What to do Record levels, potentially very pleasing, significant new contracts, strong performance in the medium term, we face the future with confidence… It doesn’t get too much better than that in my book! “In my commentary published in January, I reported that the current year had started quietly, with delays to some major rail projects including Crossrail, with demand expected to pick up substantially as the year progresses. As expected, the results for the first half will be affected by these delays. However, we now have delivery schedules for the delayed programmes and have won new contracts, which, as and when delivery dates are confirmed, should make the work load for the second half and the medium term potentially very pleasing. Order intake for the first five months of the financial year is at record levels. Our businesses have all won significant new contracts, in home as well as export markets, for rail vehicle under frame structures, lighting systems and passenger power outlets. In particular LPA Lighting Systems have been selected to supply products for a large French high-speed double decker train programme. Bidding activity remains high, filling our funnel of opportunities and our pipeline of potential orders. Our distribution business, LPA Channel Electric, is performing particularly well. In due course, these factors should combine to give us confidence that the year as a whole will be satisfactory and result in a strong performance in the medium term. I am very pleased to report that our new board structure is working well, with renewed energy and enthusiasm. We face the future with confidence.”
What to do I have bought a few at between 98-102p recently, only a few with a medium to long term view. Future investment in rail seems like a logical next step but has been kicked down the tracks for so long it is by no means certain. IF the investment materialises, and IF LPA can get a decent share of it the future could be bright. With only 12 million shares in issue we could catch a rocket if they manage to land a big contract. Brexit is obviously a ‘known unknown’ but there should be plenty of revenue for us from the UK market alone, just so long as the money is found for investment and we pick up some of the work.
RNS: HY Report - Order entry decreased 43.4% [link]
Re: What to do Bought into these last week i like the products they supply, they are not a one product company but quite diverse in product offering. The downside for me was today reading Mr Junckers proposals for the supply of manufactured products to companies from the UK to EU he proposes they find alternative suppliers, within EU manufacturing areas, hardly an even handed approach to trade before we even leave , remainers think on for the future do you really want to be a part of this un-elected, distasteful, shower with delusions of all consuming power. regardsPS i supported leave haha
Re: What to do In Europe talk when back but I agree its frustrating. I have bought the dips. I hope its a matter of time!Tiger
Re: What to do Hi Tiger,You referenced speaking to the board, if you did have you anything you can share?I am a holder of LPA, just wish they could improve their news flow and content.....A contract win or two would be nice also!wm.
What to do You have an above average holding for a private investor and the Company might take some notice of you. LPA is not one of my larger holdings but I did invest some of my various family's funds into LPA, again on a modest basis. I only really keep them out of a sense of frustration that they should be capable of a much, much better performance and I live in hope that someone will rejuvenate the management, since I believe they have good technical skills. Anyway, old age has caught up with me and will rest for now and see what transpires over the next few months.
Re: What to do I am holding 2.1% and happy to support that.We need a clear message that has been lacking since the last results.That said I bought more today at 1.55I started buying at 34p.It will just shoot up one day!Tiger
What to do Although there is growth in the rail sector, I for one, do not know to what extent LPA will benefit over, say, the next five years and whether any such growth enables there to be longer term security such as lifetime care contracts aka Rolls Royce.As mentioned in an earlier post, I have written to the CEO about my concerns but no sign of any action and although SP seems better value by the day, this is not nesessarily so without our having a growth strategy.What to do. Sell out/buy more/ write again to Chairmen/CEO ( who are, in effect, the Board/ put motions to next AGMHaving held for such a long time, I am loathe to sell and believe it would be helpful if other shareholders could write to the Company expressing their concerns, especially over a growth plan and management succession. I will do so again later on and may try putting motions to the next AGM but that is a year away.
Rail Industry growth increasing The badly worded update made no reference to the increasing growth rate of the UK RailwaysThe slide in the SP to 160p has indeed left LPA now in a position where a bid of 240p would represent a 50% premium to the SP today and would probably get the nod of approval from the BODNot good enough BOD ..... a RNS is needed to explain the bad wording that has done harm to the share price and put the company in a vulnerable positionNumber of UK train journeys has doubled since 1997, report findsRail Delivery Group says about 1.6bn passenger rail journeys were made in last 12 months, up from 800m in late 1990s[link] this Railways growth is set to continue for the next 10 years and more''Network Rail aims to cut delays and add services in £47bn five-year planThe network operator is targeting an increase in rail services by 1,000 a day by 2021 in its "ambitious but realistic plan".[link] trains will in future use the technology, developed by Siemens and operating on Network Rails new digital signalling system, to run between London St Pancras and London Blackfriars at a rate of a train every two to three minutes a frequency never before achieved on Britains railways.Automation will make this core north-south connection across the capital the new heart of the regions railway network. It will serve 80 more stations than today on 12 separate routes, helping create capacity for up to 60,000 more people in each peak and speeding journeys for hundreds of thousands of passengers.''Thameslink Programme launches UKs first self-drive mainline train[link] newsDigital signals planned to ease commuter squeeze with more trains running per hour[link]
Re: Still no strategy for sustainable growth I agree it was once again a badly worded statement.We have no guidance as to this year and no sight of a revised broker note. Caution is the word they use too much. Why can we not maintain the new higher levels? I think a five year plan would be good and maybe freshen up the board. I certainly will not be selling under current fair value of 250pWe are wide open to a bid in my opinionTiger
Still no strategy for sustainable growth This such a frustrating company. It seems to have the technical capabilities to become a good growth stock but appears to have no focused plan on how to get there.The AGM statement was a rambling, and confusing, series of observations. Why, when, at last, a good trading year without property sales profits, appears on the cards, we are told this is exceptional and might not be sustainable. Why not and does that mean we are going backwards again. At the same time as saying the new level might not be sustainable, it says that the company has established a new level. What new level is that.What will happen when the railway boom, if that is what it is, comes to an end. I really think that a new younger and better balanced management is needed or the company absorbed by a bigger group that can better harness its skills.I am in my usual state of thinking of selling but normally take succour from Tiger's optimism which we have not seen of late. I will try another letter to the Chairman and feel like tabling some resolutions for the next AGM or saying good bye.
AGM Statement Yesterday's AGM statement confirms this year to be an excellent one, but at the same time appears to contain a veiled gentle profit warning for next year?ws
Re: AGM like I am in Switzerland.Tiger
AGM Yes, Tiger, the AGM is a week on Wednesday. After the preliminary results announcement, I wrote to Mr Pollock along the lines of my earlier post here, asking what the management succession plans were, the need for a technical director and at least one female on the Board. Additionally, we needed to see a vision as to how the company could grow from its very small company base. I received a reply thanking me for the letter and saying that the Board were going to consider it at their meeting that day. I am hoping that the AGM, which I am unable to attend, will address some or all of these matters.