LPA GROUP PLC – RESULT OF AGM

At today’s Annual General Meeting, all resolutions were duly passed.

Michael Rusch, Chairman, made the following comments on current trading:  

“In the Annual Report & Accounts for the year ending 30 September 2009, I reported that approximately £1.7m of anticipated sales had been removed from this year’s turnover as a result of unexpected rescheduling of deliveries against project orders by customers.

“I said then that the first half of the 2010 financial year would be disproportionately affected. The actual effect over the first five months of this financial year is that output is £1.5m behind the budget set in September 2009.

“However, the worst would appear to be behind us in that output recovered during February of this year to almost normal levels and the load for March and the rest of the financial year is at substantially higher levels than February.

“I am pleased to report that orders taken during the first five months of this financial year have exceeded budget by £1.5m, increasing our order book by £1.1m to £17.9m as at February 2010.

“Routine orders for standard products have generally remained buoyant, although Defence and Aerospace business has been slow. As previously reported, however, sub-contract work remains depressed.

“New orders in this period included £1.2m of the long anticipated contracts for Inter-car Jumpers and Lighting for the additional Pendolino Cars and Trains for the West Coast Mainline, which will total almost £2m. This represents an important reference with Alstom in Italy, where the Pendolinos will be built. Further enquiries for lighting, including our LED products, have already been forthcoming.

“Progress has been made in developing LED Lighting markets outside the rail industry, but these developments remain at an early stage.

“To what extent the damage caused by the rescheduling of contract deliveries from the first half of the 2010 financial year can be mitigated in the second half for the year as a whole still remains unclear, however, we remain confident that progress will be made from this low point in recent performance.

“I will report further on this with the half-yearly report for the six months ending 31 March 2010, which the Company will announce in June 2010.”

4 March 2010

ENQUIRIES:

“In the Annual Report I stated that given the global financial crisis, unsurprisingly, the current year had started quietly. However, while we have detected a slow down in routine orders compared with previous years, our success in winning projects is running at an all time high.

“Our LED lighting products, which give up to 15 years’ maintenance free service and save up to 45% energy compared with fluorescent, have been well received in the market and the pace of new enquiries and orders is increasing.

“We are also awaiting imminent decisions on other important rail related projects which, if favourable, will add significantly to our already record high order book.

“Delivery of major rail projects will commence during the rest of this calendar year, increase in tempo thereafter and will continue to run for at least three years.

“We have reviewed our outsourcing contracts and where practical we are bringing these activities in-house, which should help our sheet metal facility in particular.

“We have had a team in Australia within the last week discussing technical points on the products which are the subject of the Letter of Intent for the £4.7m LED Lighting contract and we hope to be able to make a further announcement in respect of this soon.

“The weakness of Sterling is assisting us in our export effort which is evident in some of the contracts already won.

“Our working capital remains under strict control and our bank facilities remain comfortable.

“It would be foolhardy in the present downturn to say that we look forward to the future with confidence, but our own particular position is favourable.”

MICHAEL RUSCH

Chairman

20 March 2009