LPA expects annual earnings ahead of market forecasts

LPA Group ($LPA-LSE) said stronger trading has continued into the second half of its financial year, lifting revenue and putting adjusted annual earnings ahead of current market expectations. The engineering business designs and manufactures electronic and electromechanical components and systems.

Reported pre-tax profit will receive a separate boost from exceptional income associated with an accelerated contract payment following a change in customer requirements. That one-off contribution should be distinguished from the improvement in adjusted earnings. Management left its following-year guidance unchanged and cited a healthy opportunity pipeline, while acknowledging inflation and macroeconomic uncertainty. The announcement does not provide a new numerical profit target, so the size of the upgrade cannot be quantified from the release alone.

Sources:

• LPA Group — trading update, RNS / Investegate