TIDMLPA
RNS Number : 7086C
LPA Group PLC
30 June 2016
LPA GROUP PLC
Half-Yearly Report for the period to 1 April 2016
LPA Group PLC ("LPA" or "the Group"), the LED lighting and
electro-mechanical system manufacturer and distributor, announces a
very strong performance for the period to 1 April 2016.
KEY POINTS
-- Revenue increased 32.2% to GBP10.48m (2015: GBP7.93m)
-- Profit before tax substantially increased to GBP782,000 (2015: GBP19,000)
-- Diluted earnings per share substantially increased to 5.34p (2015: 0.13p)
-- Interim dividend increased 42.9% to 1.00p (2015: 0.70p)
-- Order entry increased 31.1% to GBP13.78m (2015: GBP10.51m)
-- Order book, for delivery over the next three years, stands at
GBP22m with further orders due from projects for which we have been
selected, but for which confirmed delivery schedules are not yet
available.
-- LED lighting enjoying boom conditions in rail; USB outlet
charging points for rail passengers, electro-mechanical Ethernet
backbone technology and Transport+ continue to excite major
interest.
Michael Rusch, Chairman, comments:
"In my report to the AGM on 21 March 2016 I confirmed that we
had entered the year at a gallop and I can now confirm that this
pace has been maintained throughout the first half, as is evidenced
by our results. Orders entered, the order book, sales revenue and
profits have all been at record levels and all have exceeded our
internal expectations.
"All parts of our business contributed to this excellent result,
but LED lighting and engineered component distribution have been
particularly strong.
"Anticipation of the Referendum appears to have affected routine
order entry and, given the result, customers may well remain
cautious in the near term. However, the order book for delivery in
the second half is very strong, particularly for LED lighting,
electro-mechanical products and Transport+, so we are cautiously
optimistic that a strong, but perhaps not quite so spectacular
second half, is achievable. The forward order book for delivery
over the next three years is at record levels, so our future looks
very promising.
"In April we acquired a 'new to us' facility for our LED
lighting business, 200 metres from our existing factory, in
Normanton, West Yorkshire. Having obtained planning permission, we
expect to enter into contracts for refurbishment and extension in
the next few weeks and to relocate the business to the new facility
before the end of the calendar year.
"As a measure of our confidence, the interim dividend has been
increased 42.9% to 1.00p. The Referendum result will set us new
challenges, but our customers' requirements for best in class
lighting and electro-mechanical systems will not change. We are in
good shape and eagerly and confidently look forward to the
future."
30 June 2016
ENQUIRIES:
LPA Group plc
Peter Pollock, Chief Executive Tel: 07881 626123 or 01799
512844
Steve Brett, Finance Director Tel: 07881 626127 or 01799
512860
Cairn Financial (Nominated Adviser) Tel: 020 7148 7900
James Caithie / Tony Rawlinson
WH Ireland (Broker) Tel: 0113 394 6611
Tim Feather / Liam Gribben
Instinctif Partners (PR Adviser) Tel: 020 7457 2020
Mark Garraway / Helen Tarbet
CHAIRMAN'S STATEMENT
In my comments to the Annual General Meeting on 21 March 2016 I
confirmed that we had entered the year at a gallop and I am
delighted to say that these conditions continued throughout the
first half delivering record results on all measures. Revenue
increased 32.2% to a record GBP10.48m (2015: GBP7.93m) generating a
record profit before tax of GBP782,000 (2015: GBP19,000) and record
diluted earnings per share for the half year of 5.34p (2015:
0.13p).
Order entry in the first half increased 31.1% to GBP13.78m
(2015: GBP10.51m) and the order book at the end of the period was
GBP21.99m (2015: GBP10.77m), 17.7% higher than the GBP18.69m at
September 2015. I have previously reported that we have been
selected for a number of projects, where confirmed delivery
schedules are not yet available and these future orders are not
recognised or included either in order entry in the period or the
order book. These un-entered project orders amount to approximately
GBP4.4m. This knowledge underpins our confidence in future
progress.
LED lighting and engineered component distribution had a stellar
first half to the year. Electro-mechanical, and in particular our
"on train" installation service Transport+, together with LED
lighting are expected to do well in the second half.
In April the Group acquired a "new to us" facility 200 metres
from our existing LED lighting factory at Normanton in West
Yorkshire which, when an extension necessary to accommodate our
engineering and design capability has been completed, will provide
approximately 50% of much needed additional capacity over and above
that which we currently have. Having achieved Planning Permission
contracts for the refurbishment and extension will be signed
shortly and we expect to complete the relocation by the end of the
calendar year. The existing premises are under offer and will be
sold in due course.
Uncertainty ahead of the Referendum dampened demand during April
and May. Now the result is known, we hope that deferred decisions
on some significant orders will be made favourably towards us. The
Referendum result will no doubt cause continuing uncertainty, but
the UK Government's commitment to improvement and expansion of the
rail network and our exposure to export markets in Europe, Middle
East and Asia and Australasia puts us in a good space.
Current orders underpin the situation for the next three years.
Interest in our LED lighting, ethernet backbone technology,
seatback USB charging outlets and Transport+ has been buoyant.
In addition to the positive outlook in the UK market, the export
market also looks very promising with further major opportunities
currently being pursued and secured, in Europe, Asia and
Australasia. Once the Gulf Area recovers from the oil shock we
anticipate this also becoming an important market for our
products.
Cash flow has been increasingly positive. As an indication of
our confidence in the future, the interim dividend is being
increased 42.9% to 1.00p (2015 0.70p) and will be paid on 16
September 2016 to shareholders registered at the close of business
on 26 August 2016.
We expect to make good, but not spectacular, progress during the
remainder of the year. In the longer term this progress should be
maintained as the major projects with which we are engaged continue
through the period 2017-19. The Group is well positioned to win
further orders for rail vehicle equipment on established platforms
in both the UK and export markets. The factory load for the
remainder of the year and in the longer term up to 2019 is very
encouraging.
MICHAEL RUSCH
Chairman
30 June 2016
LPA GROUP PLC
Interim Unaudited Group Results for the Period ended 1 April
2016
CONSOLIDATED INCOME STATEMENT
Period 6 months Year to
to to 30 Sept
1 April 4 April 2015
2016 2015 Audited
Unaudited Unaudited GBP000's
GBP000's GBP000's
Revenue 10,483 7,928 16,265
=========== =========== ==========
Operating profit before
exceptional items 782 45 291
Gain on property disposal 14 - 587
Reorganisation costs - (6) (42)
Operating profit 796 39 836
Finance costs (40) (35) (75)
Finance income 26 15 32
Profit before tax 782 19 793
Taxation (100) (2) (99)
Profit for the period 682 17 694
=========== =========== ==========
Attributable to:
- Equity holders of the
parent 682 17 694
=========== =========== ==========
Earnings per share (see
note 2)
- Basic 5.75p 0.14p 5.86p
- Diluted 5.34p 0.13p 5.48p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Period 6 months Year to
to to 30 Sept
1 April 4 April 2015
2016 2015 Audited
Unaudited Unaudited GBP000's
GBP000's GBP000's
Profit for the period 682 17 694
----------- ----------- ----------
Other comprehensive income
/ (expense)
Items that will not be reclassified
to profit or loss
Actuarial gain / (loss) on
pension scheme 64 (114) 503
Tax on actuarial gain / (loss) (23) 13 (121)
Other comprehensive income
/ (expense) net of tax 41 (101) 382
----------- ----------- ----------
Total comprehensive income
/ (expense) for the period 723 (84) 1,076
=========== =========== ==========
Attributable to:
- Equity holders of the parent 723 (84) 1,076
=========== =========== ==========
LPA GROUP PLC
Interim Unaudited Group Results for the Period ended 1 April
2016
CONSOLIDATED BALANCE SHEET
As at As at As at
1 April 4 April 30 Sept
2016 2015 2015
Unaudited Unaudited Audited
GBP000's GBP000's GBP000's
Non-current assets
Intangible assets 1,204 1,237 1,222
Property, plant and equipment 4,722 4,810 4,721
Retirement benefits 1,519 695 1,379
7,445 6,742 7,322
----------- ----------- ----------
Current assets
Inventories 2,866 2,396 2,658
Trade and other receivables 4,502 3,291 4,101
Cash and cash equivalents 4 5 5
----------- ----------- ----------
7,372 5,692 6,764
----------- ----------- ----------
Total assets 14,817 12,434 14,086
Current liabilities
Bank overdraft (384) (65) (938)
Bank loans and other borrowings (246) (236) (236)
Provisions - (341) -
Current tax payable (134) - (30)
Trade and other payables (3,582) (3,046) (2,977)
(4,346) (3,688) (4,181)
----------- ----------- ----------
Non-current liabilities
Bank loans and other borrowings (1,471) (1,666) (1,548)
Deferred tax liabilities (369) (149) (350)
Other payables (20) (21) (20)
----------- ----------- ----------
(1,860) (1,836) (1,918)
----------- ----------- ----------
Total liabilities (6,206) (5,524) (6,099)
----------- ----------- ----------
Net assets 8,611 6,910 7,987
=========== =========== ==========
Equity
Share capital 1,189 1,185 1,185
Share premium account 480 464 464
Un-issued shares reserve 191 197 197
Merger reserve 230 230 230
Retained earnings 6,521 4,834 5,911
Equity attributable to shareholders
of the parent 8,611 6,910 7,987
=========== =========== ==========
LPA GROUP PLC
Interim Unaudited Group Results for the Period ended 1 April
2016
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Period 6 months Year to
to to 30 Sept
1 April 4 April 2015
2016 2015 Audited
Unaudited Unaudited GBP000's
GBP000's GBP000's
Opening equity 7,987 7,085 7,085
Total comprehensive income 723 (84) 1,076
Transactions with owners:
Dividends (119) (101) (184)
Proceeds from issue of shares 20 4 4
Equity-settled share-based
payments - 6 6
Closing equity 8,611 6,910 7,987
=========== =========== ==========
LPA GROUP PLC
Interim Unaudited Group Results for the Period ended 1 April
2016
CONSOLIDATED CASH FLOW STATEMENT
Period 6 months Year to
to to 30 Sept
1 April 4 April 2015
2016 2015 Audited
Unaudited Unaudited GBP000's
GBP000's GBP000's
Profit for the period 682 17 694
Finance costs 40 35 75
Finance income (26) (15) (32)
Income tax expense 100 2 99
----------- ----------- ----------
Operating profit 796 39 836
Adjustments for:
Depreciation 224 209 440
Amortisation of intangible
assets 19 17 58
(Gain) on sale of property,
plant and equipment (14) (30) (43)
Non-cash charge for equity-settled
share-based payments - 6 6
1,025 241 1,297
Movements in working capital:
Change in inventories (208) (251) (513)
Change in trade and other
receivables (1,036) 182 (628)
Change in trade and other
payables 617 (133) (203)
Change in provisions - (226) (567)
----------- ----------- ----------
Cash generated from operations 398 (187) (614)
Retirement benefits (50) (50) (100)
----------- ----------- ----------
Net cash from operating activities 348 (237) (714)
----------- ----------- ----------
Purchase of property, plant
and equipment (174) (145) (287)
Proceeds from sale of property,
plant and equipment 637 65 78
Capitalised development expenditure (1) (19) (45)
Net cash from investing activities 462 (99) (254)
----------- ----------- ----------
Repayment of bank loans (100) (100) (200)
Repayment of obligations under
finance leases (18) (17) (35)
Interest paid (40) (35) (75)
Proceeds from issue of share
capital 20 4 4
Dividends paid (119) (101) (184)
----------- ----------- ----------
Net cash from financing activities (257) (249) (490)
----------- ----------- ----------
Net increase / (decrease)
in cash and cash equivalents 553 (585) (1,458)
Cash and cash equivalents
at start of the period (933) 525 525
----------- ----------- ----------
Cash and cash equivalents
at end of the period (380) (60) (933)
=========== =========== ==========
As at As at As at
1 April 4 April 30 Sept
2016 2015 2015
Reconciliation of cash and Unaudited Unaudited Audited
cash equivalents GBP000's GBP000's GBP000's
Cash and cash equivalents
in current assets 4 5 5
Bank overdraft in current
liabilities (384) (65) (938)
----------- ----------- ----------
Cash and cash equivalents
at end of the period (380) (60) (933)
=========== =========== ==========
NOTES
1 - BASIS OF PREPARATION
These interim consolidated financial statements are for the
period ended 1 April 2016. They do not include all of 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 2015.
They have been prepared in accordance with International
Financial Reporting Standards as adopted by the EU and applicable
law (IFRS) and in accordance with the provisions of the Companies
Act 2006 applicable to companies applying IFRS. These financial
statements have been prepared under the historical cost convention
with the exception of certain items which are measured at fair
value.
These consolidated 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 2015.
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 ended 30 September 2016.
2 - EARNINGS PER SHARE
The calculations of earnings per share are based upon the profit
after tax attributable to ordinary equity shareholders and the
weighted average number of ordinary shares in issue during the
period. Details are as follows:
Period 6 months Year to
to to 30 Sept
1 April 4 April 2015
2016 2015 Audited
Unaudited Unaudited
Profit for the period -
GBP000's 682 17 694
----------- ----------- ----------
Weighted average number
of ordinary shares in issue
during the period 11.856m 11.844m 11.846m
Dilutive effect of share
options 0.924m 0.822m 0.818m
----------- ----------- ----------
Number of shares for diluted
earnings per share 12.780m 12.666m 12.664m
----------- ----------- ----------
Basic earnings per share 5.75p 0.14p 5.86p
Diluted earnings per share 5.34p 0.13p 5.48p
3 - ANALYSIS OF NET DEBT
Finance Cash and
Bank loan lease cash equivalents Net debt
GBP000's obligations GBP000's GBP000's
GBP000's
At 1 October 2015 1,700 84 933 2,717
Cash generated - - (671) (671)
New finance lease
obligations 51 - 51
Repayment of borrowings (100) (18) 118 -
At 1 April 2016 1,600 117 380 2,097
============ ============= ================== ===========
4 - INFORMATION
LPA Group plc is the Group's ultimate parent company. It is
incorporated in England and Wales and domiciled in Great Britain.
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, Essex, CB11 3AQ. 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 (GBP'000), which is also the
functional currency of the parent company. These consolidated
interim financial statements have been approved for issue by the
Board of Directors on 30 June 2016.
The financial information for the year ended 30 September 2015
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 2015 have been filed with the Registrar of Companies. The
auditor's report on those financial statements was unqualified and
did not contain statements under Section 498(2) or Section 498(3)
of the Companies Act 2006.
Summarised copies of this Interim Report are being sent to
shareholders. Copies are also available from the Company's
registered office at the above address and will be made available
on the Company's website (www.lpa-group.com).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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