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LPA Group plc (GB:LPA)
:LPA
UK Market

LPA Group plc (LPA) AI Stock Analysis

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GB

LPA Group plc

(LSE:LPA)

Rating:51Neutral
Price Target:
47.00p
▼(-7.84%Downside)
LPA Group plc's overall stock score of 51 reflects a challenging financial performance with profitability and cash flow issues. Bearish technical indicators and a negative P/E ratio further weigh on the score. However, strategic corporate actions and contract wins offer potential for future growth.

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

LPA Group plc Business Overview & Revenue Model

Company DescriptionLPA Group plc (LPA) is a leading UK-based company specializing in the design and manufacture of electrical and electronic components for the transport industry. The company operates primarily within the rail, aerospace, and defense sectors, offering a range of products including lighting systems, connectors, and electro-mechanical assemblies. LPA Group is known for its innovation and quality, providing solutions that enhance the efficiency and reliability of transport systems.
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.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
24.14M23.55M21.71M19.32M18.27M20.71M
Gross Profit
5.46M5.48M4.91M4.40M3.71M4.69M
EBIT
46.00K-626.00K-33.00K-168.00K-301.00K616.00K
EBITDA
2.08M685.00K1.79M1.96M567.00K1.49M
Net Income Common Stockholders
1.00M-325.00K859.00K1.19M-34.00K595.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.46M715.00K1.20M2.20M1.36M845.00K
Total Assets
25.05M25.60M23.03M22.06M22.01M20.62M
Total Debt
2.84M2.83M2.41M2.72M2.99M3.49M
Net Debt
1.39M2.12M1.20M521.00K1.63M2.65M
Total Liabilities
8.89M9.37M7.31M7.30M7.89M8.07M
Stockholders Equity
16.15M16.23M15.71M14.76M14.11M12.55M
Cash FlowFree Cash Flow
672.00K108.00K89.00K-174.00K906.00K501.00K
Operating Cash Flow
999.00K1.25M285.00K77.00K1.19M773.00K
Investing Cash Flow
-1.15M-1.65M-566.00K1.42M-283.00K-266.00K
Financing Cash Flow
162.00K-92.00K-716.00K-651.00K-393.00K-551.00K

LPA Group plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price51.00
Price Trends
50DMA
51.68
Negative
100DMA
53.60
Negative
200DMA
56.82
Negative
Market Momentum
MACD
-0.51
Negative
RSI
51.75
Neutral
STOCH
68.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LPA, the sentiment is Neutral. The current price of 51 is above the 20-day moving average (MA) of 50.85, below the 50-day MA of 51.68, and below the 200-day MA of 56.82, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:LPA.

LPA Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBTFW
78
Outperform
£361.19M14.7114.53%0.58%-0.29%11.71%
71
Outperform
£225.33M15.3415.40%4.51%16.03%-11.84%
70
Outperform
£53.13M8.158.74%4.24%11.11%8.21%
66
Neutral
$4.51B12.225.40%3.63%4.14%-12.01%
61
Neutral
£53.13M13.228.74%2.61%11.11%8.21%
GBLPA
51
Neutral
£6.74M7.61-2.03%1.74%8.45%-137.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:LPA
LPA Group plc
51.00
-15.50
-23.31%
GB:LUCE
Luceco plc
143.60
-34.45
-19.35%
GB:DWHT
Dewhurst
880.00
-292.12
-24.92%
GB:DWHA
Dewhurst
542.50
-90.63
-14.31%
GB:TFW
FW Thorpe Plc
302.50
-46.68
-13.37%

LPA Group plc Corporate Events

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.

Other
LPA Group Director Increases Shareholding
Positive
Apr 8, 2025

LPA Group plc announced that Non-Executive Director Gordon Wakeford purchased 8,500 ordinary shares at 58 pence each, increasing his total shareholding to 36,500 shares, which represents approximately 0.27% of the company’s issued share capital. This transaction may indicate confidence in the company’s future prospects and could have implications for investor sentiment and market perception.

Product-Related Announcements
LPA Group to Showcase Red Box Power Units at AERO Expo 2025
Positive
Apr 7, 2025

LPA Group plc announced its participation in the AERO Expo 2025 in Friedrichshafen, Germany, where it will showcase its Red Box ground power units for DC aircraft. These units, designed for both civil and military markets, will be used by leading aircraft manufacturers and other exhibitors to power avionics at the event, highlighting LPA’s product capabilities and performance to a significant audience of industry professionals.

Shareholder Meetings
LPA Group plc Successfully Passes All Resolutions at AGM
Positive
Mar 20, 2025

LPA Group plc announced that all resolutions were passed at its Annual General Meeting held on March 19, 2025. This outcome reflects the company’s stable governance and strategic direction, potentially reinforcing stakeholder confidence and supporting its position in the competitive engineering sector.

M&A TransactionsShareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
LPA Group plc Announces Strategic Developments and Positive Outlook at AGM
Positive
Mar 19, 2025

At the 2025 Annual General Meeting, LPA Group plc announced that its trading performance for the first five months of the financial year aligns with market expectations, with a stronger operating performance anticipated in the second half. The company has completed the acquisition of ‘LPA Martek Power’ and plans to integrate its manufacturing into existing facilities. LPA’s aviation products continue to perform well globally, and its engineering solutions business is expanding in response to changes in the military and defence markets. The UK Government’s railway re-nationalisation plans present opportunities for LPA in the aftercare rail market, with refurbishment programs expected to extend into 2030 and beyond.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
LPA Group plc on Track for Stronger Performance and Strategic Growth
Positive
Mar 19, 2025

LPA Group plc announced at its 2025 Annual General Meeting that the company is on track to meet full-year market expectations, with a stronger operating performance anticipated in the second half of the year. Recent contract awards and the completion of a strategic acquisition, ‘LPA Martek Power,’ are expected to enhance operations. The company’s aviation products are performing well globally, and its engineering solutions are expanding in the military and defence sectors. Additionally, LPA is poised to benefit from the UK’s railway re-nationalisation plans, with expected refurbishment programs extending into 2030 and beyond.

M&A TransactionsBusiness Operations and Strategy
LPA Group Completes Strategic Acquisition from Eaton Electrical
Positive
Mar 17, 2025

LPA Group plc has completed the acquisition of the UK trade and assets of a power supply provider from Eaton Electrical Products Limited. This acquisition is expected to bolster LPA’s capabilities and market position in the engineering sector, particularly in the power supply domain, potentially enhancing its service offerings and operational efficiency.

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.