1 April 2020 – COVID-19 trading update

The high reliability LED lighting and electro-mechanical system manufacturer has reported an update on the impact of Covid-19.  A number of UK and export customers have temporarily suspended operations.  In response to this LPA Group is reducing current production capacity to match demand, reduce costs, conserve cash and utilising government support initiatives.  All three business units will remain open. Flexible working has been introduced to accommodate childcare.  Where practical staff are working from home.  Staff segregation and self-isolation precautions have also been introduced.  A significant proportion of the staff have been furloughed.  Output, which had been expected to accelerate through March to the end of the year, will now be scaled back.  Orders received have comfortably exceeded sales during the first half, so the order book has continued to grow and remains at record levels.  We rate the shares as a LONG TERM BUY at the current level.