LPA Group hails stronger H2, to restore dividend

24th Oct 2023 12:58

(Sharecast News) - Electro-mechanical components manufacturer LPA Group said on Tuesday that it will restore its dividend, as it hailed a "stronger" second half, with both orders and revenue increasing.

LPA said revenues increased 11% year-on-year to £21.7m, while orders jumped 30% to £25.7m, resulting in a total order book of £31.6m at year-end.

"As previously reported in the interim results, management anticipated an increase in H2 activity to offset the challenges faced in H1. We delivered strong trading in H2, leading to an underlying position of breakeven for the full year," said LPA.

The AIM-listed group also expects there will be a positive exceptional fair value adjustment for the recent product line acquisition undertaken in March, which continues to trade strongly.

This is expected to result in a reported group pre-tax profit for the year of approximately £1.1m. LPA also confirmed its intention of restoring a dividend for the 2023 financial year and beyond.

Chief executive Paul Curtis said: "Whilst the last few years have seen the group face some of the toughest market conditions in its history, we are pleased to now be emerging from this. Although some market challenges still remain, we are confident in our strategy, capabilities and people.

"This, combined with our strong balance sheet and low gearing, provides us with many opportunities to shape and grow the group as we move forward. We therefore look forward to the coming years with enthusiasm and optimism."

As of 1255 BST, LPA shares were up 5.33% at 79.0p.

Reporting by Iain Gilbert at Sharecast.com