AGM Statement

At the AGM of the Group to be held at 12.00 noon later today, Robert B Horvath, Chairman, will make the following statement:

"The first quarter's trading has been as anticipated. Sales levels were largely on target, good order books remain and we are seeing an increased level of activity particularly into FY25 (financial year to 30 Sept 2025). The second quarter of FY24 will be affected by late cable shipments which are now coming around the Cape but this will be made up in our third quarter.

As we announced on 20 March 2024, both LPA Connection Systems and LPA Lighting Systems have been adversely affected by a change in the call off schedules for three key Rail contracts, including the Piccadilly line underground trains scheduled for deliveries to commence to end customer in July 2025. We are working hard to analyse the impact on the business over the next 15 months and to improve our commercial position but it is clear that the return to profitability will be in our FY25 as some of the growth and profit we were planning for FY24 will have been deferred a further year. We will update the market as soon as we have clarity.

In the meantime, operational gearing with increased production volumes, together with ongoing management actions to reshape sales mix towards higher margin product lines, is improving EBITDA and cash flow from operating activities, compared to FY23. Our cash position is good, our Bank facilities have been renewed and we will pay out the deferred elements of our two recent acquisitions from cash flow. Our aviation business is growing well and while we will continue to be subject to call off schedules on our large rail projects the management team are determined to rebalance our business both organically and through further acquisitions. As a Board, as previously announced, we have recommended a restoration of dividend payments including the payment of a final dividend following the AGM later today."