LPA Group PLC
24 February 2000
Results of resolutions at AGM,
Chairman announces new long term Rail and Air Contracts and a year of
consolidation.
LPA Group Plc ('LPA' or 'Group'), the Saffron Walden based specialist
electrical equipment manufacturer, is pleased to announce that at the Annual
General Meeting held today all resolutions were approved by shareholders.
Michael Rusch Chairman commented as follows;
Although this year is likely to be one of consolidation, I am pleased to
report excellent prospects for the future.
Group long-term order books have been strengthened by large contracts for rail
vehicle and aerospace equipment.
LPA Industries' contract, to supply equipment for the Virgin West Coast Main
Line rolling stock being built by Alstom in Birmingham, has been extended in
scope and will now exceed £2.1m (previously estimated at £1.7m). Major
deliveries will commence in 2001.
LPA has also been awarded a £0.4m contract for the Virgin Cross Country
project rolling stock, being built by Bombardier in Belgium and at Wakefield
in England. LPA has been selected for the first phase of the 4th Generation
Tangarra (4GT) Rail Project being built by Clyde Engineering in Australia also
worth £0.4m.
Channel Electric Equipment has won a £0.4m contract to supply components for
the Electronic Load Management System (ELMS) on Boeing aircraft and a £0.25m
extension to the contract for the supply of components on Airbus. Channel has
been selected to supply terminal blocks and other equipment on Typhoon.
Channel is continuing to perform very well. However LPA Industries is
suffering contract delays on existing rail projects arising from the re-
negotiation of rail franchises, and also increased competition in its
industrial product range.
The Rail Franchising authority has announced that it is to buy 1500 trains for
delivery before 2005. This, combined with the planned increase in investment
in the rail infrastructure, should mean a sharp increase in future demand for
the Group's products.
Progress this year will be limited as LPA Industries continues to re-structure
itself to cope better with significantly increased activity next year and
thereafter. Given the strong balance sheet and organic and acquisition growth
opportunities, the board remains very confident for the future.
Enquiries
Peter Pollock Chief Executive 0788 1626123 or 01799 512844
Ian Dighe Singer & Friedlander 0171 623 3000
Rod Venables Greig Middleton 0171 655 4000