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LPA Group trading in line, but warns of looming coronavirus impact
18th Mar 2020 15:38
(Sharecast News) - LPA Group said its current trading was in line with expectations on Wednesday, and it had not as yet experienced "any undue impact" from the Covid-19 coronavirus pandemic.
The AIM-traded LED lighting and electrical connector company did caution, however, that many of its customers and end markets such as aerospace and transport were now, or were expected to be, negatively impacted by the virus, either directly or as a result of problems in the supply chain.
As a result, it said it did expect its business to be impacted "to some degree" in the second half of the year, with the board planning action to mitigate the impact.
"At this stage it is too soon to quantify the extent to which our financial performance may be impaired, however, given the scale of the global financial crisis in response to the potential impact of Covid-19 on economic activity, we feel it is prudent to suspend payment of the final dividend, conserving cash resource as a precaution," the directors said in their statement.
"Therefore, the resolution to declare the 2019 final dividend will not be proposed at the annual general meeting to be held on 18 March."
LPA said it expected to restore payment of a dividend as soon as confidence returned to the global economy, and the outlook for its business was clear.
Additionally, it said its board president Michael Rusch would retire on 19 June after 55 years of "invaluable service" to LPA and its forebears.
Gordon Wakeford, formerly the chief executive officer of Siemens Mobility UK, would join the board as a non-executive director with effect from 1 April.
Paul Curtis, currently the company's chief operating officer, would become chief executive officer with effect from 1 April.
LPA added that Jonathan Rowe had joined the group as the managing director of LPA Connection Systems, and would join the group's executive committee.
At 1306 GMT, shares in LPA Group were down 13.9% at 70.6p.
The AIM-traded LED lighting and electrical connector company did caution, however, that many of its customers and end markets such as aerospace and transport were now, or were expected to be, negatively impacted by the virus, either directly or as a result of problems in the supply chain.
As a result, it said it did expect its business to be impacted "to some degree" in the second half of the year, with the board planning action to mitigate the impact.
"At this stage it is too soon to quantify the extent to which our financial performance may be impaired, however, given the scale of the global financial crisis in response to the potential impact of Covid-19 on economic activity, we feel it is prudent to suspend payment of the final dividend, conserving cash resource as a precaution," the directors said in their statement.
"Therefore, the resolution to declare the 2019 final dividend will not be proposed at the annual general meeting to be held on 18 March."
LPA said it expected to restore payment of a dividend as soon as confidence returned to the global economy, and the outlook for its business was clear.
Additionally, it said its board president Michael Rusch would retire on 19 June after 55 years of "invaluable service" to LPA and its forebears.
Gordon Wakeford, formerly the chief executive officer of Siemens Mobility UK, would join the board as a non-executive director with effect from 1 April.
Paul Curtis, currently the company's chief operating officer, would become chief executive officer with effect from 1 April.
LPA added that Jonathan Rowe had joined the group as the managing director of LPA Connection Systems, and would join the group's executive committee.
At 1306 GMT, shares in LPA Group were down 13.9% at 70.6p.