LPA Group, the AIM-listed manufacturer of electronic and electromechanical components for the rail, aviation and defence sectors, saw its shares surge more than 11% on Friday after telling investors that trading through the second half of its financial year has been strong enough to push full-year earnings ahead of expectations.
In a trading update published at 6am on Friday, the company said adjusted earnings for the year to 30 September 2026 will beat current market expectations, driven by higher revenue. Reported pre-tax profit will get a further exceptional lift from an accelerated payment on a contract, triggered by a change in a customer’s requirements. FY27 guidance was left unchanged.
The market reacted immediately. LPA shares opened at 82p and rose as high as 92p, before settling near 86.5p, up 11.6% on Thursday’s close of 77.5p. The move came on volume of just over 108,000 shares. With a market capitalisation of roughly £11.4 million and a free float of only around 6.0 million shares, LPA is thinly traded, meaning even modest buying can produce outsized percentage swings. The stock has now set a new 52-week high of 92p today, having more than doubled from its 52-week low of 34p.
Chief executive Philo Daniel-Tran said: “The strong performance achieved in the first half of the financial year has continued into the second half. As a result, I am pleased to report that the Group is now expected to achieve revenue and profits for the financial year ending 30 September 2026 ahead of previous market expectations.”
The upgrade applies to adjusted earnings, not statutory profit — a meaningful distinction for a small-cap with a history of thin or negative net income. The company did not quantify the scale of the beat, and unchanged FY27 guidance suggests, in our reading, that management is treating this year’s strength as a step change rather than a new higher run-rate just yet.
