30th Jun 2016 09:35
LONDON (Alliance News) - LPA Group PLC on Thursday reported a large rise in pretax profit for the first half of its financial year, driven by stronger revenue and better margins thanks to operational improvements.
LPA, which makes LED lighting and electro-mechanical systems, said pretax profit for the half year to April 1 grew to GBP782,000, a massive rise on the GBP19,000 made a year before, as revenue increased to GBP10.5 million from GBP7.9 million.
The strength of trading drove a massive hike to the company's dividend, up 43% to 1.00 pence from 0.70p a year before.
The company's order intake in the half grew 31% year-on-year to GBP13.8 million, and LPA said its order book was at GBP22.0 million at the end of the half, with further orders due from contracts where the firm has been selected but timetables have not been finalised.
LPA said LED lighting was enjoying "boom conditions" in the rail market, complemented by the growth of USB charging outlets and ethernet backbone technology demand on trains.
"Orders entered, the order book, sales revenue and profits have all been at record levels and all have exceeded our internal expectations. All parts of our business contributed to this excellent result, but LED lighting and engineered component distribution have been particularly strong," said Chairman Michael Rusch.
Rusch acknowledged the run-up to the European Union referendum in the UK saw some caution emerge which disrupted order flows, but said the company's order book for the second half was robust, leaving LPA "cautiously optimistic" it can achieve a strong, "if not quite so spectacular" second half.
"The referendum result will set us new challenges, but our customers' requirements for best in class lighting and electro-mechanical systems will not change. We are in good shape and eagerly and confidently look forward to the future," Rusch added.
LPA shares were up 6.8% to 125.00p Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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