15th Jun 2005 07:00
LPA Group PLC15 June 2005 NEWS RELEASE 15 JUNE 2005 INTERIM UNAUDITED GORUP RESULTS FO THE SIX MONTHS ENDED 1 APRIL 2005 LPA Group Plc, the electrical and electronic equipment manufacturer anddistributor, announces a pre tax profit fo £45,000 (2004: £39,000) for 1 April2005. Key Points 2005 2004 Turnover £6.6 £6.7 Profit before Tax £45,000 £39,000 Earnings per share- Basic 0.32p 0.28p- Diluted 0.32p 0.27p- Adjusted (before goodwill amortization) 0.74p 0.70p Dividends 0.15p 0.15p Gearing 67% 69% Strong Long Term Order Entry Order Book up 41% Tender and enquiry level for rail home and export markets remains high Gap in factory load will limit progress this year Operational efficiency improving Peter Pollock, Chief Executive, commented "After a good start, short term business went very flat in January and February.Unfortunately this has continued into the current quarter, which will limitprogress this year. As announced at the AGM in March, we continue to winsignificant long term rail contracts and our long term order book is at recordhigh levels, which bodes well for the future. We continue to develop ourrelationships with major customers in Europe and Asia and we are receiving highlevels of enquiries, which we hope will lead to significant future export ledgrowth. Prospects are exciting, though we face challenges in the short term. Our objectives remain to deliver shareholder value, to grow sales in both homeand export markets, and to improve operational performance and profitability." Enquiries: Peter Pollock Chief Executive 01799 512 844Stephen Brett Finance Director 01799 512 860James Glancy Teather & Greenwood Limited 020 7426 9010Robert Naylor Teather & Greenwood Limited 020 7426 3297 Interim Unaudited Group Results for the Six Months ended 1 April 2005 CHAIRMAN'S STATEMENT The Group has continued to trade profitably although progress has been limited.A profit before tax of £45,000 (2004: £39,000) was achieved for the six monthsto 1 April 2005, on a slightly reduced turnover of £6.6m (2004: £6.7m). Basicearnings per share progressed 14% to 0.32p per share (2004: 0.28p). The interimdividend has been maintained at 0.15p per share (2004: 0.15p) and will be paidon 30 September 2005 to shareholders registered at the close of business on 9September 2005. The order book has increased 41% since March last year. This does not includesignificant contracts for which we have been selected, but for which precisedetails have yet to be agreed. Much of the order book is long term and willbegin to be reflected in sales output during the second half of 2006 andthereafter. Major new contracts won by the Group have mainly related to the rail rollingstock sector, although some success has been enjoyed in aircraft support,aerospace and defence. Tendering activity continues at a high level for bothhome and export customers. Operational improvements have been achieved, and we have commenced procurementof tooling and components from low cost sources. Shareholders will be aware that there has been a slow down in UK manufacturingthis year and as a result we have continued to experience a lower level of shortterm orders than expected and a delay of certain contracts. The rail vehiclesector, which accounts for about 50% of the Group's activities, is experiencinga gap in short term demand which, coupled with the foregoing comments, willaffect the Group's performance this year. However, the long-term order book is very strong and prospects both in home andexport markets are most encouraging. Your management will continue to work hardto deliver those prospects. Michael RuschChairman15 June 2005 LPA GROUP PLC Interim Unaudited Group Results for the Six Months ended 1 April 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT 6 months to 6 months to Year to 1 April 2005 2 April 2004 30 Sept 2004 Unaudited Unaudited Audited £000's £000's £000's Turnover 6,614 6,740 13,540 Operating profit 143 136 337 Net interest payable (98) (97) (194) Profit on ordinary activities before taxation 45 39 143 Tax on profit on ordinary activities (10) (9) (4) Profit on ordinary activities after taxation 35 30 139 Dividends (16) (16) (49) Transfer to reserves 19 14 90 Earnings per shareBasic 0.32p 0.28p 1.27pDiluted 0.32p 0.27p 1.27pAdjusted (before amortisation of goodwill) 0.74p 0.70p 2.13p Dividend per share 0.15p 0.15p 0.45p LPA GROUP PLC Interim Unaudited Group Results for the Six Months ended 1 April 2005 CONSOLIDATED BALANCE SHEET As at As at As at 1 April 2005 2 April 2004 30 Sept 2004 Unaudited Unaudited Audited £000's £000's £000'sFixed assetsIntangible assets 1,374 1,467 1,420Tangible assets 2,331 2,539 2,388 3,705 4,006 3,808Current assetsStocks 2,398 2,386 2,491Debtors 3,172 2,871 2,806Cash at bank and in hand 2 3 3 5,572 5,260 5,300 Creditors: Amounts falling due within one year (3,817) (3,473) (3,460) Net current assets 1,755 1,787 1,840 Total assets less current liabilities 5,460 5,793 5,648 Creditors: Amounts falling due after more than one year (1,368) (1,795) (1,575) Provisions for liabilities and charges (5) (6) (5) Net assets 4,087 3,992 4,068 Capital and reservesCalled up share capital 1,090 1,090 1,090Share premium account 254 254 254Revaluation reserve 314 315 314Merger reserve 230 230 230Profit and loss account 2,199 2,103 2,180 Equity shareholders' funds 4,087 3,992 4,068 LPA GROUP PLC Interim Unaudited Group Results for the Six Months ended 1 April 2005 CONSOLIDATED CASH FLOW STATEMENT 6 months to 6 months to Year to 1 April 2005 2 April 2004 30 Sept 2004 Unaudited Unaudited Audited £000's £000's £000's Net cash inflow from operating activities 238 716 948Returns on investments and servicing of finance (93) (92) (183)Taxation - - -Capital expenditure (130) (109) (158)Equity dividends paid (33) (27) (43) Net cash (outflow) / inflow before financing (18) 488 564 Financing (222) (218) (441) (Decrease) / increase in cash (240) 270 123 RECONCILIATION OF OPERATING PROFIT TONET CASH INFLOW FROM OPERATING ACTIVITIES Operating profit 143 136 337Depreciation and amortisation 240 267 520Changes in working capital and other non cash items (145) 313 91 Net cash inflow from operating activities 238 716 948 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT (Decrease) / increase in cash in the period (240) 270 123Cash outflow from decrease in debt and lease financing 222 218 441 Change in debt resulting from cash flows (18) 488 564 New hire purchase agreements - - -Amortisation of loan costs (5) (5) (11) Movement in net debt in the period (23) 483 553 Opening net debt (2,697) (3,250) (3,250) Closing net debt (2,720) (2,767) (2,697) Notes: 1. The financial information contained in this interim statement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the full preceding year is based on the statutory accounts for the financial year ended 30 September 2004. Those accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies. 2. The calculation of earnings per share is based upon the profit after tax of £35,000 (2004: £30,000) and the weighted average number of ordinary shares in issue during the period of 10.903m (2004: 10.903m). The weighted average number of ordinary shares diluted for the effect of outstanding share options was 11.016m (2004: 10.958m). Adjusted earnings per share, which is disclosed to reflect the underlying performance of the Company, has been calculated on a profit of £81,000 (2004: £76,000) being the profit after tax before the amortisation of goodwill. 3. The interim financial information has been prepared on the basis of the accounting policies set out in the Group's statutory accounts for the year ended 30 September 2004. 4. All of the tax charge relates to liabilities within the UK. Note: Copies of this Interim Report are being sent to shareholders. Copies arealso available to the public from the Company's Registered Office, Tudor Works,Debden Road, Saffron Walden, Essex, CB11 4AN. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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