Lpa Share Discussion Threads

[jermaine77] 24/10/2011 08:56

Tom Bulford

There can hardly be an industry with more certain growth prospects than LED lighting.

These semiconductor sources of light are so superior to traditional methods that rapid adoption is inevitable. The latest LEDs generate over 200 lumens per watt, superior to any other light source and over six times the 30 lumens/watt generated by the conventional halogen bulb.

That alone is a good reason to use LED lights. But they have several other attractions too. They can last up to 90,000 hours, removing the need to change light bulbs – which in the public sector at least always seems to be a remarkably expensive exercise.

This superior efficiency also makes LED lighting 'green'. Today, lighting accounts for 19% of all electricity usage and creates as much harmful CO2 emissions as 70% of the world's passenger car fleet. This makes lighting an easy target for governments, and all over the world regulators are stipulating the use of LEDs. The switch to LED lighting over the next decade will save the power generated by 559 full sized power stations and remove 8.4 billion tonnes of CO2 emissions.

The perspiring actors' new best friend

The sheer efficiency and low lifecycle cost of LEDs would be enough to guarantee their adoption, but the attractions do not end there.

LEDs also offer better, controlled, lighting. They can be programmed to glow or dim and to change colour. By integrating them with sensors they can detect the level of natural light in a room and adjust their output accordingly. Lighting used to illuminate and colour buildings has spawned a new word – 'architainment'.

And unlike halogen bulbs which dissipate a lot of energy in the generation of heat rather than light, LEDs remain cool. This can make a huge difference in environments such as films studios, where perspiring actors have traditionally struggled under hot spotlights to prevent their make-up from running down their face. On a film set, not only can LED lighting keep everybody cool but it can also allow filming to continue for longer by artificially extending the appearance of daylight.

With 37 billion light sockets globally, the lighting market is worth $70bn. JP Morgan reckons that half of the general illumination market will have converted to LED by 2015. This should be an excellent opportunity for investors.

[jermaine77] 24/10/2011 08:42

That was my first thought but net debt is £1.8m and debt service costs of £100k? p.a. should not be too onerous for a business with annual turnover of £16m ?

[double6] 24/10/2011 08:33

Lots of debt ?

[jermaine77] 24/10/2011 08:25

So at interims

Revenues were up 21% to £8.4m (from £6.9m)
PBT £151k (versus LBT £307k i.e. a £500k turnaround)

So what would market expectations be for full year ? £16.8m of Turnover and PBT for full year of £0.3m ?

What is 'significantly exceeding expectations'? 50% higher ? 100% higher ?

[jermaine77] 24/10/2011 08:05

New contracts, letter of intent and trading update

New contracts and letter of intent

Further to its announcement on 6 May 2011, LPA Group plc, the LED lighting and electro-mechanical specialist manufacturer, is pleased to announce two further orders totalling GBP0.6 million for LED light engines for use in hazardous area lighting on the Gorgon Gas Field in Australia. These are due for delivery in the current financial year and bring the total value of orders received on this project to more than GBP1 million.

LPA is also pleased to announce that it has received a letter of intent from Siemens, together with an order to cover initial design and tooling, to supply LED LumiMatrix lighting for the Warsaw Metro project, which is the first application using Siemens new Inspiro Metro product. The value to LPA of the first phase of the project is expected to be GBP0.6 million with delivery during 2012 and 2013.

Trading Update

LPA has experienced stronger than expected trading during the final quarter of its financial year ended 30 September 2011, with the result that the Group's full year results are likely to significantly exceed market expectations.

Peter Pollock, Chief Executive, commented:

"This is good news. Our LED lighting business is really beginning to demonstrate its growth potential and it is great to be building a worthwhile relationship with Siemens, one of the world's leading suppliers of rail vehicles. Group prospects in the new financial year remain encouraging."

[jermaine77] 24/10/2011 08:04

LPA - Interesting ? £15m of turnover p.a. Mkt Cap £4m

Just said 'results will significantly beat expectations' with orders announced today of £1m+

LED business looks like pretty high growth potential ?

[castleford tiger] 30/8/2011 14:42

thanks for that

got another 15k today.

tiger

[myrtle1] 07/8/2011 14:12

If anyone is interested, there is an article published by Aimzine on LPA this month -

I believe you have to register but I think it is free.


'Myrtle'

[cyril4] 06/11/2010 09:39

doea a ap still want this or o twelve,or neither as nothing is happening with either

[snowman10] 29/6/2010 17:53

You guys may be right and Trigger wrong !!

All i know is that he has loads and has been buying again.

Contact no re AP?

Cheers
Snow

[ls lowry] 28/6/2010 19:09

I think AP is fuly aware of what is going on and what is needed. If any investors are agrieved at management you could always call AP. He can be contacted through Panther Securities PLC.

[davidosh] 28/6/2010 18:29

Have you tried contacting Andrew Perloff and giving him the benefit of your knowledge and sharing your thoughts ?

I managed to get together with other shareholders and encouraged a new large investor to take an active interest at Tandem (TND) and we are well on the way now to making a big difference. New strategy ,new board members and better communication.

[henry1000] 28/6/2010 17:41

The problem is that the "family shareholders" who inherited their shares believe everything the Chairman tells them. He inherited the firm ran it down then brought in the present CEO and retired on a fat pension 10 years agoat 55 or so. The first acquisition made in 1998 was Channel Electric Equipment Ltd - this has been making about £500K profit every years on a £4M turnover. Just 20 employees. Just look up their annual accounts (cost £1 from Company House) Subsequent acquisitions were dogs (Haswell Engineering and Excil!!). Ok so Excil has some good LED Technology. But Niphan (originally LPA Industries) has always been a basket case. CEO set himself up as the export salesman so he can roam the world staying in nice hotels. Yes there has been some export business from Australia and Japan but the cost of sales must be astronomical and all those exhibitions! I still have some shares left to my regret. They still hold their AGM in London - attended by about 5 shareholders and 20 advisers/accountants etc. Oh the real reason the business does so badly - The CEO is an ACCOUNTANT.

[davidosh] 28/6/2010 17:12

That was it. Andrew Perloff and I think he challenged the board at one stage.
The market cap is just three million but last time I checked the management were taking out very significant remuneration packages. He needs some support by the sounds of it.

[ls lowry] 28/6/2010 16:45

You mean Andrew Perloff. Well he is still invested and wont be at all happy with recent performance. When AP took his stake the properties were worth more. They have declined since. Thats probably why they are seeking a change of use.

The last 5 years proitability been very poor managemet need throwing out and operations sold off.

[davidosh] 28/6/2010 12:55

Henry1000...Exactly my point a few months back. I have watched this one decline for years and it needs new blood in there IMO. What happened to the activist shareholder from years ago ?

[henry1000] 28/6/2010 12:02

Well more Jam tomorrow! The Chief Executive has been on the bridge of the Belgrano for 13 years now. He has stuffed his pension pot with more cash than the shareholders have received in that time. He has extended his contract from the mandatory 62 to 65. I guess he wants to go down with the ship. Now he is going to try and sell the site at Saffron walden. By the time it has been cleared and decontaminated and Niphan moved to a new shed there will be nothing left for the shareholders!

[snowman10] 16/4/2010 08:18

It may take time but there is hidden value in this company.
Tiger has just under 3% now and he has been talking to another big shareholder about a way forward.
I agree Directors have had it easy but a seat on the BOD may be coming to the above.
The statement was drummed down and this has allowed a stake to be bought.
I think EKT would have a go ( but thats not the best option for shareholders). Eitherway a shake up is coming I HOPE . Thats certainly what i am hearing and that can only be good news.
EKT was 7p 3 months ago and now 23p so this little companies can do nothing and then power away very quickly.

Lets keep up the pressure eh!

Snow

[davidosh] 15/4/2010 22:39

snowman10....What makes you say that ? I think it is very poor at creating shareholder value but has been good for directors over the last few years. What has been the return for those holding over say 5, 3 and one year periods ?

Let me tell you the share price in early 2005 was 38p then in April 2007 was 38p and last April was 42p and has been pretty poor in between. It has recently hit lows for the last three years but it does not excite me on past form unless you know something good that you want to share. The recent outlook is not convincing..

[snowman10] 15/4/2010 19:28

cheap as chips

[999henry] 11/6/2009 10:25

Who is kidding who? Did LPA really appear at a Growth Company Investor show?
The only growth in the past 10 years has been in Executive Remuneration. In 1998 the shares were at about 70P and apart from a freak misuderstanding in about 1999 they have languished ever since. They missed the chance to sell the Saffron Walden site when their agent suggested it could be worth more. Has anyone asked about Management Succession? The present Chief Executive reaches his sell by date in 2 years and 3 months but by then will have acquired a substantial pension fund!! PS re the contracts on a £16M sales budget you need much bigger contracts than those announced so far. Meanwhile the shareholders are periodically fed peanuts but maybe not this September.

[eburne1960] 10/6/2009 16:50

Not a good day to have a stand at the Growth Company Investor Show at the Barbican! Spoke to the finance director who was not best pleased at the market reaction to the news. There would still appear to be more contract wins in the pipeline, and they seem happy about prospects over the next 3 years, so maybe a buying opportunity?