LPA Group confident after improved second half

25th Nov 2022 11:31

(Sharecast News) - Lighting and electronic systems specialist LPA Group confirmed in an update on Friday that its second half saw strong trading, as expected after its loss-making first half.

The AIM-traded firm said it would make a small trading loss for the year, but with the exceptional gain achieved through the disposal of unused land, it would report an overall profit before tax.

It said it was continuing to "transition" its business to broaden its product offering, global coverage, and the market sectors served.

"We still have a heavy dependency on projects but the foundations are being laid for more repeat routine product sales," the board said in its statement.

"In support of this, several key appointments have been made across the group, notably in sales and engineering.

"We are delighted to have appointed two new managing directors to lead our electro-mechanical and distribution businesses."

LPA said pressure from its supply chain remained, as inflation and other macroeconomic factors dominated the industry.

"Increased prices and long lead-times are impacting many of the products we supply, however, the impact on the business of these dynamics is being managed."

The company said its order book remained "high" at the end of the year to 30 September, at £28m.

Its directors said managing working capital was a key focus, with the cash from its land sale supporting a stronger balance sheet.

"Our strategy and direction is clear and, although we anticipate continued pressure from much of the above, we are making good progress towards re-balancing the business."

Reporting by Josh White for Sharecast.com.