LPA Group reports progress on aftercare and transport strategy

The AIM-traded firm, which was holding its annual general meeting, said its connection systems manufacturing facility in Saffron Walden would focus on the rail market both domestically and overseas.

It said that, with a number of countries requiring extended lives for rolling stock, the facility was planning to manufacture products to support that, which would provide a base level of productivity to secure the facility's future.

The company’s management would also develop other products to further expand the facility's operations.

LPA said its Yorkshire-based lighting and electronic systems business had seen increased levels of enquiries, as the team resumed face-to-face engagement with customers.

Two major new-build rail projects had now passed their development stage, and been technically approved.

The group said it was ready to start manufacturing once clients gave the go-ahead.

LPA noted that it had also welcomed a new managing director of Channel Electric, who joined at a time when the company had seen a substantial increase in activity, which would create opportunities later in the year.

In addition, the group's aviation product range continued to grow in line with plan, providing an opportunity for brand development overseas.

LPA said its order book had increased to a new high of £34m following a contract win on 15 February.

“Trading is in line with expectations and we anticipate a return to full year profitability this year, notwithstanding the difficult trading period in the first six months of the year,” said chairman Robert Hovarth.

“The board is confident of the future outlook and it anticipates the restoration of a modest dividend in the latter half of 2023, recognising that the strength of our recovery will be more apparent as we enter the next financial year.”

At 1929 GMT, shares in LPA Group were down 1.08% at 82.6p.

Reporting by Josh White for Sharecast.com.