21st Jun 2018 08:15
LONDON (Alliance News) - LPA Group PLC on Thursday said profit rose moderately in the first half of its current financial year, but its order book has declined since the start of the second half.
Shares in LPA opened 12% lower on the news Thursday at 142.00 pence each.
The electronic connector manufacturing company reported pretax profit of GBP987,000 for the six months to the end of March, up 1.1% from GBP976,000 made in the same period a year earlier.
Revenue was 29% higher year-on-year at GBP13.9 million compared to GBP10.8 million. The result was driven by the company's "exceptionally" strong order book at the start of the year, LPA said.
However, over the course of the first half, the order book shrank, to GBP16 million on March 31 from GBP21.6 million at the end of September.
LPA lifted its interim dividend to 1.10 pence per share from 1.05p paid the prior year.
Looking ahead, the company said it has invested GBP1.0 million in processes and automation to reduce manufacturing costs. What's more, it has invested in new products development and in opening new markets.
However, LPA warned on potential challenges ahead, as its order book is declining.
"I am pleased to report that operating profits have been at record levels and that this performance is continuing during the third quarter and should result in an outstanding result for the year," said Chairman Michael Rusch.
"All parts of the group are performing well," Rusch added. "However, as previously reported, the medium term maybe more challenging."
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