LPA Group's gallop continues thanks to LED lighting demand

"There is nothing to suggest that the year as a whole will not substantially exceed current market expectations," said chairman Michael Rusch, also revealing some details of the new contract.

LPA, which makes electronic and electromechanical systems for the transport industry, has won a £1.3m LED lighting contract with Japan's Kinki Sharyo as part of its deal to provide rolling stock on the Doha Metro in Qatar over the next three years.

LED lighting and engineered component distribution have enjoyed "particularly strong" start to the year, Rusch told attendees at the AIM-listed company's annual shareholder meeting.

Having reported in January that that the gallop had continued during the first quarter, Rusch confirmed "this pace has been maintained in the second quarter and there is no sign, as yet, of it letting up".

He questioned whether the pace could be sustained through the entire financial year to end-September, but said orders to the end of February had exceeded sales by 35%, and the forward order book for delivery over the next three years has grown to new record levels.

"We obviously need to urge a little caution, as we have been let down by external factors before, but on the basis of current levels of activity the first half looks like being a record for orders, sales and profits, exceeding our internal expectations by a substantial margin."

LPA, which will report interims in June, will also later this year move its lighting operations to a new location near to the current facility over several phases to minimise disruption.

Shares in the company were up 11.4% to 120.35p by half past noon on Monday, their highest level in almost two years.