**Summary of LPA Group PLC Final Results for the Year Ended 30 September 2025**
**Financial Highlights**
**Order Entry** Increased to £28.77 million in 2025 from £17.259 million in 2024.
**Order Book** Grew to £32.498 million in 2025 from £25.274 million in 2024.
**Revenue** Declined to £21.546 million in 2025 from £23.546 million in 2024.
**Operating Loss** Narrowed to £0.592 million in 2025 from £0.626 million in 2024.
**Adjusted EBITDA** Turned negative to £0.050 million in 2025 from a profit of £0.840 million in 2024.
**Loss Before Tax** Slightly increased to £0.602 million in 2025 from £0.593 million in 2024.
**Basic Loss Per Share** Worsened to (2.64)p in 2025 from (2.46)p in 2024.
**Gearing** Increased to 21.5% in 2025 from 13.1% in 2024.
**Operational Highlights**
**New CEO** Philo Daniel-Tran appointed on 2 January 2025.
**Acquisition** Successfully acquired Eatons Powertron business in March 2025, followed by integration.
**Market Diversification** Increased revenue from Aviation, Aerospace, and Defence to 28% in 2025 from 25% in 2024.
**"One LPA" Initiative** Streamlined and consolidated functions across all sites to improve operational efficiency, eliminating the divisional structure.
**Rebrand and Leadership Changes** Rebranded the company and appointed new executives to refocus on innovation, quality, and cost-effective engineering solutions.
**Profitability** Achieved profitability in the first quarter of 2026 for the first time in over four years, with confidence in meeting fiscal year expectations.
**Chairmans Statement**
**Strategic Transformation** The year marked a significant transformation into a single business entity, with the "One-LPA" vision driving operational consolidation and efficiency.
**Order Growth** Secured £28 million in new orders, with a significant portion deliverable in 2026.
**Operational Resilience** Focused on reducing back orders and improving on-time delivery to customers.
**Market Expansion** Increased focus on Aerospace and Defence, now comprising 28% of turnover, up from 13% three years ago.
**Financial Position** Despite increased gearing due to 2025 losses, the balance sheet remains strong with comfortable headroom post-refinancing.
**Outlook** Optimistic about 2026 with a strong pipeline and strategic focus on sustainable products and market diversification.
**CEOs Review**
**Reorganization and Efficiency** The "One-LPA" vision unified the company, improving operational efficiency and customer focus.
**Market Diversification** Successfully expanded into Aviation, Aerospace, and Defence, reducing reliance on rail projects.
**Innovation and Growth** Increased investment in core technologies and digital capabilities to support long-term growth.
**Global Partnerships** Strengthened distribution networks and supply chain resilience to support global expansion.
**People Development** Focused on career development, apprenticeship programs, and community engagement to build a strong workforce.
**Financial Review**
**Revenue Decline** Revenue decreased by 8.5% due to project delays and lower aviation product sales.
**Cost Management** Increased distribution and administrative expenses by 5.6% due to economic pressures, but employment costs remained stable.
**Cash Flow** Net cash outflow from operating activities was £0.7 million, with a focus on managing working capital and refinancing to support growth.
**Balance Sheet** Gearing increased to 21.5%, with net debt rising to £3.4 million due to trading losses and increased trade receivables.
**Refinancing** Completed a £8.75 million refinancing in January 2026 to create headroom for expansion and growth management.
**Strategic Outlook**
**Market Focus** Continued emphasis on Aviation, Aerospace, and Defence, with rail providing stability.
**Innovation** Investment in digital transformation and core technologies to enhance product offerings and customer solutions.
**Global Expansion** Strengthening global partnerships and distribution networks to capture international opportunities.
**Sustainability** Commitment to environmental, social, and governance (ESG) practices, including carbon neutrality and community engagement.
**Conclusion**
LPA Group PLC has undergone significant strategic and operational transformations in 2025, positioning itself for sustainable growth in 2026 and beyond. Despite short-term financial challenges, the company has strengthened its market position, diversified its revenue streams, and improved operational efficiency. With a strong order book, robust balance sheet, and focused leadership, LPA is well-prepared to capitalize on emerging opportunities in its core markets.