LONDON (ShareCast) - (Sharecast News) - LPA Group cut its revenue and profit guidance for the current financial year on Tuesday, after customers revised delivery schedules for two ongoing rail contracts.
The AIM-traded engineering specialist said it now expected full-year revenue to come in at £24.5m, down from earlier forecasts by around £1.4m, with a corresponding adjusted and reported pre-tax loss of £0.5m.

It said the affected projects involved rail products destined for customers in the UK and EU, with the schedule changes impacting the timing of revenue recognition.

However, the company confirmed that the deferrals would not affect its 2026 financial outlook.

Guidance for the year ending 30 September 2026 remained unchanged at £28.5m in revenue and adjusted pre-tax profit of £0.6m.

LPA said it was continuing to execute its long-term growth strategy across core markets including transport, aerospace, defence, infrastructure, and industrial sectors, despite the short-term disruption.

"We are pleased to report that, notwithstanding the changing call off schedules on some of our rail project work, we have had very strong order intake of £17m in the first half of the current financial year, and this being predominantly for standard products," said chairman Robert B Horvath.

"We are fully committed to delivering a more robust business and I am satisfied that our strategy is working; the business remains well positioned for future profitability and to grow as we have indicated."

Horvath said there was a "huge amount of change" going on in the rail industry as the government embarked on the creation of Great British Rail, the dissolution of the franchises and its renationalisation programme.

"Change will lead to opportunity and our teams are working hard to be there and supportive of all our clients' needs."

At 1328 BST, shares in LPA Group were down 4.76% at 50p.

Reporting by Josh White for Sharecast.com.

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