LPA Group PLC Trading Update & Contract Wins (0413A)
24 May 2019 - 12:43AM
UK Regulatory
TIDMLPA
RNS Number : 0413A
LPA Group PLC
23 May 2019
LPA GROUP PLC
("LPA" or the "Group")
Trading Update & Contract Wins
LPA Group plc, the high reliability LED lighting and
electro-mechanical system manufacturer, announces the following
trading update.
Further to the AGM Statement on 21 March 2019, which stated that
the first half of the current financial year would be affected by
contract delays, the Group confirms that these delivery schedules,
which are outside of the Group's control, continue to be delayed,
largely as a result of corporate activity within customers' supply
chains. As a consequence, approximately GBP3 million of revenues
will be delayed beyond the Group's year end date of 30 September
2019, which will negatively affect the anticipated outturn for the
current financial year. It should be emphasised that none of these
contracts have been lost, they have simply been substantially
delayed and will be delivered in future periods.
LPA is however pleased to report that order entry continues at
very strong levels with the award of two significant contracts for
electro-mechanical solutions. The first is for the UK market valued
at GBP1.7 million, and the second is for export to the Far East and
is valued at GBP0.8 million, with further opportunities in the
pipeline. Deliveries are expected to commence at the end of this
financial year. The medium-term outlook for the Group remains very
positive.
In addition, in line with the High Court ruling in October 2018
requiring all UK companies to remove inequalities between men and
women in scheme benefits that arose under Guaranteed Minimum
Pensions (GMP), the surplus on the Group's defined benefit pension
scheme, which was GBP2.4m at 30 September 2018, will reduce by
GBP0.4m. This is a historical cost expected to be recognised in the
current financial year. Furthermore, the Chairman of the LPA
Industries Pension Trustees Ltd, which operates the defined benefit
scheme, has retired. This executive role will be discharged by
Peter Pollock, Group Chairman, until he retires in September 2021
and Mr Pollock will now remain Executive Group Chairman for the
duration. In addition, Chris Buckenham, Chief Financial Officer, is
appointed to the Trustee Board.
Peter Pollock, Chairman of LPA Group, commented:
"The Group is operating in interesting times for the industry,
and whilst the delay in the delivery of some contracts is
disappointing, order entry remains very strong and hence our
outlook in the medium term is robust. We are well-placed to meet
both the challenges and take advantage of the opportunities
available to the Group, as we continue to review our operations and
cost structure to ensure we remain competitive. The Board looks to
the future with confidence."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquires:
------------------------------------- ------------------- --------------
LPA Group Plc Tel:
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
WH Ireland Broker 0117 945 3472
Mike Coe / Chris Savidge
Instinctif Partners PR Adviser 020 7457 2020
Rosie Driscoll / Christine Galloway
/
Mark Garraway
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END
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