LPA Group (LSE:LPA) reported a marked improvement in trading for the six months ended 31 March 2026, with revenue increasing to £13.8 million from £9.5 million in the corresponding period last year. The company also returned to profitability, posting a profit before tax of £0.4 million compared with a loss of £0.5 million a year earlier.
Adjusted EBITDA rose to £1.0 million, reflecting stronger operational performance across the business. The group’s order book remained robust at £29.3 million despite a reduction in new order intake during the period, while net assets per share increased. Gearing moved higher as the company continued to invest in initiatives designed to support future growth.
Transformation Programme Supports Operational Progress
Management attributed the improved results to the benefits of its ongoing transformation programme, which has focused on strengthening sales and marketing capabilities, enhancing engineering expertise and driving operational efficiency across the organisation.
The company highlighted the resilience of its multi-site operating model and the strength of its customer relationships as key factors underpinning performance. Efforts to improve operational excellence and streamline internal processes also contributed to the stronger financial outcome.
Diversification Strategy Expands Market Opportunities
LPA is continuing to broaden its exposure beyond its traditional rail markets by targeting growth opportunities in aviation, aerospace and defence. The company is also refining and upgrading its product portfolio to better align with evolving customer requirements across these sectors.
Alongside organic initiatives, the group is progressing an ERP harmonisation programme aimed at improving efficiency and consistency across its operations. Management also views bolt-on acquisitions, including the addition of Martek, as an important component of its long-term expansion strategy.
The company said these initiatives support expectations for full-year performance to remain in line with market forecasts.
Outlook Balances Improved Trading with Historical Financial Pressures
Although first-half results demonstrated a significant improvement, LPA’s broader financial profile continues to reflect challenges from recent years, including losses recorded during 2024 and 2025 and a notable deterioration in operating and free cash flow during 2025.
These concerns are partly offset by a relatively strong balance sheet, low leverage and continued revenue growth. Technical indicators remain supportive, with the shares trading above key moving averages and momentum measures remaining positive. However, a very high RSI reading suggests the stock could be vulnerable to a short-term pullback following recent gains.
Valuation metrics remain difficult to assess due to the company’s loss-making position on a trailing basis, while dividend information was not provided.
More about LPA Group plc
LPA Group plc is a UK-based engineering and technology company specialising in the design and manufacture of electronic and electro-mechanical systems. The group serves a range of sectors including rail, aviation, defence, infrastructure and industrial markets, supplying products engineered for demanding operating environments. Operating from four UK locations, LPA delivers solutions to customers across the UK and international markets while pursuing growth through innovation, diversification and strategic acquisitions.
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