Lpa Share Discussion Threads

[ansc] 03/8/2017 09:11

Chairman's comments (on 26th June)

"In my comments at the Annual General Meeting, I reported that the Group had established itself on a new trading level and that this was being sustained with excellent levels of orders and sales. I am delighted to report that this remains the case.

"Our new manufacturing facilities give us the capacity and improved productivity to continue to grow and prosper.

"Our current order book underpins expected progress in the remainder of this financial year and in the medium term.

"As a measure of our continued confidence, the interim dividend has been increased by 5.0% to 1.05p."

Personally, unable to find much wrong with that so current price weakness is puzzling. With the PE ratio possibly around 10 (ish) at this price , added a few more yesterday.

[buywell3] 20/7/2017 16:29

Have you been topping up today then ?

or is it you freddie

[castleford tiger] 20/7/2017 11:34

Massive 30/40% upside to broker target.

If available buy is my advice
tiger

[freddie ferret] 17/7/2017 17:16

Too early to say this is bottoming out.

[buywell3] 15/7/2017 07:11

POST REMOVED

[buywell3] 11/7/2017 09:47

POST REMOVED

[ansc] 05/7/2017 17:29

Why don't you give us all a break and find these facts out for yourself (if you are that interested) rather than asking these never-ending, seemingly pointless questions on this board and boring us all to tears?

[buywell3] 05/7/2017 16:53

What about the new ships being built up in Scotland for the navy ? by BAE



Do LPA do any contract work that is ship related ?

If they were/are to get any naval work with BEA on the above then LPA would be working a contract for BAE on this



Are they ?

[castleford tiger] 05/7/2017 11:14

THANKS GREAT insight. I have e mailed Peter

[olliemagern] 05/7/2017 11:02

A Bombardier and Siemens Joint venture and stand alone rail company would have to have a base in the UK in order to bid for future HS2 trains.
Whoever wins contracts over the next 20 years Bombardier, Siemens, China or Hitachi, LPA being local will be a preferred supplier to HS2 and has already supplied to all of these companys.
As LPA are a world class patented and proven reliability to BS standards supplier they will also want to get involved in every one of the worlds new infrastructure train builds.

[olliemagern] 05/7/2017 10:40

WH Ireland have only been the broker for a few years, in that time they have given 4 forecasts and every one has been at least 10% short of the actual result. As LPA are such a small co the broker has a limited budget for analysis hence the cautious stance. The f/c should therefore be used as a minimum they will rise again on the September update and rise again when results come out in January.

[castleford tiger] 05/7/2017 09:05

I shall ask the man in charge.

tiger

[buywell3] 05/7/2017 08:46

What you need to see Tiger is an RNS saying that LPA has won a contract with Bombadier
re their £900M new trains deal.

Or some such similar size deal ie worth around £3M

What other companies are likely to be in that sized frame ?

[castleford tiger] 04/7/2017 18:21

Yes Buywell.
The 300p target for 2017 is equal to 20x earnings which is probably too high a valuation. However it may take that sort of figure to buy the company.
It was a brave target but sadly optimistic target .

I still think great things to come here.
current p/e is 10 which is a bit harsh

Tiger

[castleford tiger] 04/7/2017 18:15

Market Cap £20m Current Price 166.5p Target Price 200p (unch)

Today’s trading update notes “excellent levels of orders and sales” in the year to date which would seem to comfortably support our FY revenue growth estimate of +5% (to £22.5m). The statement also flags slightly lower H1 margins which is explained by i) a shift in product mix towards project work; ii) reduced defence and aerospace business; iii) the previously-flagged loss to administration of an oil and gas sector customer; and iv) the phased relocation of LPA’s LED lighting facility in Yorkshire (currently underway).

H2 is expected to be unaffected by these factors and when coupled with the reference to strong growth in the sales line, we remain comfortable with our FY17 PBT forecast of £1.7m (EPS 13.2p). Other takeaways include a £2m contract for connectors in London, new news today.

LPA’s fortunes are substantially underpinned by investment in the rail industry, not just in the UK (Crossrail, Intercity Express etc) but also in Europe, Asia and Australia. We retain our 200p price target (15x current year P/E) and a Buy recommendation.

[buywell3] 03/7/2017 08:15

I see you have put some even bigger big numbers on this one


Castleford Tiger - 26 Mar 2015 - 12:53:26 - 123 of 597 LPA Group 2014 - Multi-year growth phase starting. - LPA
2017/2018 SHARE PRICE STARTS WITH A 5 based on profits of 4 million a year.

see what comes out of todays meeting.

tiger

[buywell3] 03/7/2017 08:15

I see you have put some big numbers on this one

Castleford Tiger - 23 Mar 2016 - 10:40:12 - 258 of 595 LPA Group 2014 - Multi-year growth phase starting. - LPA
not a penny less than 300p which remains my 2017 target.

tiger

[glasshalfull] 02/7/2017 20:49

LPA

Playing catch up on a few companies.

I see WH Ireland have raised estimates by +10% for 2018 on the back of last weeks H1 results announcement to £2.1m PBT & 14.3p EPS (from £1.85m & 13.1p EPS previously forecast).

FY2017 forecasts remain unchanged at 13.2p EPS or 8% earnings growth this year while the broker also points out that the company is a beneficiary of the weaker £ as 35% of revenue is outwith the UK.

So, on a PER of 10 for this year & 9 next while providing a 2% div yield. Looks decent value to me especially in light of the growth in rail & on the back of their relocation & reorganisation in new facilities which LPA indicate now provides them, "...with expanded capacity, improved productivity and excellent facilities for the future."

Kind regards,
GHF

[castleford tiger] 02/7/2017 20:47

bit small for them really but Eric seems to be paid to promote the company with 3 upgrades so far.

[buywell3] 01/7/2017 20:57

You can see where I am coming from Tiger I hope

The LPA BOD are being a bit daft in not letting investors have an informed insight on future earnings.

Or put it another way , do they want joe bloggs buying LPA shares ?

They have next to no institutional investors holding stock

Make you wonder.

[castleford tiger] 01/7/2017 12:42

Current forecasts are by
[e-mail]

He may furnish you with the information but I cannot as its not mine to share.

very best
tiger

[castleford tiger] 01/7/2017 12:37

Rail industry a key market A significant proportion (est. 55% of revenue and growing) of
LPA’s output serves the rail industry. Key products supplied to this market are onboard
energy efficient LED lighting systems and connectors linking carriages together providing
the onboard artery for power, data, communication and passenger information systems.
LPA is a major exporter (circa one third of revenue) hence a beneficiary of weaker GBP but
it is also specified in the UK on both Crossrail (through Bombardier Transportation) for
connectors and IEP (through Hitachi) for both lighting and connectors. IEP is expected to
comprise 900 new carriages by 2020 and with LED lighting systems typically costing
between £2k and £10k per carriage this programme alone offers a very substantial
opportunity for LPA.

[castleford tiger] 01/7/2017 12:36

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.