. Anticipating lockdown, which in the UK came into
force later that week, we implemented a pandemic action plan taking
all practical precautions, focusing on cash retention and
maintaining profitability whilst ensuring all of our sites remained
open for business. Actions included suspension of our dividend
policy, utilisation of the UK Government's VAT deferment to 2021
and, offered by our bank, a precautionary deferral of two quarters'
capital loan repayments.
Our sites implemented working practices in line with Government
Covid-19 guidelines, home and flexible working was put in place,
where appropriate, and support for our shielding and isolating
staff. The UK Covid Job Retention Scheme (CJRS) has been used
across the Group and, following a review of our cost base, we have
driven through further efficiencies, which, combined with some
trading downturn, particularly within aerospace, has released c.11%
of the workforce through a restructuring programme, completed ahead
of our September 2020 financial year end. Activity in the second
half of FY20 slowed slightly as some customers temporarily closed
sites due to worldwide lockdown restrictions. However, whilst
activity has since increased, we are still experiencing slower than
normal revenues in some parts of the Group, particularly around the
aviation sector.
Despite these challenges, we are pleased to report that (subject
to audit) we traded profitably throughout H2, delivering
satisfactory results, progression from the previous year, with
improved profit before tax for the second half of the financial
year ended 30 September 2020 vs H1 2020. Cash generation was
achieved in the second half of the financial year with net debt as
at 30 September 2020 broadly unchanged from 2019.
The new financial year has seen notable activity with two
(subject to contract) substantial project awards announced on 15
and 19 October 2020, following a predictable H2 2020 slow down on
order intake.
Brexit has been assessed and it is not envisaged that any
significant or lasting issues to the business will be felt from 1
January 2021.
The Company is now pleased to reintroduce market guidance, with
management expectations for the current year FY21 ahead of FY20,
underpinning our cautious optimism and it is planned to
re-introduce our dividend policy for 2021.
Paul Curtis - CEO commented:
"Covid-19 has made the second half of the year challenging and
hard work for us all, but despite this we have managed to report
profits in each month, and we finish the year with confidence. We
are extremely proud of our staff and would like to thank them for
their dedication throughout this time, and especially to those who
agreed to furlough leave or unfortunately have now departed the
Group.
We are delighted with the new contract awards announced in
October 2020, which are testament to the service and quality
offered by the Group. LPA Connection Systems has made a promising
start to the new financial year and LPA Lighting Systems are
expected to benefit from a strong order book, and recent contract
awards. We expect progression in FY21 but remain cautious."
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 07881 626123
Paul Curtis CEO 01799 512858
Chris Buckenham CFO 01799 512859
Cairn Financial Advisers (Nominated Adviser) 020 7213 0880
James Caithie / Liam Murray
Ludovico Lazzaretti
finnCap (Broker) 020 7220 0500
Ed Frisby / Teddy Whiley (Corporate
Finance)
Tim Redfern / Tim Harper (ECM
& Sales)
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements re ect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
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