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LPA Group PLC on Friday said it will make a ‘small trading loss’ in the year ended September 30, following a loss making first half, but said it expects to make an overall pretax profit.
Essex-based LPA Group is an LED lighting and electro-mechanical systems maker.
LPA Group said it will still make an overall pretax profit in the year, following the ‘exceptional’ gain achieved through the disposal of unused land and improved trading in the second half.
In July, LPA Group completed the sale of an undeveloped plot of land for £1.7 million to an undisclosed buyer, to support investment into its medium to long-term growth.
LPA Group made a pretax loss of £600,00 in the six months to March 31, swinging a profit of £200,000 the year before.
The company’s order book ‘remains high’ at £28 million, and LPA Group said that managing its working capital remains a key focus going forward.
Supply chain pressures remain as inflation continues to ‘dominate’ the industry, it added. Increased prices and long lead-times are impacting many products that the company supplies, LPA Group said, but the impact on the business is being managed.
‘We are continuing to transition the business as we broaden our product offering, our worldwide coverage, and the market sectors we serve. We still have a heavy dependency on projects but the foundations are being laid for more repeat routine product sales,’ LPA Group said.
‘Although we anticipate continued pressure from much of the above, we are making good progress towards re-balancing the business.’
LPA Group shares were down 2.0% at 73.00 pence on Friday in London.
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