LPA Group PLC Final Results (7773U)

TIDMLPA

RNS Number : 7773U

LPA Group PLC

23 January 2017

LPA GROUP PLC

Preliminary results for the year ended 30 September 2016

LPA Group plc ("LPA" or the "Group"), the LED lighting and electro-mechanical system manufacturer and distributor, announces record results for the year ended 30 September 2016 and continuing strong performance in the start to the current financial year.

KEY POINTS

   --              Sales up 31.7% at GBP21.42m (2015: GBP16.27m) 
   --              Operating profit before exceptional items up 427% at GBP1.533m (2015: GBP291,000) 
   --              Exceptional gain GBP14,000 (2015: GBP545,000) 

-- Profit before tax GBP1.516m (2015: GBP793,000, including exceptional gain of GBP545,000)

   --              Basic earnings per share 12.30p (2015: 5.86p) 
   --              Gearing 29.2% (2015: 34.0%) 
   --              Order entry GBP20.69m (2015: GBP26.77m) 
   --              Order book GBP17.96m (2015: GBP18.69m) 
   --              Group has achieved a step-change in performance and is moving onto a new level 
   --              Group continues to benefit from buoyant UK rail sector and export markets 

-- Ethernet backbone technology and USB charging sockets continuing to generate great interest for both new build and retrofit applications

   --              New LED lighting facility nearing completion for occupation first quarter 2017 

-- Final dividend increased 50% to 1.50p (2015: 1.00p), total for the year 2.50p (2015: 1.70p)

Peter Pollock, Chief Executive, comments:

"The financial year ended 30 September 2016 marked a step change in the performance of the Group, which is becoming established at this new substantially increased level of activity. Having 'galloped' up to a new level, we are now 'moving on'.

"Profits would have been even higher but for an oil and gas sector customer being placed into administration after the year end, and a consequent provision of GBP124,000 being made against the results for the year. The customer's business was subsequently sold to a third party and trading is expected to resume in due course.

"After very strong order entry in the first half, the uncertainty of Brexit made customers relatively cautious in placing orders during the period from April to August, since when the high levels of order entry have resumed.

"Sales and orders in the first quarter are ahead of last year confirming the continuing growth potential of the business.

"We look forward to continuing progress this year and for the future."

23 January 2017

ENQUIRIES:

LPA Group plc

Peter Pollock, Chief Executive Tel: [phone] or 01799 512844

Steve Brett, Finance Director Tel: [phone] or 01799 512860

   Cairn Financial Advisers (Nominated Adviser)            Tel: [phone] 

James Caithie / Tony Rawlinson

   WH Ireland (Broker)                                                   Tel: [phone] 

Tim Feather / Ed Allsopp

   Instinctif Partners (PR Adviser)                                 Tel: [phone] 

Mark Garraway / Helen Tarbet

Chairman's Statement

Overview

As I previously advised, the year to 30 September 2016 started at a gallop, which was sustained throughout the year. I am delighted to report that this progress continued during the first quarter of the current year, with excellent levels of output and order entry continuing. The Group appears to have established itself on a new trading level, which it now takes in its stride, so describing current progress as 'galloping' is perhaps no longer appropriate. We are moving on.

Sales for the year were GBP21.42m (2015: GBP16.27m), up 31.7%, and operating profit before exceptional items was GBP1.533m (2015: GBP291,000), up 427%. The halves were broadly similar although the second half would have been stronger but for one of our oil and gas sector customers being placed in administration, the impact of which reduced profits by GBP124,000. Nevertheless sales and profits for the year comfortably exceeded anything the Group has previously achieved.

Profit before tax for the year, after an exceptional gain of GBP14,000, amounted to GBP1.516m (2015: GBP793,000, including a net exceptional gain of GBP545,000) and basic earnings per share for the year were 12.30p (2015: 5.86p). Gearing was 29.2% (2015: 34.0%).

Order entry, which, as previously reported, appeared to have been affected during the summer by the uncertainty over Brexit, amounted to GBP20.69m (2015: GBP26.77m). Order entry during the first few months of the new financial year appears to have recovered to pre-Brexit levels. The Group continues to be selected for new rail project work, the delivery of which has yet to be fully defined and therefore is not included in the order book. The order book at the year-end amounted to GBP17.96m (2015: GBP18.69m).

Dividends

The interim dividend was increased to 1.00p (2015: 0.70p). As a consequence of the continuing improved trading performance and our confidence in the future, and subject to shareholder approval at the forthcoming annual general meeting - to be held this year at the offices of Instinctif Partners, 65 Gresham Street, London EC2V 7NQ at noon on Tuesday 14 March 2017 - your Board proposes to increase the final dividend to 1.50p (2015: 1.00p), making a total for the year of 2.50p (2015: 1.70p). The dividend, if approved, will be paid on 24 March 2017 to shareholders registered at the close of business on 3 March 2017.

Board, management and employees

The Board and Group Executive have remained largely unchanged in the year. Stephen Brett intends to retire during the coming year and plans for his succession are in place. Per Staehr, who has completed nine years as a non-executive director, also plans to retire this year.

Our people are our most valuable asset. Staff turnover across the Group remains remarkably low and we are pleased that retirements are now being more closely matched by the appointment of apprentices and trainees and that the growth we are experiencing has allowed us to recruit. Group staffing is back to the level prior to the closure of our Clacton facility in 2015.

Outlook

Our order book and prospects in our home and export markets are very positive indicators. The current financial year has started well.

We look forward to our medium and longer term future with great confidence.

Michael Rusch

Chairman

23 January 2017

Chief Executive's Review

Trading results

The year to 30 September 2016 was unlike its predecessors in that it finally demonstrated that the Group has gained positive momentum, now and for the future.

The first half was taken at a gallop and this continued through the second half and into the current year. We suffered a stumble after the year end, when one of our oil and gas customers was placed into administration causing us to provide GBP124,000 in the year's accounts: the customer's business was subsequently sold to a third party and trading is expected to resume during 2017.

Reflecting the exceptional levels of prior year order entry (GBP26.77m), Group sales in the year were at a record GBP21.42m and operating profit before exceptional items increased fivefold to GBP1.533m (2015: GBP291,000).

The referendum caused uncertainty and we saw a reluctance in customers placing orders for the period from April to August. As a consequence, order entry at GBP20.69m (2015: GBP26.77m) for the year just failed to keep pace with output resulting in a small fall in the order book of GBP0.73m to GBP17.96m (2015: GBP18.69m). The immediate consequence of the Brexit vote was appreciation of the Japanese yen, which reduced the competitiveness of our Japanese customers, and uncertainty over future supply in Europe: both factors were a negative influence on ultimate customers' investment decisions and order entry during that period. However, the subsequent decline in sterling has made us more competitive at home and in export markets and our pipeline of future opportunities is at least recovering to the previous buoyant levels. In addition, the projects for which we have been selected but for which we do not yet have a delivery schedule, continue to be substantial and underpin order entry expectations in the near and medium term.

The current financial year has started at pace. We have moved up to a new level and we are moving on.

This is particularly true of LED lighting where rail project output during the year was at record levels, following exceptional order entry in the previous year. Significant rail projects supplied in the year included Intercity Express Programme (IEP), Queensland New Generation Rail (QNGR), Abellio Greater Anglia, Abellio ScotRail (ASR), West of England (WOE) and Riyadh Metro together with non-rail sales into the commercial, infrastructure and industrial markets. The pipeline for future lighting orders is brimming and the decline in the sterling exchange rate has improved our competitiveness.

Overall our electro-mechanical activities had a satisfactory year:

- Transport+, which provides after sales support for trains in the UK, had a stunning performance through the delivery of a series of contracts associated with the provision of Ethernet backbones, an essential element in making passenger Wi-Fi available on trains, and which were, in large part, won this year;

- fabrication activity was down reflecting the continued withdrawal from third party work; and

- the connector activity made progress on the back of an increase in rail project deliveries, notably, as in the case of lighting, IEP and ASR but also Crossrail. Sales of the standard connection product ranges for industrial and aircraft ground power supply markets were flat.

The electro-mechanical pipeline is strong, and potentially very strong, with many opportunities for connectors and Transport+. Fabrication is now enjoying substantial growth in inter-company demand for its capabilities.

Engineered component distribution supports all Group activities, particularly rail business at depot level, where in addition to distribution it designs and kits systems incorporating Group and third party products for installation on trains. It also distributes product to the aerospace and defence industry. Engineered component distribution had an excellent year on the back of high rail market sales, benefitting in particular from the introduction of USB seat back charging products.

Markets

The Group has been focussed on the UK transportation market, particularly rail, and selected export markets for many years. Rail as a global market has been expanding for several years. Much of this growth has been focussed on Chinese and Asian markets, where lowest initial cost, rather than whole life cost, has been the driving factor. In developed economies, like Europe and the UK, where rail is also growing fast, maintenance costs and particularly the availability of maintenance engineers are more important factors, and whole life cost is becoming the stronger criterion in supplier selection. The Group's commitment to quality and reliability, together with its innovation and industry-leading technology, is now being more widely recognised. In particular, train builders are now being required to provide maintenance for as long as thirty years, making whole life cost and availability of parts for through-life support, rather than initial cost, the major factors in supplier selection. These various factors are contributing to the Group's strong order entry performance and order books.

The Group has continued to support the train builders and refurbishers supplying the UK market and all of them are customers to a greater or lesser extent. We have continued to support Japanese train builders for their export products and, consequently, we continue to work with Hitachi, now in the UK also, Kinki Sharyo for Asia and Middle East, and Nippon Sharyo for Taiwan. In Taiwan, we also work with Taiwan Rolling Stock Company. In Australia, where the availability of maintenance engineers and whole life cost are major factors, we endeavour to work with all the train builders in Queensland, New South Wales and Victoria. The Group has identified the Gulf Cooperation Council area as being likely to appreciate our commitment to whole life cost and so we have focussed effort on the region and its established suppliers: we have won some business and are presently submitting several significant tenders for product which is to be supplied into the region from elsewhere. Unfortunately, the weak oil price has undermined this market's appetite for investment.

The worldwide air transportation market remains a very significant customer of the Group. This continues to grow with substantial investment in new airports and new larger aircraft, which are particularly demanding of ground power, which benefits our ground power support products.

Design and development

Our design and development effort last year focussed on satisfying the technical requirements of the large rail projects which the Group had won, including IEP, ASR, QNGR and Crossrail. Standard products also received attention including LED lighting products, high fire performance connection systems for use in emergency egress tunnels, enhanced aircraft ground power connectors and systems, Ethernet backbones and USB seat back charging outlets for rail passengers' phones, notebooks and laptops.

Structure and costs

Light & Power House has become the Group's centre of excellence for electro-mechanical design and manufacture.

Our new facility at Normanton in West Yorkshire, which will house our LED lighting centre of excellence, has been extended and is in the process of being refurbished and fitted out: the work is planned to be completed and the lighting operation relocated to the new premises during the first quarter of 2017. The new facility will be called LPA House and the operation will change its name to LPA Lighting Systems. Thereafter our existing lighting facility will be sold: an exceptional gain of GBP0.3m is anticipated on the disposal.

Outlook

Last year started full bore and continued at a gallop! As expected, business has settled down to a new level significantly higher than that previously achieved. We have orders on hand and projects for which we have been selected which, together with our substantial pipeline of potential new business will provide us with the opportunity to continue to maintain and grow the business further over the next few years. As we win more business, we shall have the very pleasant task of enhancing our capabilities to satisfy this demand.

We look forward to the future with increasing optimism and confidence.

Peter Pollock

Chief Executive

23 January 2017

Financial Review

Trading performance

Revenue was GBP21.42m (2015: GBP16.27m), up 31.7% and GBP5.15m on the prior year, with increased rail activity, in particular lighting projects, the main factor. The significant volume benefits meant that gross margins improved by 1.9% to 29.3% (2015: 27.4%) producing a gross profit of GBP6.28m (2015: GBP4.46m). Other operating expenses were GBP0.583m above last year at GBP4.747m (2015: GBP4.164m) - with higher bonuses at GBP220,000 (2015: GBP16,000), bad debt expense at GBP129,000 (2015: credit of GBP4,000) and share option related costs at GBP74,000 (2015: credit of GBP26,000) - such that an operating profit before exceptional items of GBP1,533,000 (2015: GBP291,000) resulted, up GBP1,242,000.

First half sales were GBP10.48m (2015: GBP7.93m), up GBP2.55m, which produced an operating profit before exceptional items of GBP782,000 (2015: GBP45,000), up GBP737,000. In the second half, sales of GBP10.94m (2015: GBP8.34m) delivered an operating profit before exceptional items of GBP751,000 (2015: GBP246,000) with sales and profits up on the corresponding period last year by GBP2.60m and GBP505,000 respectively. Whilst second half sales were GBP0.46m in front of those in the first half, second half operating profit before exceptional items trailed by GBP31,000 although the latter included a bad debt expense of GBP124,000 in respect of the administration of an oil and gas customer.

Exceptional items

The redevelopment of the Group's former Tudor Works site was completed in the year and a final property disposal gain of GBP14,000 (2015: GBP587,000) was recognised: these amounts relate to overage provided for in the original sale contract. In addition, the prior year included net reorganisation costs of GBP42,000 associated with the Group's electro-mechanical activities.

Finance costs and income

Within finance costs, interest on borrowings rose to GBP85,000 (2015: GBP75,000), the consequence of higher average borrowings, although weighted average interest rates were lower year on year. Finance income, which comprises the net interest income on the pension asset, was GBP54,000 (2015: GBP32,000).

Profit before tax, taxation and earnings per share

Profit before tax was GBP1,516,000 (2015: GBP793,000) resulting in a tax charge of GBP54,000 (2015: GBP99,000). The profit for the year was GBP1,462,000 (2015: GBP694,000) representing basic earnings per share of 12.30p (2015: 5.86p).

Balance sheet

Shareholders' funds rose by GBP0.70m in the year to GBP8.69m (2015: GBP7.99m) giving a net asset value per ordinary share of 72.7p (2015: 67.4p). The tangible net asset value per share (calculated excluding intangibles and pension asset, net of deferred tax, from the calculation) was 57.0p (2015: 47.8p). Net debt decreased by GBP0.18m over the year to GBP2.54m with gearing (net debt as a % of total equity) falling to 29.2% (2015: 34.0%).

Property, plant and equipment at 30 September was GBP5.62m (2015: GBP4.72m), of which property made up GBP3.64m (2015: GBP2.63m) and plant and equipment GBP1.98m (2015: GBP2.09m). Additions in the year were GBP1.34m (2014: GBP287,000) including GBP1.05m in respect of the new lighting facility, disposals GBPnil (2015: GBP35,000) and the depreciation charge was GBP442,000 (2015: GBP440,000).

Net trading assets (defined as inventories plus trade and other receivables, less trade and other payables and current tax) were marginally higher at GBP3.76m (2015: GBP3.73m) although the prior year included GBP0.59m in respect of the property gain noted above: excluding this item the increase was GBP0.62m which is explained by the increased trading activity seen in the year.

Intangible assets, which comprise goodwill and capitalised development costs, were GBP1.19m (2015: GBP1.22m). Goodwill, which relates to the Group's investment in Excil Electronics, was unchanged at GBP1.15m and capitalised development costs, which relate to the development of LED lighting products, were GBP0.04m (2015: GBP0.07m).

The IAS19 actuarial surplus recognised as at 30 September 2016 amounted to GBP841,000 (2015: GBP1,379,000). Changes over the course of the year comprised an income statement credit of GBP54,000 (2015: GBP32,000), employer contributions received of GBP100,000 (2015: GBP100,000) less an actuarial loss of GBP692,000 (2015: gain of GBP503,000) recognised in the statement of comprehensive income. The actuarial loss resulted from changes in financial assumptions of GBP2,674,000 (primarily reflecting the lower discount rate applicable at September 2016, 2.4% as opposed to 3.8%) less an experience gain on liabilities of GBP155,000 less a better than expected return on plan assets of GBP1,827,000.

Cash flow

Net cash from operating activities was GBP1,222,000 (2015: absorbed GBP714,000) made up of a trading cash inflow of GBP2,033,000 (2015: GBP794,000) less an increase in working capital of GBP711,000 (2015: GBP825,000), pension contributions of GBP100,000 (2015: GBP100,000) and reorganisation costs of GBPnil (2015: GBP583,000).

Capital expenditure was much increased at GBP1,294,000 (2015: GBP287,000) and included GBP1,050,000 spent on the new lighting facility; asset disposal proceeds, which all relate to overage on the sale of Tudor Works, were GBP601,000 (2015: GBP78,000); and capitalised development expenditure was GBP11,000 (2015: GBP45,000).

The Group switched its banking arrangements from Lloyds to Barclays in the year which entailed the drawdown of a new Barclays term loan of GBP2,475,000 (2015: GBPnil) and repayment of the existing Lloyds facility. Debt repayments comprised GBP1,750,000 (2015: GBP200,000) in respect of term loans together with GBP40,000 (2015: GBP35,000) in respect of finance leases. Interest payments on borrowings amounted to GBP72,000 (2015: GBP75,000). Dividend payments were higher in the year at GBP238,000 (2015: GBP184,000) and GBP51,000 (2015: GBP4,000) was received from the exercise of share options.

Overall there was a net increase in the cash position of GBP944,000 (2015: decrease of GBP1,458,000).

Net debt

An analysis of the change in net debt is shown below:

 
                                            Finance           Cash 
                                Bank          lease       and cash       Net 
                               loans    obligations    equivalents      debt 
                             GBP'000        GBP'000        GBP'000   GBP'000 
 
 At 1 October 2015             1,700             84            933     2,717 
 New finance lease 
  obligations                      -             51              -        51 
 Draw down of bank 
  loans                        2,475              -        (2,475)         - 
 Interest and arrangement 
  fee                             32              -              -        32 
 Repayment of borrowings     (1,750)           (40)          1,790         - 
 Cash generated                    -              -          (259)     (259) 
 
 At 30 September 2016          2,457             95           (11)     2,541 
                            ========  =============  =============  ======== 
 
 

Banking arrangements

During the year the Group switched its banking arrangements from Lloyds to Barclays. The Group's main bank finance is now a GBP2.475 million bank loan repayable over 5 years which was drawn down in two tranches: the first of GBP0.656 million in April 2016 to assist in the purchase of a freehold property to accommodate its lighting operation; and the second of GBP1.819 million in July 2016 to refinance the Lloyds debt. As at September 2016 the amount outstanding was GBP2.457 million which is to be repaid through 18 quarterly instalments of GBP49,800 commencing in October 2016 with the residual balance payable in April 2021: interest is payable at base rate plus 1.95%. The outstanding balance on the Lloyds loan (GBP1.500 million) was repaid in July 2016: in the year, interest was payable at LIBOR plus 2.75%.

A second GBP0.500 million bank loan facility, repayable one year after draw down, has been negotiated to assist in the extension of the property noted above although it was not utilised in the current year. Repayment is expected to be made from proceeds of the sale of the Group's existing lighting facility where a sale contract is already in place. Interest is payable at base rate plus 2.15%.

The Barclays overdraft facility has been utilised from the end of July 2016 and interest is payable at base rate plus 2.0%. In the first 10 months of the year interest was payable at 2.5% over base rate.

Treasury

The Group's treasury policy operates within approved Board guidelines and has not changed since 2015.

Stephen Brett

Finance Director

23 January 2017

Consolidated Income Statement

For the year ended 30 September 2016

 
                                                   2016       2015 
                                        Note    GBP'000    GBP'000 
 
 Revenue                                         21,422     16,265 
 
 Cost of sales                                 (15,142)   (11,810) 
 
 Gross profit                                     6,280      4,455 
 
 Distribution costs                             (1,697)    (1,557) 
 Administrative expenses                        (3,050)    (2,607) 
 
 Operating profit before exceptional 
  items                                           1,533        291 
 
 Gain on property disposal                           14        587 
 Reorganisation costs                                 -       (42) 
 
 Operating profit                                 1,547        836 
 
 Finance costs                                     (85)       (75) 
 Finance income                                      54         32 
 
 Profit before tax attributable 
  to equity holders of the parent                 1,516        793 
 
 Taxation                                          (54)       (99) 
 
 Profit for the year                              1,462        694 
                                              =========  ========= 
 
 Attributable to: 
 - Equity holders of the parent                   1,462        694 
 
 
 Earnings per share                        1 
 Basic                                           12.30p      5.86p 
 Diluted                                         11.35p      5.48p 
                                              =========  ========= 
 
 

All activities are continuing.

Consolidated Statement of Comprehensive Income

For the year ended 30 September 2016

 
                                            2016      2015 
                                         GBP'000   GBP'000 
 
 Profit for the year                       1,462       694 
                                        --------  -------- 
 
 Other comprehensive expense 
 
 Items that may be reclassified                -         - 
  subsequently to profit or loss 
 
 Items that will not be reclassified 
  to profit or loss 
 Actuarial (loss) / gain on 
  pension scheme                           (692)       503 
 Tax on actuarial loss / gain                119     (121) 
 
 Other comprehensive (expense) 
  / income net of tax                      (573)       382 
                                        --------  -------- 
 
 
 Total comprehensive income 
  for the year                               889     1,076 
                                        ========  ======== 
 
 Attributable to: 
 - Equity holders of the parent              889     1,076 
                                        ========  ======== 
 
 

Consolidated Balance Sheet

At 30 September 2016

 
 
                                            2016      2015 
                                         GBP'000   GBP'000 
 
 Non-current assets 
 Intangible assets                         1,194     1,222 
 Property, plant and equipment             5,624     4,721 
 Retirement benefits                         841     1,379 
                                           7,659     7,322 
                                        --------  -------- 
 
 Current assets 
 Inventories                               3,030     2,658 
 Trade and other receivables               4,678     4,101 
 Cash and cash equivalents                   149         5 
                                        --------  -------- 
                                           7,857     6,764 
                                        --------  -------- 
 
 
 Total assets                             15,516    14,086 
                                        --------  -------- 
 
 
 Current liabilities 
 Bank overdraft                            (138)     (938) 
 Bank loans and other borrowings           (247)     (236) 
 Current tax payable                       (122)      (30) 
 Trade and other payables                (3,803)   (2,977) 
                                        --------  -------- 
                                         (4,310)   (4,181) 
                                        --------  -------- 
 
 Non-current liabilities 
 Bank loans and other borrowings         (2,305)   (1,548) 
 Deferred tax liabilities                  (193)     (350) 
 Other payables                             (19)      (20) 
                                        --------  -------- 
                                         (2,517)   (1,918) 
                                        --------  -------- 
 
 
 Total liabilities                       (6,827)   (6,099) 
                                        --------  -------- 
 
 
 Net assets                                8,689     7,987 
                                        ========  ======== 
 
 
 Equity 
 Share capital                             1,196     1,185 
 Share premium account                       504       464 
 Un-issued shares reserve                    183       197 
 Merger reserve                              230       230 
 Retained earnings                         6,576     5,911 
                                        --------  -------- 
 Equity attributable to shareholders 
  of the parent                            8,689     7,987 
                                        ========  ======== 
 
 
 

Consolidated Cash Flow Statement

For the year ended 30 September 2016

 
                                            2016      2015 
                                         GBP'000   GBP'000 
 
 Profit before tax                         1,516       793 
 Finance costs                                85        75 
 Finance income                             (54)      (32) 
 
 Operating profit                          1,547       836 
 
 Adjustments for: 
 Depreciation                                442       440 
 Amortisation of intangible 
  assets                                      39        58 
 (Gain) / loss on sale of 
  property, plant and equipment             (14)      (43) 
 Non-cash charge for equity-settled 
  share-based payments                         -         6 
 Loan arrangement fees                        19         - 
 
                                           2,033     1,297 
 Movements in working capital 
  and provisions: 
 Change in inventories                     (372)     (513) 
 Change in trade and other 
  receivables                            (1,212)     (628) 
 Change in trade and other 
  payables                                   873     (203) 
 Change in provisions                          -     (567) 
 
 Cash generated / (absorbed) 
  from operations                          1,322     (614) 
 Retirement benefits (pension 
  contributions)                           (100)     (100) 
 
 Net cash from operating activities        1,222     (714) 
                                        --------  -------- 
 
 
 Purchase of property, plant 
  and equipment                          (1,294)     (287) 
 Proceeds from sale of property, 
  plant and equipment                        601        78 
 Capitalised development expenditure        (11)      (45) 
 
 Net cash used in investing 
  activities                               (704)     (254) 
                                        --------  -------- 
 
 
 Drawdown of bank loans                    2,475         - 
 Repayment of bank loans                 (1,750)     (200) 
 Repayment of obligations 
  under finance leases                      (40)      (35) 
 Interest paid                              (72)      (75) 
 Proceeds from issue of share 
  capital                                     51         4 
 Dividends paid                            (238)     (184) 
 
 Net cash from / used in financing 
  activities                                 426     (490) 
                                        --------  -------- 
 
 
 Net decrease in cash and 
  cash equivalents                           944   (1,458) 
 Cash and cash equivalents 
  at start of the year                     (933)       525 
                                        --------  -------- 
 Cash and cash equivalents 
  at end of the year                          11     (933) 
                                        ========  ======== 
 
 

Notes

1 - EARNINGS PER SHARE

The calculation of earnings per share is based upon the profit for the year of GBP1,462,000 (2015: GBP694,000) and the weighted average number of ordinary shares in issue during the year of 11.884m (2015: 11.846m). The weighted average number of ordinary shares diluted for the effect of outstanding share options was 12.887m (2015: 12.664m).

 
                                       2016                                 2015 
                      Earnings     Weighted    Earnings    Earnings     Weighted    Earnings 
                                    average         per                  average         per 
                                     number       share                   number       share 
                                  of shares                            of shares 
                       GBP'000      Million       Pence     GBP'000      Million       Pence 
 
 Basic earnings 
  per share              1,462       11.884       12.30         694       11.846        5.86 
 Effect of share 
  options                    -        1.003      (0.95)           -        0.818      (0.38) 
                    ----------  -----------  ----------  ----------  -----------  ---------- 
 Diluted earnings 
  per share              1,462       12.887       11.35         694       12.664        5.48 
                    ==========  ===========  ==========  ==========  ===========  ========== 
 
 

2 - INFORMATION

The preceding information does not constitute the Company's statutory accounts for the years ended 30 September 2016 or 30 September 2015 but is derived from those accounts. The 2016 accounts are expected to be posted to shareholders on 17 February 2017 and will be available from the Company Secretary, LPA Group Plc, Light & Power House, Shire Hill, Saffron Walden, Essex, CB11 3AQ and on LPA's website (www.lpa-group.com), shortly thereafter. Statutory accounts for 2015 have been delivered to the Registrar of Companies, and those for 2016 will be delivered following the annual general meeting. The auditors have reported on these accounts and their reports were unqualified and did not contain statements under the Companies Act.

The Chairman's Statement, the Chief Executive's Review, and the Financial Review included in this preliminary announcement form part of the Strategic Report included in the 2016 accounts. The Strategic Report and other content of this preliminary announcement have been prepared solely for the shareholders of the Company as a body. To the extent permitted by law the Company, its directors, officers and employees disclaim liability to any other persons in respect of the information contained in this preliminary announcement. Sections may include statements containing risks and uncertainties facing the Group, and other forward-looking statements, which by their nature involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The Company undertakes no obligation to update any forward-looking statements.

3 - ANNUAL GENERAL MEETING

The annual general meeting of the Company is to be held at 12 noon on Tuesday 14 March 2017 at the offices of Instinctif Partners, 65 Gresham Street, London, EC2V 7NQ.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 23, 2017 02:00 ET (07:00 GMT)