LPA Group plc (LPA) AI Stock Analysis

• Market Cap: £7.27M
• Dividend Yield: 1.74%
• Average Volume (3M): 932.00
• Price to Earnings (P/E): 7.6
• Beta (1Y): -0.50
• Revenue Growth: -10.88%
• EPS Growth: -122.05%
• Country: UK
• Employees: 140
• Sector: Industrials
• Sector Strength: 76
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.01
• Shares Outstanding: 13,513,229
• 10 Day Avg. Volume: 107
• 30 Day Avg. Volume: 932
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £57.00
• Price Target Upside: 3.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• 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 Business Overview & Revenue Model

Company Description

LPA Group plc (LPA) is a UK-based company that operates primarily in the engineering and technology sectors. It specializes in the design, manufacture, and supply of electronic and electro-mechanical equipment, particularly for the transportation, aerospace, and defense industries. Core products include lighting systems, electrical distribution systems, and bespoke engineering solutions tailored to meet the specific needs of its clients. LPA is known for its commitment to innovation and quality, serving both domestic and international markets.

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 but increasing debt requires careful management.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	24.14M	23.55M	21.71M	19.32M	18.27M	20.71M
Gross Profit	5.46M	5.48M	4.91M	4.40M	3.71M	4.69M
EBITDA	2.08M	685.00K	1.79M	1.96M	567.00K	1.49M
Net Income	1.00M	-325.00K	859.00K	1.19M	-34.00K	595.00K
Balance Sheet
Total Assets	25.05M	25.60M	23.03M	22.06M	22.01M	20.62M
Cash, Cash Equivalents and Short-Term Investments	1.46M	715.00K	1.20M	2.20M	1.36M	845.00K
Total Debt	2.84M	2.83M	2.41M	2.72M	2.99M	3.49M
Total Liabilities	8.89M	9.37M	7.31M	7.30M	7.89M	8.07M
Stockholders Equity	16.15M	16.23M	15.71M	14.76M	14.11M	12.55M
Cash Flow
Free Cash Flow	672.00K	108.00K	89.00K	-174.00K	906.00K	501.00K
Operating Cash Flow	999.00K	1.25M	285.00K	77.00K	1.19M	773.00K
Investing Cash Flow	-1.15M	-1.65M	-566.00K	1.42M	-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: Positive
• Last Price: 55.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Negative
• STOCH: 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 equal to the 20-day moving average (MA) of 55.00, above the 50-day MA of 53.40, and below the 200-day MA of 55.49, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 74.62 is Negative, neither overbought nor oversold. The STOCH value of 61.90 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFW	78 Outperform	£339.48M	13.85	14.53%	1.51%	-0.29%	11.71%
DWHA	73 Outperform	£54.13M	8.83	9.33%	2.64%	11.13%	11.68%
DWHT	72 Outperform	£54.13M	11.30	9.33%	1.44%	11.13%	11.68%
Sector *	65 Neutral	£2.65B	12.63	3.41%	3.25%	2.43%	-22.02%
LUCE	65 Neutral	£188.03M	12.80	15.40%	4.08%	16.03%	-11.84%
LPA	61 Neutral	£7.27M	7.61	-1.39%	1.74%	-10.88%	-122.05%
DIA	51 Neutral	£75.82M	―	-21.17%	―	-3.32%	9.83%

LPA Group plc Corporate Events

LPA Group Wins Prestigious SME Exporter in Rail Award

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.

LPA Group Secures £1.4m Rail Lighting Contracts

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.

LPA Group Reports Strong Order Intake Amid Strategic Repositioning

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.

LPA Group Reports Strong Order Intake Amid Strategic Repositioning

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.

LPA Group to Announce Interim Results for H1 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.

LPA Group Revises Revenue Forecast Amid Rail Contract Delays

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.