LPA Group sees 'record' sales and nets £4m contract

LPA Group, the LED lighting and electro-mechanical system manufacturer and distributor, generated record annual sales despite a reduction in final-quarter activity due to delays in a contract with CrossRail.

Trading for the year ended 30 September is expected to be in line with expectations following the “exceptionally strong” showing, the AIM-listed company said.

The new year has started well, helped by the winning of a £4m contract to upgrade lighting on London's Central and Waterloo & City line trains. The contract will run through to 2023, with an ongoing through-life support contract to 2043.

Peter Pollock, chairman of LPA, said: "After a blockbuster year of record output, despite contract delays, we face the future with a reinvigorated board and a refreshed team in place. The rail market remains very buoyant, with huge commitments by government attracting massive inward investment from multinational companies establishing new rail vehicle assembly facilities in the UK."

There are hopes for is a new range of aircraft ground power supply products and bids on a number of rail projects, while the aviation, defence and railway arm finished the year “at a gallop” with a record order book.

"We have invested heavily in new capacity, automated stores systems, robotic welding, and process robots to improve productivity and to reduce costs so that we can remain competitive in a challenging environment. As has been widely reported, current political uncertainty around Brexit adds a potential challenge and we are progressing our contingency plans," said Pollock.

LPA Group’s shares were up 1.89% at 108.00p at 0914 GMT.