LPA Group plc (LPA) AI Stock Analysis

• Market Cap: £5.68M
• Dividend Yield: N/A
• Average Volume (3M): 7.36K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.68
• Revenue Growth: -10.88%
• EPS Growth: -122.05%
• Country: UK
• Employees: 140
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.01
• Shares Outstanding: 13,513,229
• 10 Day Avg. Volume: 3,738
• 30 Day Avg. Volume: 7,356
• PEG Ratio: 0.18
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 72.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: 42.00p ▼(-2.33% Downside)

The overall stock score is primarily influenced by financial performance challenges, including profitability and cash flow issues. Technical indicators suggest a bearish trend, and valuation metrics highlight unprofitability. The lack of earnings call data and corporate events limits additional insights.

LPA Group plc Business Overview & Revenue Model

Company Description

LPA Group Plc, together with its subsidiaries, engages in the design, manufacture, and market industrial electrical and electronic products for rail, aerospace and defense, aircraft ground power, infrastructure, marine, and industrial markets primarily in the United Kingdom, rest of Europe, and internationally. It offers aircraft ground power supply equipment, such as connectors, aircraft socket assembly kits, cable assemblies, load banks, cable/plug test box, gateway aircraft plug, power analyzers, flanged plugs and sockets, lanyard assemblies, aircraft connectors, plane power crocodile cable carriers, flanged receptacle, and junction sleeves; magnetic proximity sensors; enclosures, panels and looms, and power outlets; circuit breakers; rectangular, filter, push-pull, hermetic, power, and circular connectors; in line cable splices and terminal junction modules; and contactors. The company also provides door switches; fans; fluorescent lighting for rail vehicles; hydraulic and pneumatic pipe clamps; LED lighting products; fire resistant connectors, flanged sockets, and guard ring plugs; and bespoke assemblies and cable harnesses, conduit boxes, appliance inlet, column power sockets, fire resistant connection boxes, marine plugs and sockets, trailing sockets, and saddle clamps. In addition, it offers passenger seat electronics and lighting kits; earth studs and straps, plugs and sockets, and terminal rails products; battery rafts, control boxes, and shore supplies; connector system, connector plug and receptacles, ethernet communication harness, mixed power and communication harness, and power harness; train jumper and refurbishment; relays; sockets for hermetically sealed relays; USB charging; and wiring accessories. In addition, it offers electronics design and manufacturing services. The company also exports its products to approximately 50 countries. LPA Group Plc was incorporated in 1961 and is headquartered in Saffron Walden, the United Kingdom.

How the Company Makes Money

LPA Group plc generates revenue through multiple streams, primarily by selling its core products and services to various sectors, including rail transportation and defense. Key revenue streams include the sale of lighting and electrical systems, custom engineering solutions, and ongoing maintenance and support contracts. The company also benefits from long-term partnerships with major clients in the transportation and aerospace sectors, contributing to a stable income base. Additionally, LPA may engage in contract manufacturing for third parties, further diversifying its revenue sources. The company's focus on research and development allows it to introduce new products, enhancing its competitive edge and driving additional sales.

LPA Group plc Financial Statement Overview

Summary

LPA Group plc shows steady revenue growth but faces challenges in profitability and cash flow management. The balance sheet is stable with moderate debt levels, but increasing debt could pose future risks.

Income Statement

LPA Group plc shows a mixed performance in its income statement. The gross profit margin has improved slightly in the latest year, but the company has been experiencing negative EBIT, indicating operational challenges. Revenue growth is steady, but the net profit margin turned negative, highlighting profitability issues.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. Stockholders' equity has increased, showing a stable growth in assets. However, the increase in total debt over the years needs careful management to prevent potential leverage risks.

Cash Flow

Cash flow analysis shows fluctuations with a decrease in free cash flow. Operating cash flow to net income ratio suggests cash generation challenges relative to reported profits. The free cash flow growth rate has been inconsistent, indicating potential cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.51M	23.55M	21.71M	19.32M	18.27M	20.71M
Gross Profit	4.81M	5.48M	4.91M	4.40M	3.71M	4.69M
EBITDA	-72.00K	685.00K	1.79M	1.96M	567.00K	1.49M
Net Income	-222.00K	-325.00K	859.00K	1.19M	-22.00K	595.00K
Balance Sheet
Total Assets	25.57M	25.60M	23.03M	22.06M	22.01M	20.62M
Cash, Cash Equivalents and Short-Term Investments	0.00	715.00K	1.20M	2.20M	1.36M	845.00K
Total Debt	3.80M	2.83M	2.41M	2.72M	2.99M	3.49M
Total Liabilities	9.78M	9.37M	7.31M	7.30M	7.89M	8.07M
Stockholders Equity	15.79M	16.23M	15.71M	14.76M	13.72M	12.55M
Cash Flow
Free Cash Flow	-511.00K	108.00K	89.00K	-174.00K	906.00K	501.00K
Operating Cash Flow	-484.00K	1.25M	285.00K	77.00K	1.19M	773.00K
Investing Cash Flow	-1.36M	-1.65M	-566.00K	1.42M	-283.00K	-266.00K
Financing Cash Flow	-509.00K	-92.00K	-716.00K	-651.00K	-393.00K	-551.00K

LPA Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LPA, the sentiment is Negative. The current price of 43 is below the 20-day moving average (MA) of 43.55, below the 50-day MA of 48.11, and below the 200-day MA of 52.38, indicating a bearish trend. The MACD of -1.34 indicates Negative momentum. The RSI at 9.10 is Positive, neither overbought nor oversold. The STOCH value of 52.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:LPA.

LPA Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFW	78 Outperform	£341.27M	13.81	13.87%	1.42%	-0.33%	4.58%
LUCE	68 Neutral	£201.29M	13.88	15.66%	3.89%	18.90%	-20.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DIA	54 Neutral	£103.63M	―	-21.17%	―	-3.32%	10.13%
LPA	45 Neutral	£5.68M	―	-1.39%	―	-10.88%	-122.05%

LPA Group plc Corporate Events

LPA Group plc Reports Lower Revenue Expectations and Property Sale

LPA Group plc has announced a trading update and property disposal for the financial year ending September 30, 2025. The company anticipates reduced revenue and earnings due to lower sales at Martek Power and delayed aerospace contract deliveries, leading to a projected full-year revenue of approximately £21.5 million and an adjusted pre-tax loss of around £1.3 million. Despite these challenges, LPA has reported a strong order intake of £27 million, supporting its future growth plans. The sale of its Thatcham property is expected to reduce net debt and contribute to exceptional income. LPA’s strategic restructuring into ‘One LPA’ is nearing completion, positioning the company for future growth amid a challenging UK manufacturing environment.

The most recent analyst rating on (GB:LPA) stock is a Hold with a £55.00 price target. To see the full list of analyst forecasts on LPA Group plc stock, see the GB:LPA Stock Forecast page.