Business
LPA : 2026 Half Yearly Report
LPA : 2026 Half Yearly
About this update from Lpa Group Plc
1 June 2026 LPA Group Plc ("LPA", the "Company" or the "Group") Interim Unaudited Group Results for the six months ended 31 March 2026 LPA Group plc, the innovation-led engineering company that designs and manufactures electronic and electro-mechanical components and systems, announces its results for the six months to 31 March 2026. FINANCIAL HIGHLIGHTS 6 months to 31 March 2026 6 months to 31 March 2025 Year to 30 Sept 2025 Unaudited Unaudited Audited Order Entry £10.6m £17.0m £28.8m Order Book £29.3m £32.8m £32.5m Revenue £13.8m £9.5m £21.5m Adjusted EBITDA* £1.0m £(0.5)m £(0.1)m Profit / (Loss) Before Tax £0.4m £(0.5)m £(0.6)m Basic Profit / (Loss) Per Share 2.89p (1.49)p (2.64)p Net Assets per share 124.0p 116.9p 118.3p Gearing ** 34.8% 24.1% 21.5% * Adjusted EBITDA is Operating Profit/(Loss) before Share Based Payments, Negative Goodwill, Non-recurring items, Depreciation and Amortisation ** Net Debt as a % of Total Equity Robert Horvath, Chairman, commented: I am pleased to report that the Company has delivered a strong performance in the first half of the year. We are actively collaborating with a number of customers to develop tailored products, while maintaining a clear focus on fulfilling shorter-term orders to support immediate delivery requirements. Although we continue to await updates on several longer-term contracts, overall sales volumes have remained robust and in line with budget expectations. Looking ahead, the outlook for the second half of the year is encouraging. We remain confident in our longterm growth prospects and our ability to generate sustained value for our shareholders. We therefore expect to deliver full-year results in line with current market expectations. Enquiries: LPA Group plc +44 (0) 1799 512 800 Robert B Horvath, Chairman Philo Daniel-Tran, Chief Executive Officer https://www.lpa-group.com Stuart Stanyard, Chief Financial Officer Cavendish Capital Markets Limited (Nominated Advisor & Broker) +44 (0) 20 7220 0500 Corporate Finance Ed Frisby / Elysia Bough / Joe Smith Corporate Broking Ella Bedford About LPA LPA Group plc (AIM: LPA) is an innovation-led engineering company that designs and manufactures electronic and electro-mechanical components and systems. Focused on transport (Rail and Aviation), Defence, Infrastructure and Industrial markets and supplying into hostile and challenging environments, LPA is known for engineering solutions to improve product reliability, reducing maintenance and life cycle costs. The Group has four sites across the UK, selling to customers in the UK and overseas. Three of these are design and manufacturing sites: Saffron Walden, Essex - electro-mechanical systems for Rail, Aviation and Industrial; Knapwell, Cambridge - power supplies for the Rail market, Normanton, Yorkshire - LED lighting and electronic systems for Rail and Infrastructure. The fourth site is Newbury, Berkshire - value-added distribution of engineered components for Rail, Aerospace and Defence. With over 160 years of UK design and manufacture, and with origins in the first ever light installed in 'Electric Avenue', Brixton; innovation is core to LPA and to the products and services supplied to our customers worldwide. For more information visit https://www.lpa-group.com CHAIRMAN'S STATEMENT Last year I reported that the Group was growing revenue in line with our strategy and 5-year plan and with a target of achieving organic revenue growth 50% higher in 2028 than in 2024. Over the last six months we have seen continued strength in our revenue performance, supported by additional opportunities generated through the efforts of a more focused sales team. Importantly, I stated that we will supplement our journey with new opportunities to acquire product lines or businesses, but always with resilient intellectual property rights embedded within them. This will enable us to leverage our technical engineering skills to best effect, the acquisition of Martek is a clear example of this strategy in action. Rail remains at the heart of our business and will continue to play a critical role in maintaining a consistent flow of work through the factories. New projects are keenly fought for in this market segment and the Government's slowdown to the deep tube projects has also had a wider impact in this sector. Therefore, our aftercare market and maintenance products are key to delivering turnover and maintaining strong customer relationships remain the life blood for generating volume. The work done in the last 6 months by the newly structured sales teams working as one group has been instrumental in growing the revenue line; especially around our distribution business. Enquiry levels for Aerospace and Aviation products remain strong and over the last six months our teams have generated new opportunities, providing increased visibility into the scale of the market potential available to us. The Red Box sales programme continues to show encouraging progress with certification across the range of product lines more than 80% complete. Plane Power product sales are building momentum, and we are seeing global demand for our 'crocodile' cable carriers. In addition, our distribution business plays an important role in supporting growth in our non-rail markets. The Board remains committed to its strategy to grow the business and is actively exploring opportunities to expand through the addition of new products and businesses. Dr Philo Daniel-Tran, our Chief Executive Officer is bringing clear vision and focus to this strategy, particularly in aerospace and defence, to create targets for our growth and importantly adding the capabilities to support her. The past year has been a period of significant transformation with an emphasis on enhancing sales and marketing, advancing engineering capabilities and operational excellence. This transformation has been successful, positioning the Group for further growth. In April, we have welcomed Nils von Essen into our boardroom. He is attending Board meetings at the behest of Mr Peter Gyllenhammer, our largest shareholder. Mr von Essen is currently employed by Peter Gyllenhammar AB. He has strong commercial experience in product management and an MSc in technical management. Robert B Horvath Chairman 29 May 2026 CEO Review LPA Group's improved performance and delivery in the second half of FY25 has continued into the first half of FY26. We continue to demonstrate the resilience of our multi-site operations and the strength of the long-term relationships we have built with our customers. We are building on the core capabilities across our business, supported by our long serving team and the addition of new talent. Together, this blend of experience and new capabilities will further strengthen our ability to drive growth and delivery. Our diversification strategy focusing on market adjacencies and innovation, will allow us to confidently navigate market dynamics, even amidst an uncertain global political landscape. We continue to broaden our portfolio to achieve a balanced order book, by combining larger contract wins with shorter-cycle recurring revenue streams. As highlighted in our Annual Report, Aviation, Aerospace, and Defence remain key strategic priorities. We are accelerating growth in Aviation through new product launches in the second half of FY26. In Aerospace and Defence, we are moving beyond value added distribution by developing organic solutions, strengthening our capabilities and long-term market position. Ongoing product rationalisation across both acquired and existing products, together with innovation for product enhancement, is creating new opportunities across all our market sectors with both new and existing customers. We have initiated an ERP (Enterprise Resource Planning) harmonisation programme to enhance operations. This initiative will integrate all aspects of the business from order entry and design through to manufacturing, customer delivery and sustainment. Aerospace and Defence has had a solid start to the year with performance in H1 FY26 ahead in absolute terms with a combination of new customer orders, alongside continued call-offs from existing programmes. LPA is working closely with emerging eVTOL (electric vertical take-off and landing) and new airline manufacturers. Securing 'designed in' positions on these prototypes will support future growth as they achieve certification and transition into production. FY26 is also expected to see further growth in Defence land vehicle solutions, and we continue to identify significant opportunities in both new and refurbishment programmes in this sub-sector. Aviation products include the Plane Power connector range for Ground Support Units, the cable carrier systems (crocodiles) and the Red Box power supply range. Managing key suppliers and completing product redesign remain key priorities as we work to fully re-establish the portfolio of products for this market segment during 2026. We are enhancing the Red Box product range in response to customer demand and regulatory compliance, with the majority of the newly improved range already released and the remaining products to be finalised by August 2026. Rail aftercare projects in the UK have slowed as the industry awaits new funding decisions and subsequent investment, especially with uncertainty around GBR (Great British Railways) and the renationalisation of the UK rail network. While H1 FY26 saw existing project wins finally moving into production, progress has slowed in H2 FY26 with several projects being deferred. We are further enhancing our business development capabilities in global growth markets in Ǫ3 FY26. Within Industrial and Infrastructure our niche range of specialist electrical 'Niphan' connectors and ATEX lighting has delivered strong demand and growth in FY26. We will now invest in more dedicated business development capability in Ǫ4 FY26, refocusing on this sector to support further growth into FY27. As outlined in our Annual Report, we successfully refinanced our debt facilities in January 2026 through a three-year revolving credit facility secured against property and receivables with Arbuthnot Latham. Revenue has grown by 45% in the first half compared to 1H 2025. This strong growth, combined with continued delays in receivables from key customers and a focus on improving supplier settlements, has resulted in an increase in gearing to 34.5%, up from 21.5% at 30 September 2025. The new facility has provided approximately £2 million of additional headroom, enabling us to support accelerated expansion and growth while we focus on generating future cash profits to reduce debt levels. As we pursue our objective of significant growth, beyond our organic growth we are also actively exploring potential acquisition targets that align with our strategic priorities. We continue to make significant progress as we invest in resilience and long-term success. With rising global demand for Aviation, Aerospace and Defence technologies, alongside expanded opportunities in global rail refurbishment and new build markets, we are well-positioned to unlock growth opportunities in the current year and the years ahead. Philo Daniel-Tran CEO 29 May 2026 CONSOLIDATED INCOME STATEMENT 6 months to As restated 6 months to Year to 31 Mar 26 31 Mar 25 30 Sept 25 Unaudited Unaudited Audited £000 £000 £000 Revenue - Continuing Operations 4 13,764 G,523 21,546 Cost of Sales (9,808) (7,581) (16,788) Gross Profit 3,G56 1,G42 4,758 Distribution Costs (1,195) (1,067) (2,104) Administrative Expenses - Exceptional (57) (49) 62 Administrative Expenses - Other 5 (2,343) (1,944) (3,948) Negative Goodwill - 640 640 Other Income 5 - - Operating Profit / (Loss) 366 (478) (5G2) Negative Goodwill - (640) (640) Non-recurring items 6 57 49 (62) Depreciation and Amortisation 615 553 1,244 Adjusted EBITDA 1,038 (516) (50) Finance Income 151 123 248 Financing Costs (135) (120) (258) Profit / (Loss) Before Tax 382 (475) (602) Taxation - 278 253 Profit / (Loss) for the Period 382 (1G7) (34G) Attributable to: - Equity Holders of the Parent 382 (197) (349) Profit / (Loss) per Share 7 - Basic 2.89p (1.49)p (2.64)p - Diluted 2.70p (1.49)p (2.64)p CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 6 months to 6 months to Year to 31 Mar 26 31 Mar 25 30 Sept 25 Unaudited Unaudited Audited £000 £000 £000 Profit / (Loss) for the Period 382 (197) (349) Other Comprehensive Income Items that will not be reclassified to profit or loss: Actuarial Gain / (Loss) on Pension Scheme 63 (297) 200 (Increase) / Decrease of Restriction of Pension Asset (47) 55 (93) Other Comprehensive Income / (Loss) 16 (242) 107 Total Comprehensive Income / (Loss) for the Period 398 (439) (242) CONSOLIDATED BALANCE SHEET As at As at As at 31 Mar 26 31 Mar 25 30 Sept 25 Unaudited Unaudited Audited £000 £000 £000 Non-Current Assets Intangible Assets 3,802 4,213 3,989 Plant Property and Equipment 4,392 5,094 4,597 Right of Use Assets 434 572 573 Deferred Tax Asset 109 123 109 Retirement Benefits 4,200 3,619 4,061 12,937 13,621 13,329 Current Assets Inventories 6,352 6,288 6,362 Trade and Other Receivables 8,320 5,546 6,474 Derivative Asset 6 80 - Current Tax Receivable - 34 23 Cash and Cash Equivalents 494 - - 15,172 11,948 12,859 Total Assets 28,109 25,569 26,188 Current Liabilities Bank Loans - (105) (109) Bank overdraft - (1,020) (806) Lease Liabilities (185) (229) (222) Deferred Consideration - (275) - Derivative Liability - - (70) Trade and Other Payables (5,534) (5,701) (6,696) Current Tax Payable (1) - - (5,720) (7,330) (7,903) Non-Current Liabilities Bank Loans (5,961) (2,300) (2,243) Lease Liabilities (43) (149) (55) (6,004) (2,449) (2,298) Total Liabilities (11,724) (9,779) (10,201) Net Assets 16,385 15,790 15,987 Equity Share Capital 1,351 1,351 1,351 Investment in Own Shares (324) (324) (324) Share Premium Account 959 959 959 Share Based Payment Reserve 62 62 62 Merger Reserve 230 230 230 Retained Earnings 14,107 13,512 13,709 Equity Attributable to Shareholders of the Parent 16,385 15,790 15,987 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share Capital Investment in Own Shares Share Premium Account Share Based Payment Reserve Merger Reserve Retained Earnings Total 2026 - 6 months (Unaudited) £000 £000 £000 £000 £000 £000 £000 At 1 October 2025 1,351 (324) 959 62 230 13,709 15,987 Profit (Loss) for the Period - - - - - 382 382 Other Comprehensive Income (Expense) - - - - - 16 16 Total Comprehensive Income (Expense) - - - - - 398 398 At 31 March 2026 1,351 (324) 959 62 230 14,107 16,385 Share Capital Investment in Own Shares Share Premium Account Share Based Payment Reserve Merger Reserve Retained Earnings Total 2025 - 6 months (Unaudited) £000 £000 £000 £000 £000 £000 £000 At 1 October 2024 1,351 (324) 959 62 230 13,951 16,229 Profit (Loss) for the Period - - - - - (197) (197) Other Comprehensive Income (Expense) - - - - - (242) (242) Total Comprehensive Income (Expense) - - - - - (439) (439) At 31 March 2025 1,351 (324) 959 62 230 13,512 15,790 Share Capital Investment in Own Shares Share Premium Account Share Based Payment Reserve Merger Reserve Retained Earnings Total 2025 -Year Audited £000 £000 £000 £000 £000 £000 £000 At 1 October 2024 1,351 (324) 959 62 230 13,951 16,229 Profit (Loss) for the Year - - - - - (349) (349) Other Comprehensive Income (Expense) - - - - - 107 107 Total Comprehensive Income (Expense) - - - - - (242) (242) At 30 September 2025 1,351 (324) 959 62 230 13,709 15,987 CONSOLIDATED CASH FLOW STATEMENT 6 months to 6 months to Year to 31 Mar 26 31 Mar 25 30 Sept 25 Unaudited Unaudited Audited £000 £000 £000 Profit / (Loss) Before Tax 382 (475) (602) Financing Costs 135 120 258 Finance Income (151) (123) (248) Operating Profit / (Loss) 366 (478) (592) Adjustments for: Amortisation of Intangible Assets 187 235 450 Depreciation of Plant, Property and Equipment 259 243 447 Depreciation of Right of Use Assets 169 75 347 Profit on Sale of Property - - (262) Loss on Sale of Plant, Property and Equipment - - 25 Negative Goodwill - (640) (640) Operating Cash Flow Before Movements in Working Capital 981 (565) (225) Movements in Working Capital: Decrease / (Increase) in Inventories 10 (107) (181) (Increase) / Decrease in Trade and Other Receivables (1,851) 182 (746) (Decrease) / Increase in Trade and Other Payables (929) (457) 424 Cash Outflow Generated from Operations (1,789) (947) (728) Income Taxes Received 24 - - Net Cash Outflow from Operating Activities (1,765) (947) (728) Investing Activities Purchase of Business Net of Cash Acquired (275) (351) (351) Purchase of Property, Plant & Equipment (17) (32) (74) Sale Proceeds from Sale of Assets - - 375 Expenditure on Intangible Assets - (125) (122) Expenditure on Capitalised Development Costs - (6) - Net Cash Outflow from Investing Activities (292) (514) (172) Financing Activities Drawdown / (Repayment) of Bank Loan 3,609 (50) (103) Principal Elements of Lease Liabilities (117) (104) (260) Interest Paid (135) (120) (258) Net Cash Inflow / (Outflow) from Financing Activities 3,357 (274) (621) Net Increase / (Decrease) in Cash and Cash Equivalents 1,300 (1,735) (1,521) Cash and Cash Equivalents at Start of Period (806) 715 715 Cash and Cash Equivalents at End of Period 494 (1,020) (806) NET DEBT An analysis of the change in net debt is shown below: Bank Loan Lease Liabilities Cash and Cash Equivalents Net Debt £000 £000 £000 £000 At 1 October 2025 2,352 277 806 3,435 Interest Costs 111 7 23 141 New Lease Obligations - 68 - 68 New Bank Loan 5,898 - (5,791) 107 Repayment of Borrowings / Lease Liabilities (2,400) (124) 2,524 - Other Cash Generated - - 1,944 1,944 At 31 March 2026 5,961 228 (494) 5,695 NOTES TO THE FINANCIAL STATEMENTS NOTE 1 BASIS OF PREPARATION These interim financial statements are for the six months ended 31 March 2026. They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 September 2025. These interim financial statements have been prepared in accordance with the requirements of UK-adopted International Accounting Standards. These financial statements have been prepared under the historical cost convention with the exception of certain items which are measured at fair value. These interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 30 September 2025. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements and are expected to be followed throughout the year ending 30 September 2026. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of judgements and estimates In preparing these interim financial statements management is required to make judgements on the application of the Group's accounting policies and make estimates about the future. Actual results may differ from these assumptions. The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those described in the consolidated financial statements for the year ended 30 September 2025. New standards and interpretation adopted by the Group There has been no impact of new standards and interpretations adopted in the period. NOTE 3 GOING CONCERN The Group's business activities and the factors likely to affect its future performance together with the Group's treasury policy, its approach to the management of financial risk, and its exposure to liquidity and credit risks are outlined fully in the Annual Report C Accounts 2025 which details trading, new financing and to a lesser extent supply chain shortages and inflationary pressures. In assessing going concern the Directors note that the Group: (i) will continue to trade profitably in the near term; (ii) has in place adequate working capital facilities for its forecast needs with its recent refinancing and strong cash management; (iii) has a strong current order book with significant further opportunities in its market place; and (iv) has proven adaptable in past periods of adversity over many years. Therefore, the Directors believe that it is well placed to manage its business risks successfully. The directors believe the recent £8.75m refinancing completed on 16 th January 2026 will create circa £2m of headroom of facilities for the group to expand more quickly and to manage growth whilst also mitigating any additional project delays, while we generate cash profits in the future to repay the debt Having assessed all aspects of the business and the likely effectiveness of mitigating actions that the Directors would consider undertaking or have undertaken, the Directors consider it remains appropriate to continue to adopt the going concern basis in the preparation of these group interim financial statements. NOTE 4 OPERATING SEGMENTS All the Group's operations and activities are based in, and its assets located in, the United Kingdom. For management purposes the Group comprises three product groups (in accordance with IFRS 8) - LPA Connection Systems (electro-mechanical), LPA Lighting Systems (lighting C electronics) systems and LPA Channel Electric (value add distribution), which collectively design, manufacture and market industrial electrical and electronic products. They operate across three market segments - Rail; Aerospace C Defence, Industrials and Other. It is on this basis that the Board of Directors assess Group performance. The revenue split is as follows: 6 months to 6 months to Year to 31 Mar 26 31 Mar 25 30 Sept 25 Unaudited Unaudited Audited Electro-mechanical 5,156 3,883 8,141 Lighting and electronics 4,816 3,546 8,112 Value add distribution 3,792 2,094 5,293 13,764 9,523 21,546 All revenue originates in the UK. An analysis by market segments and geographical markets is given below: 6 months to 6 months to Year to 31 Mar 26 31 Mar 25 30 Sept 25 Unaudited Unaudited Audited Rail 69% 64% 66% Aviation 12% 19% 17% Aerospace and Defence 10% 12% 11% Industrial & Other 9% 5% 6% 100% 100% 100% United Kingdom 61% 57% 53% Rest of Europe 26% 33% 35% Rest of the World 13% 10% 12% 100% 100% 100% NOTE 5 ADMINISTRATION COSTS - OTHER Administration costs are higher between half years due to the impact of the Martek acquisition and the costs of establishing the correct operating team. NOTE 6 NON-RECURRING ITEMS The non-recurring item of £57,000 (2025:£49,000) relates to cost relating to group reorganisation / staff changes. The non-recurring item in the year to 30 September 2025 related to the profit on the sale of a property, the acquisition of the trading assets of Martek Power and group reorganisation / staff changes costs. NOTE 7 EARNINGS / (LOSS) PER SHARE The calculations of earnings/(loss) per share are based upon the earnings/(loss) after tax attributable to ordinary equity shareholders and the weighted average number of ordinary shares in issue during the period, less investment in own shares. Details are as follows: 6 months to 6 months to Year to 31 Mar 26 31 Mar 25 30 Sept 25 Unaudited Unaudited Audited Profit / (Loss) for the period - £000 382 (197) (349) Weighted average number of ordinary shares in issue during the period (thousand) 13,213 13,203 13,213 Dilutive effect of share options (thousand) 928 - - Number of shares for diluted earnings per share (thousand) 14,141 13,203 13,213 Basic earnings / (loss) per share 2.89p (1.49)p (2.64)p Diluted earnings / (loss) per share 2.70p (1.49)p (2.64)p Basic and diluted earnings per share are based on the weighted average number of ordinary shares and share options in issue during the period. For the period ended 31 March 2025 and 30 September 2025, the basic and diluted loss per share is equal since where a loss is incurred the effect of outstanding share options and warrants is considered anti-dilutive and is ignored for the purpose of the loss per share calculation. NOTE 8 RESTATEMENT OF HY 2025 INCOME STATEMENT We have reclassified some costs from Cost of Goods sold to Administration Expenses - Other in the half year 2025, so all three periods shown are all on a comparable basis. NOTE G INFORMATION LPA Group Plc is the Group's ultimate parent company. It is incorporated in England and Wales and domiciled in the UK, Company Number 686429. The address of LPA Group Plc's registered office, which is also its principal place of business, is Light C Power House, Shire Hill, Saffron Walden, CB11 3AǪ, UK. LPA Group Plc's shares are quoted on the AIM market of the London Stock Exchange. LPA Group Plc's consolidated interim financial statements are presented in Pounds Sterling (£000), which is also the functional currency of the parent company. These interim financial statements have been approved for issue by the Board of Directors on 29 May 2026. The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 30 September 2025 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unmodified and did not contain statements under Section 498(2) or Section 498(3) of the Companies Act 2006. Copies of this Interim Report are being sent to shareholders who have requested to receive a hard copy. Shareholders are encouraged to access copies which are available on the Company's website ( www.lpa-group.com ) .. A printout of the Interim Report will also be available by request from the Company's Registrar, or the Company's registered office, address as above or by email: [email protected] . Shareholders are encouraged to visit our website where useful links and assistance have been provided, including our Registrars, to assist utilisation of digital channels and receipt of future dividends and our Brokers who provide equity research.