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LPA Group PLC (GB:LPA)
LSE:LPA
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LPA Group plc (LPA) AI Stock Analysis

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GB:LPA

LPA Group plc

(LSE:LPA)

Rating:61Neutral
Price Target:
57.00p
▲(3.64%Upside)
LPA Group plc's overall score reflects a combination of steady revenue with operational and cash flow challenges. Positive technical momentum and strong corporate events provide optimism, but valuation concerns and debt levels warrant caution.

LPA Group plc (LPA) vs. iShares MSCI United Kingdom ETF (EWC)

LPA Group plc Business Overview & Revenue Model

Company DescriptionLPA 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 MoneyLPA Group plc generates revenue through the sale of its electrical and electronic components to clients in the rail, aerospace, and defense industries. The company earns income by manufacturing and supplying high-quality lighting systems, connectors, and electro-mechanical assemblies. Key revenue streams include direct sales to major transport operators and original equipment manufacturers (OEMs). Additionally, LPA Group may engage in partnerships or collaborations with other companies to expand its market reach and product offerings. The company focuses on leveraging its engineering expertise and industry experience to maintain a competitive edge in delivering innovative solutions that meet stringent industry standards and customer requirements.

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 but increasing debt requires careful management.
Income Statement
55
Neutral
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
65
Positive
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
50
Neutral
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.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue24.14M23.55M21.71M19.32M18.27M20.71M
Gross Profit5.46M5.48M4.91M4.40M3.71M4.69M
EBITDA2.08M685.00K1.79M1.96M567.00K1.49M
Net Income1.00M-325.00K859.00K1.19M-34.00K595.00K
Balance Sheet
Total Assets25.05M25.60M23.03M22.06M22.01M20.62M
Cash, Cash Equivalents and Short-Term Investments1.46M715.00K1.20M2.20M1.36M845.00K
Total Debt2.84M2.83M2.41M2.72M2.99M3.49M
Total Liabilities8.89M9.37M7.31M7.30M7.89M8.07M
Stockholders Equity16.15M16.23M15.71M14.76M14.11M12.55M
Cash Flow
Free Cash Flow672.00K108.00K89.00K-174.00K906.00K501.00K
Operating Cash Flow999.00K1.25M285.00K77.00K1.19M773.00K
Investing Cash Flow-1.15M-1.65M-566.00K1.42M-283.00K-266.00K
Financing Cash Flow162.00K-92.00K-716.00K-651.00K-393.00K-551.00K

LPA Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price55.00
Price Trends
50DMA
52.08
Positive
100DMA
52.83
Positive
200DMA
55.67
Negative
Market Momentum
MACD
0.87
Positive
RSI
74.62
Negative
STOCH
42.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LPA, the sentiment is Positive. The current price of 55 is above the 20-day moving average (MA) of 54.33, above the 50-day MA of 52.08, and below the 200-day MA of 55.67, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 74.62 is Negative, neither overbought nor oversold. The STOCH value of 42.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LPA.

LPA Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£388.31M15.8414.53%1.26%-0.29%11.71%
72
Outperform
£50.23M7.679.33%3.04%11.13%11.68%
67
Neutral
£50.23M11.209.33%2.08%11.13%11.68%
65
Neutral
£189.57M12.9115.40%4.07%16.03%-11.84%
64
Neutral
$10.64B16.526.24%2.15%3.01%-28.89%
61
Neutral
£7.27M7.61-1.39%1.74%-10.88%-122.05%
£82.42M-21.17%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:LPA
LPA Group plc
55.00
-9.50
-14.73%
GB:DWHT
Dewhurst
792.50
-288.36
-26.68%
GB:DWHA
Dewhurst
542.50
-26.27
-4.62%
GB:DIA
Dialight
206.00
31.50
18.05%
GB:LUCE
Luceco plc
123.00
-16.64
-11.92%
GB:TFW
FW Thorpe Plc
334.00
-3.54
-1.05%

LPA Group plc Corporate Events

Business Operations and Strategy
LPA Group Wins Prestigious SME Exporter in Rail Award
Positive
Jul 10, 2025

LPA Group plc has been honored with the SME Exporter in Rail Award at the Railway Industry Association’s RISE Awards 2025, highlighting its significant progress and leadership in the global rail market. This accolade underscores the company’s commitment to expanding its international presence, exporting to over 50 countries, and solidifying its position as a key player in the rail sector.

Product-Related AnnouncementsBusiness Operations and Strategy
LPA Group Secures £1.4m Rail Lighting Contracts
Positive
Jul 2, 2025

LPA Group plc has announced new contract awards valued at over £1.4 million for supplying interior lighting retrofit solutions for rail refurbishment projects with a major UK train builder and a Dutch train operator. These contracts, involving the supply of LED tubes and related components, are expected to boost the company’s manufacturing site in Yorkshire and strengthen its position in the UK and European rail aftercare market.

Business Operations and StrategyFinancial Disclosures
LPA Group Reports Strong Order Intake Amid Strategic Repositioning
Positive
Jun 19, 2025

LPA Group plc reported its interim unaudited results for the six months ending March 31, 2025, highlighting a strong order intake despite challenging market conditions. The company is strategically repositioning itself with a significant focus on aviation, aerospace, and defence, which now constitute 31% of its business. Despite delays in rail contracts, LPA remains optimistic about achieving profitability in the second half of the year and aligning with market expectations for full-year results. The company is undergoing a transformation under new CEO Dr. Philo Daniel-Tran, with a focus on a unified ‘One-LPA’ vision to enhance operational efficiency and market growth.

Business Operations and StrategyFinancial Disclosures
LPA Group Reports Strong Order Intake Amid Strategic Repositioning
Positive
Jun 19, 2025

LPA Group plc reported its interim unaudited results for the six months ended 31 March 2025, highlighting a strong order intake despite challenging conditions. The company is strategically repositioning itself, with aviation, aerospace, and defence now comprising 31% of its business. While the UK passenger rail market has posed challenges due to re-nationalisation efforts, LPA remains optimistic about future opportunities and expects to deliver a profitable second half. The company is undergoing transformation under new CEO Dr. Philo Daniel-Tran, focusing on a unified ‘One-LPA’ vision to enhance operational efficiency and market growth.

Financial Disclosures
LPA Group to Announce Interim Results for H1 2025
Neutral
Jun 12, 2025

LPA Group plc has announced that it will release its Interim Results for the six months ending 31 March 2025 on 19 June 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder confidence.

Business Operations and StrategyFinancial Disclosures
LPA Group Revises Revenue Forecast Amid Rail Contract Delays
Negative
Jun 3, 2025

LPA Group plc announced a trading update indicating a reduction in expected revenue for the financial year ending September 2025 due to revised delivery schedules for two rail contracts. This adjustment will lead to a decrease in full-year revenue to approximately £24.5 million and a projected loss of £0.5 million in profit before tax. Despite this setback, the company’s order intake remains strong, and it continues to focus on its long-term growth strategy across various markets. LPA is optimistic about future profitability and growth, especially with ongoing changes in the rail industry, such as the creation of Great British Rail.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2025