LPA Group plc, the innovation-led engineering specialist in electronic and electro-mechanical components and systems, provides a trading update for the current financial year ending 30 September 2025, and provides details of a property disposal. The Company now has reduced revenue and earnings expectations which can be attributed to lower sales at Martek Power, and to the customer led delayed delivery of an aerospace contract. These events have resulted in changes to management expectations as follows.
For the current financial year ending 30 September 2025, full year Group revenues are expected to reduce by c.£3.0m to c.£21.5m. This would result in full year adjusted PBT reducing to a loss of c.£1.3m.
2025 Reported PBT of c.£0.5m loss remains in line with previous expectations due to various exceptional income: negative goodwill on the Martek acquisition and, profit on sale of property details of which are provided below.
For the financial year ending 30 September 2026, revenues are expected to reduce slightly by c.£1.5m to c.£27m. However, because of our accelerated organisational restructuring, earnings expectations for adjusted PBT of £0.6m are maintained.
As previously communicated, we have had an extremely strong order intake this financial year to date, of c.£27m, which gives us a solid foundation for our future growth plans.
Property Disposal
The Company is pleased to announce the sale of freehold premises in Thatcham, Berkshire, having exchanged on 25 September 2025 and completion expected during 26 September 2025. The consideration payable at completion is £355,000 and the cash proceeds will be used to reduce net debt. Net book value was c.£86,000 as at 31 March 2025. Previous LPA operations at these premises have been relocated to other existing LPA sites, with the addition of a smaller leased office in the area. The profit on disposal net of sale costs is expected to be recognised as exceptional income in the current year’s results, as referred to above.
Robert B Horvath, Chairman of LPA Group, commented:
“Our strong order intake of £27m for this financial year underpins our ability to deliver on our future growth plans and further endorses our strategic decision to accelerate the restructuring of the organisation into ‘One LPA’. The restructuring of LPA is near to completion, and I am confident that we are already seeing the business benefits.
It is widely acknowledged that UK manufacturing output has contracted over the last three months and is attributed to global issues including US import tariffs and domestic uncertainty around economic and government policies. It is fair to assume we are not immune from this as we are an integral part of the supply chains of large manufacturing organisations. However, we have seen a more positive output in September.”
LPA Group plc (AIM: LPA) is an innovation-led engineering specialist in electronic and electro-mechanical components and systems.
Focused on transport (rail and aviation), aerospace, defence, infrastructure and industrial markets and supplying into hostile and challenging environments, LPA is known for engineering solutions to improve product reliability, reducing maintenance and life cycle costs.
The Group has four sites across the UK, selling to customers in the UK and overseas. Three of these are design and manufacturing sites: Saffron Walden, Essex – electro-mechanical systems for rail, aviation and industrial; Knapwell, Cambridge – power supplies for the rail market, Normanton, Yorkshire – LED lighting and electronic systems for rail and infrastructure. The fourth site is Thatcham, Berkshire – value-added distribution of engineered components for rail, aerospace and defence.
With over 150 years of UK design and manufacture, and with origins in the first ever light installed in ‘Electric Avenue’, Brixton; innovation is core to LPA and to the products and services supplied to our customers worldwide.
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