LPA : 2020 Annual Report and Accounts

Manufacturing the future

LPA Group

• • Is a market leading designer, manufacturer and supplier of high reliability LED lighting, electronic and electro-mechanical systems, and a distributor of engineered components

• • Employs 170 people at three locations in the UK

• • Is focussed on rail, aviation, defence, infrastructure and industrial markets

• • Has developed a successful export capability and global distribution network. Around a third of turnover is exported to over 50 countries

• • Is known for innovating cost-effective engineering solutions (in hostile and challenging applications) to improve product reliability, reduce maintenance and life cycle costs

• • Supplies to a wide range of leading organisations including: Airbus, Alstom Transportation, BAA, BAE Systems, Bombardier Transportation, CAF, Compin, CRRC, Downer, EDI, First Group, Heathrow Airport, Hitachi, ITW GSE, Kinki Sharyo, Knorr Bremse, Leonardo, London Underground, Shanghai Pudong Airport, Siemens, SNCF, Stadler, TRSC, Unipart Rail and Wabtec

LPA Group Plc

A brief history

Over 160 years of UK product design and manufacture.

The LPA Group consists of uniquely individual businesses, each offering product innovation, engineering design capabilities and market sector expertise.

www.lpa-group.com

3 brothers set up the company Simmonds Brothers Ltd

1861

Simmonds manufactured marquees, flooring and street furniture including chandeliers

1861

With the invention of the electric light, Simmonds started to design connectors to support this innovation

1898

Light and Power Accessories (LPA) was founded by the Lott family in East London

1908

Simmonds was awarded the contract to install the first ever street light in `Electric Avenue', Brixton

1908

Haswell continued to be at the forefront of sheet metal work fabrication. Invested in automation and equipment

Channel Electric was established to supply specialist electrical inter-connection equipment for Concord

1967

REM expanded into manufacturing and became a public but unquoted company

1967

the Ford Motor Co 2017

1980s

LPA acquired Niphan Ltd

1981

Channel became an approved supplier for many of the UK's military aerospace projects

1970s

Product innovation continued with Channel supplying high reliability relays to the rail sector

1994

Excil relocated to Normanton, Yorkshire. Product range expanded to security lighting and power supplies

2000 2014

Investing in electronics design expertise, LPA acquired Excil Electronics Ltd

2000

LPA designed and built the 'Crocodile cable carrier'. A new and innovative way of connecting power to aircraft

1985

2000s

LPA continued to expand its manufacturing capabilities by investing in new machinery and automation

2018

LPA was one of the first to supply LED lighting into train interiors - Warahta Sidney

2000s

LPA won a major contract to design, manufacture and supply robust electronic control boxes for a new train build project

2018

Product development investment in its new Plane Power aviation product range

2019

Awarded its first export contract to design, manufacture and supply advanced 'at seat' electronics system solution for rail

2020

LPA Group Plc - Annual Report & Accounts 2020

FINANCIAL HIGHLIGHTS

For the year ended 30 September 2020

2020	2019
£000	£000
ORDER ENTRY	21,863	27,006
REVENUE	20,711	19,533
UNDERLYING OPERATING PROFIT*	783	204
EXCEPTIONAL COSTS	(131)	(403)
PROFIT/(LOSS) BEFORE TAX	551	(237)
BASIC EARNINGS/(LOSS) PER SHARE	4.82p	(0.43p)
DIVIDENDS PER SHARE	nil	1.10p
GEARING - post IFRS 16 adoption	21.1%	-
- pre IFRS 16	19.6%	19.6%
*Underlying operating profit is stated before share-based payments and exceptional costs
Commentary

In common with our Customers and Suppliers, we have been affected by Covid-19. However, we follow Government guidelines closely, remain open for business, fully utilise the support available in the maintenance of our business and remain more fortunate than many. Thus far our team has suffered very few Covid-19 cases and no fatalities, and led by our Executive, has done a great job in difficult circumstances and delivered a result at least in line with expectations. Cash has been closely controlled and gearing remains unchanged.

However due to further Covid-19 developments, we consider it prudent not to declare a dividend for the Financial year 2020 but to review the situation at the half year announcement June 2021.

Though we were fully prepared for a no deal Brexit, we are delighted that a deal has been done, which will facilitate our continuing success in export markets within the EU and beyond. The Order Book has continued to grow and will be further boosted by very large project awards (subject to contract) during the first quarter, which, together with our strong balance sheet, gives us great confidence of further progress during the current year and in the longer term.

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