LPA : 2022 Annual Report and Accounts

STRATEGIC REPORT | CHAIRMAN'S STATEMENT

LPA GROUP PLC

Annual Report & Accounts 2022

ANNUAL REPORT & ACCOUNTS 2022

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LPA Group Plc

Manufacturing the future

LPA GROUP

Is a market leading designer, manufacturer and supplier of high reliability LED lighting, electronic and electromechanical systems, and a distributor of engineered components

Employs approximately 140 people at three locations in the UK

Is focused 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 Alstom, Avanti, BAA, BAE Systems, CAF, Compin, CRRC, Downer EDI, First Group, Grammer, Heathrow Airport, Hitachi, ITW GSE, Kinki Sharyo, Knorr Bremse, Leonardo, Omer, Shanghai Pudong Airport, Siemens, SNCF, Stadler, Spirit Aerospace, Taiwan Rolling Stock Company, Transport for London, Unipart Rail and Wabtec

2	ANNUAL REPORT & ACCOUNTS 2022

Financial & Operational Highlights

For the Year ended 30 September 2022

	2022	2021
	£000	£000
Order Entry	19,689	23,163
Order Book	27,762	27,350
Revenue	19,325	18,265
Underlying Operating (Loss)*	(226)	(274)
Share Based Payments & Exceptional Items	1,310	(74)
Profit/(Loss) before Tax	1,074	(387)
Basic Earnings/(Loss) Per Share	8.99p	(0.17)p
Gearing**	3.5%	11.9%

• Operating Profit/(Loss) before Share Based Payments and Exceptional Items
  ** Net Debt as a % of Total Equity

Through the year to 30 September 2022, the year included the following highlights and operational developments:

Record year for our new LED tube product with significant orders from UK and worldwide customers. This is an important step as we approach the September 2023 ban across the EU on the sale of old technology fluorescent tubes.

Excellent year for new Plane Power range of products with customers now including - Heathrow, Shanghai, Beijing, Copenhagen, Melbourne, Auckland, Stockholm and Schiphol airports.

Appointment of first employee outside of the UK in support of growth plans for the DACH region. This is an essential resource in support of some of the biggest rolling stock customers in the world.

Continued growth of distribution network to support growth plans for both our electronic / lighting, and electromechanical business divisions.

Successful delivery of the Viaggio Nightjet / ÖBB project, which is the most technically advanced intelligent lighting system ever undertaken by the Group. This is a flagship platform for the customer with further follow-on orders expected.

ANNUAL REPORT & ACCOUNTS 2022

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Contents

FINANCIAL & OPERATIONAL HIGHLIGHTS	1
STRATEGIC REPORT	5
Chairman's Statement	5
Business Model and Strategy	8
Environmental, Social and Governance	10
Chief Executive Officer's Review	12
Financial Review	14
Principal Risks and Uncertainties	18
Key Performance Indicators	20
BOARD REPORTS	21
Audit Committee Report	22
Remuneration Report	23
Corporate Governance Report	26
Directors' Report	33
COMPANY INFORMATION	37
GROUP FINANCIAL STATEMENTS	41
Independent Auditor's Report to the Members of LPA Group plc	42
Consolidated Income Statement	50
Consolidated Statement of Comprehensive Income	51
Consolidated Balance Sheet	52
Consolidated Statement of Changes in Equity	53
Consolidated Cash Flow Statement	54
Notes to the Financial Statements	56
COMPANY FINANCIAL STATEMENTS	89
Company Balance Sheet	90
Company Statement of Changes in Equity	91
Company Notes to the Financial Statements	92
OTHER INFORMATION	99
NOTICE OF MEETING	102
FORM OF PROXY	107

ANNUAL REPORT & ACCOUNTS 2022

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