Lpa Share Discussion Threads

[the fox] 21/1/2005 08:59

Fantastic results. EPS 2.14p, increased dividend, reduced gearing and a very bullish outlook statement:

We have made a sound start to the current financial year, and this is
significantly ahead of the corresponding period last year. Your board is hopeful
of further progress during the year.

Up 17% as I type. I see a further re-rating in due course.

DR

[acol] 06/1/2005 21:56

Happy to sit on investment. Value will have out in the end.

[costapacket] 06/1/2005 21:41

At last some movement albeit small - LPA is not catching the limelight but remains a solid patient play for me.

[hugepants] 13/12/2004 09:16

I note from the annual report there is a pension SURPLUS of around 0.5M. When FRS17 comes into play this will increase NAV by this amount.

[seabird] 24/11/2004 14:15

Little burst with little buying - 5000 shares - maybe some rumour about the results has hit the MMs? or maybe MM got nothing better to do? I understand nothing!

[stinto] 23/11/2004 12:33

AFAIK the results are meant to be good.
Who really understands what the mm's are up to?

[seabird] 23/11/2004 11:47

A fall with virtually no selling - 4000 shares - maybe some rumour about the results has hit the MMs?

Cbird

[seabird] 16/11/2004 16:24

Little burst with no buying - fox: maybe some rumour about the results has hit the MMs?

Cbird

[drewz] 15/11/2004 10:16

I am long LPA several months now.

[shirishg] 10/11/2004 17:20

Post removed by ADVFN

[puku] 10/11/2004 12:35

I agree. Had to pay 32.5p after the recent surge but with lots and lots of orders and the China connection I'm looking for 70p by end of 2005.

[the fox] 09/11/2004 10:20

Results due out back end of the year, early 2005. This is a fantastic opportunity to get into a receovery story that is just beginning IMHO.

DR :)

[seabird] 09/11/2004 09:09

What's up?

[the fox] 15/10/2004 16:44

Yes, this is a perfect recovery play. The balance sheet is improving, cash i being generated and contracts are being won. These were £1.50 a few years back and if the FY results show further progress, they should start rising.

DR

[acol] 01/10/2004 17:29

the fox

Early signs indicate a return to good profitability. With more news investors will start climbing aboard and the low liquidity will rapidly push the price up. In past years the share has traded between 140 - 174p. Doubt very much if it will reach that level - leastways in the medium term. However,60p ish is a real possibility. I am quite happy to sit on this one. A few sellers today pushed the price down 2p. If it returns to around 25p offer I will be among the first to add to my holding.

[the fox] 30/9/2004 10:44

What I especially liked was:

'Last year order entry weakened in the second half, which restricted progress during the first half of this year. There is no sign of a similar weakening in order entry this year and the high level of tendering continues. '

Even though the 1st half was weak they turned a small profit.

These are a great recovery play and I feel 50p is a decent target on a 6 month timeframe.

DR

[costapacket] 29/9/2004 19:50

Acol - I bought earlier this summer - certainly looks to have turned the corner in an impressive fashion, the reinstatement of the dividend supports that.

Most surprised that the excellent contract win yesterday has not attracted more discussion.

[acol] 29/9/2004 00:41

Today has turned out to be a good day and the move in LPA is the icing on the cake. Rather surprised that so few people picked up on the good news announced in June. The price soon fell back and I added to my earlier holding at 23.5p in early August. Poor liquidity is a major factor and you have to time your trades well.

If progess continues to be made today's price could look very cheap - DYOR.

[the fox] 28/9/2004 16:00

LPA Group Plc, the electrical and electronic equipment manufacturer and
distributor, announces a return to pre tax profit of #39,000 (2003: loss of
#288,000) for the six months ended 2 April 2004.


KEY POINTS

Turnover Increased 13.9% to #6.7m (2003: #5.9m)

Profit Before Tax #39,000 (2003: LOSS #288,000

Earnings Per Share
Basic 0.28p (2003: LOSS 2.33p)
Diluted 0.27p (2003:LOSS 2.33p)
Adjusted (before goodwill 0.70p (2003:LOSS 1.91p)
amortisation)

Dividends Interim resumed at 0.15p (2003:Nil)

Gearing Reduced to 69% (2003:81%)




Group profitable over last twelve months

Continuing strong order entry with several important new contracts won

Heavy level of tendering with encouraging opportunities in rail market
particularly in refurbishment, London Underground and Export.

Continuing improvement in operational performance.


Peter Pollock, Chief Executive, commented

"We have moved on from an unstable condition a year ago through stability to a
situation where we are beginning to move forward. We have a strong management
team. We are building a strong long-term order book for the future. Our
objectives are to continue to build order entry both in home and export markets,
to improve operational performance and profitability, to grow organically and by
acquisition and to deliver long term shareholder value. We look forward to
continuing progress"


Highlights from the chairman's statement:
Quote:
In my statement to shareholders a year ago I said that 'the new management
structure and the unified sales force appears to be making progress' and that
there was 'clear evidence of the business units working together to reduce cost
and improve performance'. I am delighted to report that this strategy has proved
successful and that the Group is in substantially better condition now than it
was a year ago.


Quote:
Despite a very strong orders performance in the first half of last year (it was
up 43% over the previous year) order entry is up a further 3%, and over the last
two months it has been significantly stronger with many opportunities still in
prospect. Many of the major new contracts recently reported have been for
long-term refurbishment projects of existing rolling stock including both
Electric Multiple Units and Diesel Multiple Units as well as London Underground.
These contracts are securing the future of the Group. Last year order entry
weakened in the second half, which restricted progress during the first half of
this year. There is no sign of a similar weakening in order entry this year and
the high level of tendering continues.


Quote:
The new sales structure and strategy is proving very successful. Marketing and
selling the entire Group product range, 'a one stop shop philosophy' with system
integration capability, is entirely in keeping with our larger customers' desire
to reduce their vendor bases. Thus we are offering a wider scope of supply and
winning contracts that utilise capabilities from the different operating units
of the Group. We are seeking to develop closer relationships with our main
customers wherever they manufacture in Europe and beyond.

Operationally we seek improvements at each operating unit and regularly review
progress. There are no major capital expenditure programmes planned this year,
but a number of improvement projects, particularly in information technology,
are under way.

The Group is well placed to benefit from current opportunities. Profitability
improvement, cash flow improvement and gearing reduction are the current
short-term goals coupled with sustaining and increasing order entry. The
longer-term future for the Group is much improved. The Board is much more
confident about future progress. Although much remains to be done, we have a
strong management team dedicated to delivering further progress.


The shareprice has moved up today on the announcement of £2m worth of new orders:

Quote:

LPA is pleased to announce that it has won a number of new rail contracts with a
combined value in excess of #2m. Order entry for the eleven months to the end of
August is very strongly ahead of the same period last year.



LPA Niphan has been awarded contracts, for the supply of equipment and
components for the upgrade of a number of rail vehicle and metro vehicle fleets,
including a contract for the supply of an entirely new design of battery raft.
All group companies will be involved in the projects as sub contractors to LPA
Niphan.



Other major contracts are in prospect, with delivery spread over several years,
which would secure a long term base load for the Group.



The Group has continued to make progress in the second half, in line with the
board's expectations for the financial year ending on 30th September 2004."
Peter Pollock, Group Chief Executive, commented



"These contracts are exciting and are helping to secure the Group's position as
a supplier to leading UK and European Rail vehicle builders. The unified sales
approach, promoting the Group's entire capability is succeeding.

We will continue to focus on opportunities to secure the near and long term
progress of the Group.

Our gearing is reducing and our confidence is building so that the
identification of small in-fill acquisitions, which will strengthen our
business, is firmly back on our agenda."


The shareprice was £1.50 in 2001 when they made a profit of just over £1m.

The current market cap is £2.38m.

1.46 EPS forecast for 2004
3.12p eps for 2005
(From Yahoo.co.uk)

PEG 0.11
Current P/E 18
Forward P/E of 10 for 2005

EPS growth of 170% and 113% respectively in '04 and '05

I believe there is upside here. The statements contained in the results and contract announcement are velly bullish.

The company reduced gearing from 82% to 69% and is further being reduced.

The order book is very strong:
Quote:

Order entry for the eleven months to the end of
August is very strongly ahead of the same period last year.



There is also clear visibility with regard to the order book:
Quote:

Despite a very strong orders performance in the first half of last year (it was
up 43% over the previous year) order entry is up a further 3%, and over the last
two months it has been significantly stronger with many opportunities still in
prospect. Many of the major new contracts recently reported have been for
long-term refurbishment projects of existing rolling stock including both
Electric Multiple Units and Diesel Multiple Units as well as London Underground.
These contracts are securing the future of the Group. Last year order entry
weakened in the second half, which restricted progress during the first half of
this year. There is no sign of a similar weakening in order entry this year and
the high level of tendering continues.



Note that there was 'restricted progress' in the first half of this year but the company still turned a profit for the first time since 2001.

The balance sheet is improving. Net Debt was reduced by over £400K at the interims (now £2.6m). Net current assets stand at £1.7m.

Net cash inflow has doubled to £716K.

All in all, the company seems to have turned themselves around big style and although the heady days of £1.50 may be a number of years away, if they maintain their progress, I feel that the extremely strong growth in earnings, coupled with the strong order book and reduction in debt makes LPA Group a strong buy. The company is also very openly bullish and I believe that the FY figures will exceed market expectations. I believe these are due in December but interest may be aroused by the announcement today. Further announcements between now and the FY results will also push the price up.

I hold as of today.

Please DYOR and verify all the info contained within.

DR

[costapacket] 14/7/2004 20:15

Mine was the only buy yesterday - I see a solo trade of 20K, a buy at 27p coming through today. Pretty happy to tuck away as the recovery continues...

[diogenesj] 13/7/2004 13:57

I think it probably is, C: but I had second thoughts when I saw the spread (currently about 20%). I'm not sure it's worth the risk after all.

[costapacket] 13/7/2004 08:38

Good morning - Just come on board after researching. This looks like a good recovery story.

[diogenesj] 10/7/2004 19:08

Hello, punters. I noticed a report of the interim results tucked away in a two-week-old copy of the IC, and had a look at them. I think I'll have some of these. This company is recovering. Interim dividend restored, profitable for 12 months now, sales well up, strong orders, balance sheet strengthened with debt sharply reduced, chairman upbeat.

The shares topped out at 175p four years ago. They could take some time to get back there, but elvis's target of 75p should be in reach in a year or two.

Nice quiet bulletin board too: always a good sign!

[seabird] 28/6/2004 16:54

All of 5000 shares sold today and clunk? What is going on????

[drewz] 23/6/2004 13:18

Bought some more on today's encoraging outlook statement.

Business is booming.

100p in due course?