LPA Group PLC
P R O V I D I N G S O L U T I O N S 
A N N U A L R E P O R T & A C C O U N T S 2 0 0 5 L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
T H E L P A G R O U P
LPA Group is a designer, manufacturer and distributor 
of electronic and electromechanical components, 
systems and equipment for the rail, aerospace, defence, 
infrastructure and general industrial markets. 
With origins at the beginning of the last century, LPA 
companies employ 200 people at four locations in the 
UK. The Group is a public limited company listed on the 
London Stock Exchange. It is headquartered close to the 
university city of Cambridge. 
LPA companies are ISO 9001 and 9002 certified by the 
British Standards Institute and are committed to the highest 
standards of quality, reliability and service. They have a 
reputation for innovation, finding solutions to customers’ 
electronic and electro-mechanical problems in benign and 
hostile environments worldwide.
• To be our customers first choice for the supply of our 
products and services
• To become a significant electronic and electro-
mechanical industrial group based on the rail, 
aerospace, defence, infrastructure and general 
industrial markets
• To grow profitably both through the development of 
our existing businesses and by acquisition
• To increase the value of the Company for our 
shareholders 
• To conduct our business honestly and ethically
• To be a good employer investing in our people for 
the long term
The Group 
Group objectives L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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F I N A N C I A L H I G H L I G H T S
For the year ended 30 September 2005
C O N T E N T S
FINANCIAL HIGHLIGHTS 1 COMPANY INFORMATION 2 CHAIRMAN’S STATEMENT 3 CHIEF EXECUTIVE’S REVIEW 4
FINANCIAL REVIEW 6 CORPORATE GOVERNANCE 8 REMUNERATION REPORT 10 REPORT OF THE DIRECTORS 13 
INDEPENDENT AUDITORS' REPORT 15 CONSOLIDATED PROFIT AND LOSS ACCOUNT 16 RECONCILIATION 
OF MOVEMENTS IN SHAREHOLDERS’ FUNDS 17 CONSOLIDATED NOTE OF HISTORICAL COST PROFITS AND 
LOSSES 17 CONSOLIDATED & COMPANY BALANCE SHEETS 18 CONSOLIDATED CASH FLOW STATEMENT 19 
NOTES TO THE FINANCIAL STATEMENTS 20 FIVE YEAR SUMMARY 44 NOTICE OF MEETING 45 FORM OF PROXY 47
2005
£'000
2004
£'000
TURNOVER 13,469 13,540
OPERATING PROFIT 370 337
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 176 143
BASIC EARNINGS PER SHARE 1.28p 1.27p
ADJUSTED EARNINGS PER SHARE 2.14p 2.13p
DIVIDENDS PER SHARE 0.50p 0.45p
GEARING 58% 66% L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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C O M P A N Y I N F O R M A T I O N
Directors
Michael Rusch (Non-Executive Chairman), 60, joined 
the Company in 1966, five years after its inception. He 
has been on the Board since 1967. He relinquished his 
executive duties in 2000. 
Peter G Pollock (Chief Executive), 59, is a chartered 
accountant, with over thirty years industrial experience.  
He joined LPA Group in April 1997. Previous positions 
include Chairman of Lionheart plc, non-executive 
director of Mentmore Abbey plc and Menvier Swain 
plc, Chairman of Valetmatic Ltd, Chief Executive of ML 
Holdings plc, Finance Director UK of Fisher Controls 
International Inc. and Financial Director of Hawker 
Siddeley Power Transformers Ltd.
Stephen K Brett (Finance Director), 49, qualified as a 
chartered accountant in 1982 with Ernst & Whinney in 
London. Before joining LPA Group in December 2000 
he held a number of financial appointments in the 
manufacturing sector, most recently as Vice President 
Finance for the Environmental Control Division of 
Invensys plc. 
John A C Goodger (Senior Independent Non-Executive 
Director), 58, is a director of N W Brown Corporate 
Finance Limited, British Business Angels Association 
Limited and The Great Eastern Investment Forum 
Limited and has been a director of a number of quoted 
and unquoted companies.
Secretary Stephen K Brett
Registered 
office
Tudor Works
Debden Road
Saffron Walden
Essex 
CB11 4AN
Registered 
number
686429
Auditors RSM Robson Rhodes LLP
Chartered Accountants
Daedalus House 
Station Road
Cambridge 
CB1 2RE
Bankers Bank of Scotland plc
123 St Vincent Street
Glasgow 
G2 5EA
Solicitors Eversheds LLP
115 Colmore Row
Birmingham 
B3 3AL
Nominated 
adviser and 
brokers
Teather & Greenwood Limited
Beaufort House 
15 St Botolph Street
London
EC3A 7QR
Financial 
advisers
Bridgewell Corporate Finance Limited
128 Queen Victoria Street
London 
EC4V 4BJ
Registrars Capita Registrars
Northern House
Woodsome Park Fenay Bridge
Huddersfield 
HD8 0LA L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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C H A I R M A N ' S S T A T E M E N T
Results
I am pleased to report that the Group has continued 
to trade profitably during the period under review. The 
year enjoyed a sound start and a relatively strong finish, 
but a weakness in load in the mid-year period restricted 
overall progress. A profit before tax of £176,000 (2004: 
£143,000) was achieved, and basic earnings per share 
were essentially unchanged at 1.28p (2004: 1.27p).
Dividends
In view of the improved cash position the directors 
recommend the payment of an increased final dividend 
of 0.35p per share (2004: 0.30p). This, together with 
the interim dividend of 0.15p per share, will make a 
total for the year of 0.50p per share (2004: 0.45p) an 
increase of 11%. Subject to approval by shareholders 
at the Annual General Meeting of the Company to be 
held at 12.00 noon on Wednesday 8 March 2006 at 
the offices of Teather and Greenwood Limited, 15 St 
Botolph Street, London, EC3A 7QR, the final dividend 
will be paid on 17 March 2006, to shareholders 
registered at the close of business on 24 February 
2006.
Authority to allot shares and authority to buy 
shares
The Agenda for the Annual General Meeting includes 
three resolutions relating to the limited authority of the 
directors to allot shares, and for the Company to make 
market purchases of its own shares:
a. The first is a resolution to renew the authority of 
the directors to allot shares generally, as defined in 
section 80 of the Companies Act 1985;
b. The second is a resolution to renew the authority 
of the directors to allot equity securities for cash 
without first offering them to existing shareholders, 
pursuant to section 95 of the Companies Act 1985; 
and
c. The third is a resolution to permit the Company to 
make market purchases, as defined in section 163 
of the Companies Act 1985, of its own shares.
These authorities are part of the portfolio of powers 
commonly granted to directors to ensure flexibility, 
should appropriate circumstances arise, to either allot 
shares, or make purchases of the Company’s own 
shares in the best interests of shareholders. Each 
authority will run through until the next Annual General 
Meeting. The directors have no present intention of 
using such authorities.
Board
Stephen Brett and Peter Pollock are the directors retiring 
by rotation and I am delighted that they have indicated 
their willingness to offer themselves for re-election at 
the Annual General Meeting. A brief curriculum vitae 
on each of them is shown on page 2.
Under the present management the Group’s strategy 
is beginning to achieve important progress. Subject to 
the afore mentioned re-election it has been agreed 
with Peter Pollock, Group Chief Executive, that his 
existing service agreement will be extended to expire in 
September 2011 when he will be aged sixty five years. 
His contract has a one year rolling notice period.
Employees
As usual, on behalf of the Board, I acknowledge that 
our most valuable asset, in all our locations, is our 
people. I take the opportunity to thank them all for their 
continued loyalty and support.
Prospects
After a good final quarter the start to the new financial 
year has been disappointing. This roller coaster effect 
has become a pattern in recent years, which will be 
eliminated when the underlying load in the long-term 
order book becomes current. Action is being taken to 
secure the many prospects available to the Group in 
sales, operational efficiency and procurement. Your 
board is hopeful of progress during the year.
Michael Rusch
Chairman
23 January 2006 L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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Trading results
The Group enjoyed a good final quarter, which resulted 
in a pre-tax profit for the year of £176,000 (2004: 
£143,000). The order book increased 12% to £8.8m. 
Sales remained static at £13.5m. The net cash inflow, 
before financing, amounted to £304,000 (2004: 
£564,000) and gearing reduced 8.4% to 57.9%. The 
interim dividend was maintained and the final dividend 
increased.
Markets
The Group’s main market remains rail vehicle builders 
in the UK, Europe and Asia and refurbishment of rail 
vehicles in the UK. Other markets include Aerospace 
and Defence, Infrastructure and General Industrial.
UK Rail
The Group remains the leading supplier of auxiliary 
battery power systems, inter-vehicle electrical 
connection systems and lighting systems for the UK 
rail vehicle building and refurbishment industry, and 
continues to supply a wide range of components and 
subsystems for new-build, refurbishment and reliability 
improvement.
The sale is made at many levels: the Train Operating 
Company (TOC), which wants reliability and low 
maintenance; the Rolling Stock Owning Company 
(Rosco), which wants low initial cost and low life cycle 
cost; and the Train Builder, which wants low initial cost, 
but which is increasingly being required to maintain the 
vehicle throughout its life. This development favours our 
commitment to quality, reliability and low life cycle cost.
Despite the upheavals in Britain’s railway industry, half 
the fleet of trains is now less than ten years old. The 
investment in new vehicles, which has been satisfied 
from suppliers in the UK as well as suppliers from 
Europe, has slowed down. Immediate UK prospects 
will be concentrated on London Underground, High 
Speed Train refurbishment, the Channel Tunnel Rail 
Link as well as some infill to existing fleets of Diesel 
Multiple Unit and Electric Multiple Unit trains. There 
is still overcapacity in Europe, particularly Germany 
and France, and continuing rationalisation must be 
expected. As anticipated in my report last year trading 
conditions have remained challenging. Delays in the 
award of contracts, especially those where we have 
been selected, continue to be a frustrating fact of life.
Low Cost Country Sources (LCCS) are also a fact 
of industrial life, which we are embracing. We are 
sourcing an increasing number of components and sub-
assemblies from LCCS, which we do in concert with our 
customers.
European Rail
The UK market is increasingly satisfied from Europe 
and elsewhere. We are using our experience of the 
particular nature and standards required in the UK rail 
industry to encourage suppliers to the UK market to use 
our products. It is not easy to replace an established 
supplier but increasingly we are making progress. We 
continue to build our relationships with Europe’s ‘big 
three’, Alstom Transport, Bombardier Transportation and 
Siemens, to whom we remain suppliers. Our reputation 
for quality and reliability is enabling us to make 
progress.
Global Rail
We have studied the market in China and have 
concluded that until the cost of maintenance increases, 
there is little prospect for our high quality, high 
reliability, and higher initial cost products. We have 
been selected for our first major contract for new build 
equipment in Taiwan. This is giving us useful exposure 
in the region where we continue to secure work in 
Australia, Hong Kong, Singapore, and Japan, as well as 
other markets such as South Africa.
C H I E F E X E C U T I V E ' S R E V I E W L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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Markets (continued)
Aerospace and Defence
The global and internationally collaborative nature of 
most aerospace projects was reported last year. The 
market remains important, but challenging for the 
Group. We continue to concentrate on the subcontract 
and spares market where our approach to quality and 
service are better rewarded.
There are a number of small and medium sized 
enterprises in the UK defence market, which present 
the Group with opportunities to supply components and 
sub-systems. This is an increasingly important market 
for the Group and we have enjoyed success with new 
customers during the year.
Infrastructure and General Industrial
The Group continues to be the leading supplier in the 
UK of Aircraft Ground Power Harnesses, which enable 
aircraft on the ground to run essential services when 
the engines are switched off. These products are used 
for civil and military applications and are also exported 
to many countries around the globe, in Europe, Asia 
and Africa.
The Group manufactures and distributes electrical cable 
management products including connectors, cleats and 
clamps together with circuit breakers, relays and cable 
tray, which are used in infrastructure, telecoms and 
general industry.
Structure and costs
The continued growth of the order book, and the 
success of the Group in new markets, reflects well on 
the sales structure, which we will continue to develop 
as market conditions change. Customer satisfaction 
continues to improve with quality and delivery being the 
most important factors. Some operational issues remain 
to be resolved. Information technology continues to 
present opportunities for the Group to progress.
Design and development
The Group’s design and development activity has 
continued to concentrate on new auxiliary power 
systems, inter car connection systems and lighting 
systems for the rail vehicle market. The most exciting 
development has been in the application engineering 
of Light Emitting Diodes (LED) in lighting systems for 
rail, defence and infrastructure applications. LED has 
significant advantages over halogen or dichroic lamps. 
The Group is investing additional resources in the 
development and marketing of this technology.
Management
There have been no material management changes 
during the year.
Prospects
The long-term prospects for the Group are good 
although short-term obstacles to progress remain. The 
Group is increasingly better placed to overcome them.
Peter Pollock
Chief Executive
23 January 2006
C H I E F E X E C U T I V E ' S R E V I E W ( C O N T I N U E D ) L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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F I N A N C I A L R E V I E W
Financial performance
Results for the year were broadly in line with those 
of 2004 with turnover falling by £0.07m (0.5%) to 
£13.47m, on which an improved operating profit of 
£370,000 was generated as compared to £337,000 last 
year.
Overall the Group’s gross margin improved by 0.9% 
from 27.5% to 28.4%. Total operating expenses at 
£3.45m were higher than the £3.39m last year, largely 
the consequence of higher sales costs, and the net 
operating margin was 2.7% (2004: 2.5%). 
Interest costs were unchanged at £194,000 with lower 
average borrowings offsetting the impact of higher 
interest rates, and the tax charge was £36,000 (2004: 
£4,000) being 13% of profit before tax and goodwill 
amortisation, with the Group continuing to benefit from 
the utilisation of its brought forward tax losses.
Resultant earnings were £140,000 (2004: £139,000) 
representing basic earnings per share of 1.28p (2004: 
1.27p). Adjusted earnings per share, which excludes 
goodwill amortisation from the calculation, was 2.14p 
(2004: 2.13p). Including the recommended final 
dividend, total dividends for the year were £55,000 
(2004: £49,000), being 0.50p (2004: 0.45p) per share, 
which is covered 2.5 times by basic earnings and 4.2 
times by adjusted earnings.
Shareholders funds increased from £4.07m to £4.15m.
Cash flow
Cash generated from operating activities in the year 
was £787,000 (2004: £948,000) the reduction being 
explained by an increase in working capital over the 
current year as compared to a decrease last year.
Capital expenditure was again focused in production 
and engineering and increased to £248,000 (2004: 
£171,000) in the year, 0.6 times depreciation (2004: 
0.4 times) reducing to net expenditure of £223,000 
(2004: £158,000) after asset disposals.
After interest costs of £183,000 (2004: £183,000), tax 
payments of £28,000 (2004: £Nil), and dividends of 
£49,000 (2004: £43,000), net cash before financing 
amounted to £304,000 (2004: £564,000).
No refinancing was required in the year and after 
repayment of £448,000 (2004: £441,000) of existing 
debt, there was a net decrease in the cash position of 
£144,000 (2004: increase of £123,000).
The Group maintains a good relationship with its 
banker and has negotiated the renewal of its existing 
facilities through to November 2006. The renewal of 
facilities after this date is not foreseen as a problem. 
In the year net debt fell to £2.40m (2004: £2.70m), 
gearing fell to 58% (2004: 66%) and at the year-
end there were £0.7m (2004: £0.7m) of un-drawn 
committed facilities available to the Group. The main 
element of the Group’s debt is funded through its term 
loan of £1.53m (2004: £1.83m) repayable over the 
next five years. L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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Treasury
The Group’s treasury policy, which operates within 
approved Board guidelines and has not changed since 
2004, seeks to ensure that adequate financial resources 
are available for the development of the Group’s 
business whilst managing its foreign currency, interest 
rate, and liquidity risks.
Operations are financed through a mixture of retained 
profits and bank borrowings with short-term flexibility 
achieved through the use of overdraft facilities.
Only 15% of sales (2004: 12%) are to overseas 
customers and the Group has not found it necessary 
to seek local finance. The Group has transactional 
currency exposure arising from normal trading activity. 
Such exposure arises from sales or purchases in 
currencies other than sterling, the functional currency of 
the Group. The Group hedges the foreign currency risk 
associated with significant future sales and purchases 
using forward exchange contracts. Experience to date 
is that any un-hedged exposure has not led to major 
exchange gains or losses.
Interest rates are managed through a mixture of fixed 
and floating rate borrowings.
The Group does not trade in derivatives or make 
speculative hedges.
Going concern
The directors have a reasonable expectation that 
the Group has adequate resources to continue in 
operational existence for the foreseeable future and 
therefore the accounts have been prepared on a going 
concern basis.
Stephen Brett
Finance Director
23 January 2006
F I N A N C I A L R E V I E W ( C O N T I N U E D ) L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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C O R P O R A T E G O V E R N A N C E
As an AIM listed company LPA Group plc is not required 
to comply with the corporate governance principles 
contained in the Combined Code, however the 
Company has regard to those principles and its activities 
in the area of corporate governance are discussed in 
the Board’s report on corporate governance below and 
in its remuneration report on pages 10 to 12.
Board composition and responsibility
The Board has four members comprising two non-
executive directors, including the Chairman, and 
two executive directors. There is a clear division of 
responsibility between the non-executive Chairman 
and the Chief Executive. John Goodger is the senior 
independent non-executive director.
Of the non-executive directors the Board only regards 
John Goodger as independent; Michael Rusch was an 
executive director before he became non-executive 
Chairman in June 2000. The non-executive directors 
are from varied backgrounds and bring with them 
a range of skills and experience in commerce and 
industry.
The Board meets at least six times during the year, 
with additional meetings being convened as necessary. 
The principal responsibilities of the Board are to agree 
overall strategy and investment policy, to approve the 
annual budget, to monitor the performance of the 
senior management and to ensure that there are proper 
internal financial controls in place. There is a formal 
schedule of matters reserved for Board approval. The 
nature and size of the Group ensures that the Board 
considers all major decisions.
Directors are subject to election by shareholders at the 
first opportunity after their appointment, and to re-
election thereafter at intervals of no more than three 
years.
All directors have access to the advice and services 
of the company secretary, who is also responsible for 
ensuring that Board procedures are followed. There 
is also a procedure in place for any director to take 
independent professional advice if necessary, at the 
Company’s expense.
Since Michael Edmonds retired in March 2005 the 
Board has operated with only one independent non-
executive director, as opposed to a minimum of two 
independent non-executive directors required by the 
Combined Code. The Board considers its present 
composition, and that of its standing committees, to 
be appropriate to its current circumstances, and that 
the cost of further non-executive directors would be 
disproportionate to the potential benefits at this point in 
time.
Board committees
The Board has two standing committees, the Audit 
Committee and the Remuneration Committee. These 
comprise the Board’s two non-executive directors, John 
Goodger (who is Chairman of both) and Michael Rusch.
The Audit Committee has written terms of reference 
and meets at least twice a year. It is responsible for 
reviewing a range of financial matters including the 
interim and final accounts, monitoring the controls 
which ensure the integrity of the financial information 
reported to the shareholders, making recommendations 
to the Board in relation to the appointment of the 
external auditor, and approving the remuneration and 
terms of reference for the external auditor. It also meets 
with the external auditor who attends its meetings when 
required to do so.
The Remuneration Committee’s responsibilities are 
described in the Board’s remuneration report on page 
10.
The composition of the Audit and Remuneration 
Committees is not in accord with the Combined Code 
which requires that they each comprise a minimum of 
two independent non-executive directors, and only John 
Goodger is regarded as independent for this purpose.
Board nominations
The Combined Code recommends that the Board 
establish a Nominations Committee to make 
recommendations to it on all new Board appointments. 
Given its size the Board has not established such a 
committee, the function being performed by the Board 
itself. The need for a Nomination Committee will 
continue to be reviewed annually. L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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C O R P O R A T E G O V E R N A N C E ( C O N T I N U E D )
Internal control
The Board has overall responsibility for the Group’s 
system of internal control, which is designed to provide 
reasonable but not absolute assurance against material 
misstatement or loss. The Board confirms that the 
system of internal control accords with the Turnbull 
Committee Guidance.
The Board has considered the establishment of 
procedures to implement the Turnbull Committee 
Guidance on internal control and in response assigned 
day-to-day responsibility for the continuous review of 
risk management to the executive directors. The Board 
received a report on risk issues and reviewed the 
effectiveness of the Group’s systems of internal controls 
in relation to financial, operational and compliance 
controls and risk management. Risk management is 
discussed formally at each Board meeting.
In addition the Board reviewed the requirement for an 
internal audit function and having regard to the size of 
the Group, the costs of such a function versus the likely 
benefit, sufficient assurance as to the functioning of the 
system of internal control, and that the circumstances 
confronting the Group remain unchanged, considered 
there was no such requirement at this time.
In relation to business risk a continuous process of 
risk assessment and reporting has been adopted. The 
executive directors report regularly to the Board on 
major business risks faced by individual operating 
units and by the Group and how it is proposed that 
those risks be managed. Through this business risks 
are assessed according to their nature and urgency 
and the Board considers what would be an appropriate 
response.
The Board has defined a formal schedule of matters 
specifically reserved for decision by it and the delegated 
authorities of its committees and the executive directors.
The Group has a clear organisation structure and 
reporting framework. Whilst the management of 
operating units exercise autonomy in the day-to-day 
running of their businesses, given the size of the Group, 
the executive directors remain close to the decisions 
made at each operating unit.
The Group has a system of budgeting, forecasting and 
reporting which enables the Board to set objectives and 
monitor performance. Each operating unit prepares 
a budget annually, which includes projections for the 
next two years. These budgets are reviewed in detail 
by the executive directors and consolidated for review 
by the Board. Forecasts are updated twice annually. 
The Group’s performance against budget and forecast 
is continuously monitored by the executive directors, 
reviewed formally by the executive directors who 
regularly attend local management meetings, and by 
the Board at least quarterly.
The Group operates an investment approval process. 
Board approval is required for all acquisitions and 
divestments.
Through the procedures outlined above the Board has 
considered all significant aspects of internal control for 
the year to September 2005 and up to the date of this 
Annual Report.
Shareholder relationships
The Board regards the Annual General Meeting as 
an important opportunity to meet and communicate 
with shareholders in general and private investors 
in particular. Directors make themselves available to 
shareholders both before and after the Annual General 
Meeting and on an ad hoc basis during the year subject 
to normal disclosure rules. In addition to the Annual 
Report, the Company issues an Interim Report to 
shareholders and has its own website at 
'www.lpa-group.com' L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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This report has not been prepared in accordance with 
the Directors’ Remuneration Report Regulations 2002 
because as an AIM listed company LPA Group plc does 
not fall within the scope of the Regulations. 
Unaudited Information
Remuneration Committee
The composition of the Remuneration Committee is 
described in the Board’s corporate governance report 
on page 8. The committee meets at least twice a year 
and its principal function is to determine executive 
remuneration policy on behalf of the Board. In addition 
the committee is responsible for supervising the various 
share options schemes and for the granting of options 
under them.
Remuneration policy
The Company’s policy is to design prudent executive 
remuneration packages to attract, motivate and retain 
directors of a high calibre and to reward them for 
enhancing value to shareholders. The performance 
measurement of the executive directors and key 
members of senior management and the determination 
of their annual remuneration package are undertaken 
by the Remuneration Committee.
There are four main elements of the remuneration 
packages of the executive directors:
• Basic annual salary and benefits;
• Annual bonus payments;
• Share option incentives; and
• Pension arrangements
The Company’s policy is that a substantial proportion 
of the remuneration of the executive directors should 
be performance related. Executive directors may earn 
annual incentive payments, based on achievement of 
budgeted projections for the financial year, together 
with the benefits of participation in share option 
schemes. The Company does not operate any long-term 
incentive schemes other than the share option schemes 
noted.
Executive directors are entitled to accept appointments 
outside the Company providing that the Chairman’s 
permission is sought.
Executive directors’ remuneration and terms of 
appointment
Executive directors’ basic salaries are reviewed by the 
Remuneration Committee annually, usually in December 
for implementation in January, and are set to reflect the 
directors’ responsibilities, experience and marketability. 
Regard is also given to the level of rewards made in the 
year to staff. The objectives that must be met for the 
financial year if a bonus is to be paid are confirmed at 
the same time. 
Peter Pollock has a service contract dated 21 April 
1997, with a rolling notice period of one year, and 
which provides that employment under the agreement 
will automatically terminate on his 60th birthday. The 
Board has formally agreed with Peter Pollock to his 
continuing in the role of Chief Executive on the terms 
specified in the agreement except that his employment 
will now automatically terminate on his 65th birthday.
As at 1 January 2006 Peter Pollock’s annual salary was 
£139,400 and he is entitled to the provision of a car or 
allowance and private health insurance. In addition he 
may also be granted options under the various Group 
share schemes and, subject to the achievement of the 
Group’s growth objectives, be entitled to payments 
under the Company’s discretionary bonus scheme. He 
is a member of the Group’s defined benefit pension 
scheme.
Stephen Brett is employed under a letter of appointment 
dated 28 November 2000 with a rolling notice period 
of one year. As at 1 January 2006 his annual salary 
was £95,000 and he is entitled to the provision of a car 
or allowance and private health insurance. In addition 
he may also be granted options under the various 
Group share schemes and, subject to the achievement 
of the Group’s growth objectives, be entitled to 
payments under the Company’s discretionary bonus 
scheme. He is a member of the Group’s defined benefit 
pension scheme.
R E M U N E R A T I O N R E P O R T L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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Non-executive directors’ remuneration and terms 
of appointment
The remuneration of the non-executive directors is 
determined by the Board as a whole and the policy is 
to pay an appropriate level of remuneration for their 
work on the Board and its committees. Non-executive 
directors are normally appointed for an initial period 
of three years. Appointments are made under a letter 
of appointment subject to retirement by rotation or 
removal under the Company’s articles of association. 
Non-executive directors do not participate in the 
Group’s share option arrangements.
Michael Rusch (non-executive chairman) has a three-
year term of office, as set out in his letter of re-
appointment dated 6 January 2004, which expires 
at the conclusion of the Company’s Annual General 
Meeting to be held in the spring of 2007. As at 1 
January 2006 he received fees of £20,100 per annum 
and he is entitled to the provision of a car or allowance 
and private health insurance.
John Goodger (non-executive director) has a three-year 
term of office, as set out in his letter of re-appointment 
dated 6 January 2004, which expires at the conclusion 
of the Company’s Annual General Meeting to be held 
in the spring of 2007. As at 1 January 2006 he received 
fees of £17,400 per annum.
R E M U N E R A T I O N R E P O R T ( C O N T I N U E D )
Information Subject to Audit
Directors’ remuneration
Directors’ remuneration for the year was as follows: 
Salaries
£'000
Fees
£'000
Benefits
£'000
Total
2005
£'000
Total
2004
£'000
Peter G Pollock 134 - 15 149 152
Stephen K Brett 92 - 14 106 111
226 - 29 255 263
Michael Rusch - 19 13 32 32
Michael A Edmonds - 8 3 11 21
John A C Goodger - 17 - 17 16
 
226 44 45 315 332
Pension entitlement
The pension scheme entitlements under the defined benefit scheme (excluding inflation and directors' contribution) are 
as follows:
Accrued pension at
30 September
Increase in 
accrued
 pension in 
Transfer value of accrued 
pension at 30 September
Increase
in transfer 
value over 
2005
£'000
2004
£'000
the year
£'000
2005
£'000
2004
£'000
the year
£'000
Peter G Pollock 29 25 4 556 427 125
Stephen K Brett 17 13 4 169 117 48 L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
12
Directors’ interests in share options
Scheme
At 1
October
 2004
At 30
 September
 2005
Option
 price
Earliest
 exercise 
date
Latest 
exercise  
date
Peter G Pollock PP Option 750,000 750,000 40p 1 Jan 2002 20 Apr 2007
EMI 100,000 100,000 59p 29 Mar 2004 28 Mar 2011
EMI 75,000 75,000 32p 31 Jan 2005 30 Jan 2012
Stephen K Brett EMI 100,000 100,000 59p 29 Mar 2004 28 Mar 2011
EMI 75,000 75,000 32p 31 Jan 2005 30 Jan 2012
EMI 75,000 75,000 13p 20 Feb 2006 19 Feb 2013
R E M U N E R A T I O N R E P O R T ( C O N T I N U E D )
No options were granted, exercised or lapsed in the 
period. Details of the share option schemes in operation 
during the year are given below.
1. The Peter G Pollock Option.  Peter Pollock has an 
option to purchase up to 750,000 shares at 40p. 
For the option to be exercised the performance 
criteria required that the aggregate growth in the 
Group’s normalised earnings per share over the 
five years to September 2001 exceeded the growth 
in the Retail Price Index by 90%. The performance 
criteria were satisfied and the option can be 
exercised up until 20 April 2007. 
2. The Unapproved Share Option scheme. There were 
no options outstanding under this scheme.  
3. Enterprise Management Incentives (EMI). In October 
2000 the rules of the Unapproved Share Option 
scheme were amended to allow it to be used as a 
basis for the grant of EMI options. The option price 
for grants under this scheme is the average of the 
market price on the three consecutive dealing days 
preceding the date of the grant. Stephen Brett and 
Peter Pollock hold options under this scheme. No 
performance criteria apply. 
4. The Approved Share Option scheme. The option 
price for grants under this scheme is the average of 
the market price on the three consecutive dealing 
days preceding the date of the grant.  No directors 
hold options under this scheme. 
The market price of the Company’s shares on 30 
September 2005 was 23.0p per share (2004: 30.5p per 
share) and the price range during the year was 16.5p 
to 39.5p (2004: 14.5p and 32.5p).
Directors’ shareholdings
Shareholdings of those serving at the year end were:
Number of ordinary shares
1 October
2004
30 September
2005
31 December
2005
Michael Rusch 808,000 808,000 808,000
Peter G Pollock 250,000 250,000 250,000
John A C Goodger 101,540 101,540 101,540
Stephen K Brett 10,000 10,000 10,000 L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
13
Directors and their interests
The current directors of the Company and brief 
biographical details are given on page 2. All directors 
served throughout the year except Michael Edmonds 
who retired from the Board at the conclusion of the 
Annual General Meeting in March 2005. A statement of 
their remuneration and interests in the ordinary shares 
of the Company and share options are set out in the 
remuneration report. No director had any material 
interest in any contract with the Group. In accordance 
with the articles of association Stephen Brett and Peter 
Pollock retire by rotation and are recommended for re-
election.
Research and development
The Group is committed to research and development 
activities to ensure its position as a market leader in 
the manufacture of electrical components in its market 
sectors.
Charitable contributions
Contributions for charitable purposes during the year 
amounted to £440 (2004: £Nil).
Disabled employees
Applications for employment by disabled persons are 
always fully considered, bearing in mind the aptitudes 
of the applicant concerned. In the event of members of 
staff becoming disabled every effort is made to ensure 
that their employment with the Group continues and 
that appropriate training is arranged. It is the policy 
of the Group that the training, career development 
and promotion of disabled persons should, as far as 
possible, be identical with that of other employees.
Payment policy
The Group agrees payment terms with its suppliers 
when it enters into binding purchase contracts. The 
Group seeks to abide by the payment terms agreed 
with suppliers whenever it is satisfied that the supplier 
has provided the goods or services in accordance with 
the agreed terms and conditions. The Group does not 
have a formal standard which deals specifically with 
payment to suppliers. The Group had 67 days (2004: 
53 days) purchases outstanding at 30 September 2005. 
The Company has minimal third party creditors.
R E P O R T O F T H E D I R E C T O R S
The directors present their annual report together with 
the audited financial statements for the year ended 30 
September 2005.
Results and dividends
The profit on ordinary activities after taxation amounted 
to £140,000 in 2005 (2004: £139,000). The directors 
recommend the payment of a final ordinary dividend 
of 0.35p (2004: 0.30p), which makes a total for the 
year of 0.50p per share (2004: 0.45p). The transfer 
to reserves in the year amounts to £85,000 (2004: 
£90,000).
Principal activities of the Group and business 
review
The principal activities of the Group continue to be 
the design, manufacture and marketing of industrial 
electrical accessories. The Group’s business is reviewed 
on pages 3 to 7.
Substantial shareholdings
As far as the directors are aware the only shareholders 
with a beneficial interest as at 31 December 2005 
representing 3 per cent or more of the issued share 
capital were:
Percentage
Mr Michael Rusch 7.41%
Mrs Ellen Rusch 7.37%
Mr Michael Winston Lott 5.77%
Mrs Marilyn I Porter 4.87%
Ernest Joseph Lott Settlement - No 2 4.07%
Mrs Harriett V Nailon 4.02%
Mrs Susan Thynne 3.91%
HSBC Global Custody Nominee (UK) 3.90%
Mrs Harriet V Nailon and Mr Michael Winston Lott also 
have a joint interest in the Ernest Joseph Lott (4.07%) 
and the Alice Maud Lott (0.51%) Settlements. L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
14
R E P O R T O F T H E D I R E C T O R S ( C O N T I N U E D )
Statement of directors’ responsibilities for the 
financial statements 
Company law in the United Kingdom requires the 
directors to prepare financial statements for each 
financial year which give a true and fair view of the 
state of affairs of the Company and the Group and 
of the profit or loss of the Group for that period. In 
preparing these financial statements, the directors are 
required to:
• select suitable accounting policies and then apply 
them consistently;
• make judgements and estimates that are 
reasonable and prudent;
• state whether applicable United Kingdom 
accounting standards have been followed, subject 
to any material departures disclosed and explained 
in the financial statements; and
• prepare the financial statements on the going 
concern basis unless it is inappropriate to presume 
that the Company will continue in business.
The directors are responsible for keeping proper 
accounting records which disclose with reasonable 
accuracy at any time the financial position of the 
Company and enable them to ensure that the financial 
statements comply with the Companies Act 1985. 
They are also responsible for safeguarding the assets 
of the Company and hence taking reasonable steps 
for the prevention and detection of fraud and other 
irregularities.
The Annual Report is available on the Company’s 
web site. The maintenance and integrity of LPA Group 
Plc’s web site is the responsibility of the directors; 
the work carried out by the auditors does not involve 
consideration of these matters and, accordingly, the 
auditors accept no responsibility for any changes that 
may have occurred to the information contained in the 
financial statements since they were initially presented 
on the web site.
Legislation in the United Kingdom governing the 
preparation and dissemination of the financial 
statements and other information included in annual 
reports may differ from legislation in other jurisdictions.
Auditors
RSM Robson Rhodes LLP are willing to continue in office 
and a resolution to reappoint them will be proposed at 
the forthcoming Annual General Meeting.
By order of the Board
Stephen Brett 
Secretary
23 January 2006 L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
15
We have audited the financial statements on pages 
16 to 43. We have also audited the information in the 
Directors’ Remuneration Report that is described as 
having been audited.
This report is made solely to the Company’s 
shareholders, as a body, in accordance with section 235 
of the Companies Act 1985. Our audit work has been 
undertaken so that we might state to the Company’s 
shareholders those matters we are required to state to 
them in an auditors’ report and for no other purpose. 
To the fullest extent permitted by law, we do not accept 
or assume responsibility to anyone other than the 
Company and the Company’s shareholders as a body, 
for our audit work, for this report, or for the opinions 
we have formed.
Respective responsibilities of directors and 
auditors
The directors’ responsibilities for preparing the Annual 
Report and the financial statements in accordance 
with applicable law and United Kingdom Accounting 
Standards are set out in the Statement of Directors’ 
Responsibilities.
Our responsibility is to audit the financial statements 
and the part of the Directors’ Remuneration Report 
to be audited in accordance with relevant legal and 
regulatory requirements and United Kingdom Auditing 
Standards. We report to you our opinion as to whether 
the financial statements give a true and fair view and 
whether the financial statements and that part of the 
remuneration report to be audited have been properly 
prepared in accordance with the Companies Act 1985. 
We also report to you if, in our opinion, the Directors’ 
Report is not consistent with the financial statements, 
if the Company has not kept proper accounting 
records, if we have not received all the information and 
explanations we require for our audit, or if information 
specified by law regarding directors’ remuneration and 
transactions with the Company and other members of 
the Group is not disclosed.
We read other information contained in the Annual 
Report and consider whether it is consistent with the 
audited financial statements. The other information 
comprises the Financial Highlights, Chairman’s 
Statement, Chief Executive’s Review, Financial Review, 
Corporate Governance, Remuneration Report, Report of 
the Directors and the Five Year Summary. We consider 
the implications for our report if we become aware of 
any apparent misstatements or material inconsistencies 
with the financial statements. Our responsibilities do not 
extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with United 
Kingdom Auditing Standards issued by the Auditing 
Practices Board. An audit includes examination, on a 
test basis, of evidence relevant to the amounts and 
disclosures in the financial statements and the part 
of the remuneration report to be audited. It also 
includes an assessment of the significant estimates and 
judgements made by the directors in the preparation of 
the financial statements, and of whether the accounting 
policies are appropriate to the Group’s circumstances, 
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all 
the information and explanations which we considered 
necessary in order to provide us with sufficient evidence 
to give reasonable assurance that the financial 
statements and the part of the remuneration report 
to be audited are free from material misstatement, 
whether caused by fraud or other irregularity or error. 
In forming our opinion we also evaluated the overall 
adequacy of the presentation of information in the 
financial statements and the part of the Directors’ 
Remuneration Report to be audited.
Opinion
In our opinion the financial statements give a true 
and fair view of the state of affairs of the Company 
and the Group as at 30 September 2005 and of the 
Group’s profit for the year then ended and the financial 
statements and the part of the Directors’ Remuneration 
Report to be audited and have been properly prepared 
in accordance with the Companies Act 1985.
RSM Robson Rhodes LLP
Chartered Accountants and Registered Auditors
Cambridge, England
23 January 2006
INDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS OF LPA GROUP PLC L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
16
For the year ended 30 September 2005
Note
2005
£'000
2004
£’000
Turnover 2 13,469 13,540
Cost of sales (9,645) (9,815)
Gross profit 3,824 3,725
Net operating expenses 3 (3,454) (3,388)
Operating profit 4 370 337
Net interest payable and similar charges 6 (194) (194)
Profit on ordinary activities before taxation 176 143
Tax on profit on ordinary activities 7 (36) (4)
Profit on ordinary activities after taxation 140 139
Dividends on equity shares 8 (55) (49)
Transfer to reserves 85 90
Earnings per share 9
Basic 1.28p 1.27p
Diluted 1.27p 1.27p
Adjusted (before amortisation of goodwill) 2.14p 2.13p
All activities are continuing.
There were no gains or losses in either year other than those recognised in the profit and loss account and as a 
result no statement of total recognised gains and losses is presented. 
C O N S O L I D A T E D P R O F I T A N D L O S S A C C O U N T L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
17
For the year ended 30 September 2005
Group Company
2005
£’000
2004
£’000
2005
£’000
2004
£’000
Profit / (loss) for the financial year 140 139 (462) (367)
Dividends (55) (49) (55) (49)
Net increase / (reduction) in shareholders’ funds 85 90 (517) (416)
Opening equity shareholders’ funds 4,068 3,978 4,409 4,825
Closing equity shareholders’ funds 4,153 4,068 3,892 4,409
R E C O N C I L I A T I O N O F M O V E M E N T S I N S H A R E H O L D E R S ’ F U N D S
C O N S O L I D A T E D N O T E O F H I S T O R I C A L C O S T P R O F I T S A N D L O S S E S
There is no material difference between the profit before taxation and the retained profit for the year as shown in 
the profit and loss account and their historical cost equivalent.
For the year ended 30 September 2005 L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
18
At 30 September 2005
C O N S O L I D A T E D A N D C O M P A N Y B A L A N C E S H E E T
Group Company
Note
2005
£’000
2004
£’000
2005
£’000
2004
£’000
Fixed assets 
Intangible assets 10 1,327 1,420 - -
Tangible assets 11 2,235 2,388 505 509
Investments 12 - - 6,159 5,300
3,562 3,808 6,664 5,809
Current assets
Stocks 13 2,604 2,491 - -
Debtors 14 3,085 2,806 2,977 4,225
Cash at bank and in hand 3 3 2 2
5,692 5,300 2,979 4,227
Creditors: Amounts falling due within one year 15 (3,874) (3,460) (4,314) (3,903)
Net current assets / (liabilities) 1,818 1,840 (1,335) 324
Total assets less current liabilities 5,380 5,648 5,329 6,133
Creditors: Amounts falling due after more than one year 16 (1,211) (1,575) (1,426) (1,721)
Provisions for liabilities and charges 19 (16) (5) (11) (3)
Net assets 4,153 4,068 3,892 4,409
Capital and reserves
Called up share capital 20 1,090 1,090 1,090 1,090
Share premium account 21 254 254 254 254
Revaluation reserve 21 313 314 313 314
Merger reserve 21 230 230 784 784
Profit and loss account 21 2,266 2,180 1,451 1,967
Equity shareholders’ funds 4,153 4,068 3,892 4,409
The financial statements were approved by the Board on 23 January 2006 and signed on its behalf by:
S K BRETT P G POLLOCK
Director Director
C O N S O L I D A T E D A N D C O M P A N Y B A L A N C E S H E E T S L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
19
Note
2005
£’000
2004
£’000
Net cash inflow from operating activities 22 787 948
Returns on investments and servicing of finance
Interest paid (169) (162)
Interest element of hire purchase and finance lease payments (14) (24)
Interest receivable - 3
(183) (183)
Taxation (28) -
Capital expenditure
Payments to acquire tangible fixed assets (248) (171)
Receipts from sale of other fixed assets 25 13
(223) (158)
Equity dividends paid (49) (43)
Net cash flow before financing 304 564
Financing
Repayment of loans 24 (306) (306)
Capital element of hire purchase and finance lease payments 24 (142) (135)
(448) (441)
(Decrease) / increase in cash 23 (144) 123
C O N S O L I D A T E D C A S H F L O W S T A T E M E N T
For the year ended 30 September 2005 L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
20
1. Accounting Policies
Basis of accounting
The financial statements are prepared in 
accordance with applicable accounting standards 
under the historical cost convention modified 
to include the revaluation of certain freehold 
properties. As permitted by section 230 of the 
Companies Act 1985, the profit and loss account 
of the parent company has not been separately 
presented in the financial statements.
FRS17 “Retirement Benefits” need not be applied 
in full until the 2006 accounts, so as in previous 
years expenses have been charged under 
SSAP24. Some additional disclosures are given 
as required by FRS17 (see note 26).
Basis of consolidation
The consolidated accounts include the accounts 
of LPA Group plc and all its subsidiaries as at 30 
September 2005 using acquisition accounting. 
The results of subsidiary undertakings acquired 
during the financial year are included from the 
effective date of acquisition.
Goodwill
Goodwill is the excess of the cost of an acquired 
entity over the aggregate of the fair values of 
that entity’s identifiable assets and liabilities. 
Goodwill relating to acquisitions made after 30 
September 1999 is shown in the balance sheet 
as an asset and amortised over its maximum 
estimated useful economic life up to a maximum 
of 20 years. In the opinion of the directors, this 
represents a reasonable estimate of the period 
over which the Group will derive economic 
benefit from the goodwill acquired as part of the 
business. In addition to systematic amortisation, 
the book value is written down to the recoverable 
amount when any impairment is identified.
As permitted by FRS10 goodwill relating to 
earlier acquisitions continues to be eliminated 
against reserves and will be expensed in the 
profit and loss account on any future disposal or 
closure of the acquired business.
Tangible fixed assets and depreciation
Depreciation is provided on all tangible fixed 
assets at rates calculated to write-off the cost 
or valuation of each asset evenly to its residual 
value over its expected useful life. Where there is 
evidence of impairment, fixed assets are written 
down to recoverable amounts. Any such write 
down would be charged to operating profit. No 
depreciation is provided on freehold land. The 
principal annual rates used are as follows:
Freehold buildings 2%
Plant, machinery and equipment 7% - 15%
Motor vehicles 20%
Furniture, fittings and office equipment 10% - 15%
Computers 20% - 33%
The transitional provisions of FRS15 were adopted 
in 2000 and accordingly the property valuations 
have not been updated. The dates of the last 
valuations are disclosed in the fixed asset note.
The part of the annual depreciation charge of 
revalued assets which relates to the surplus over 
cost is transferred from the revaluation reserve to 
the profit and loss reserve.
Stocks and work in progress
Stocks and work in progress are valued at 
the lower of cost and estimated net realisable 
value. Cost is determined on a first-in-first-out 
basis. The cost of work in progress and finished 
goods comprises materials, direct labour and 
attributable production overheads. Net realisable 
value is based on the estimated sales price after 
allowing for all further costs of completion and 
disposal.
Research and development 
All expenses incurred in connection with research 
and development are charged in the profit and 
loss account when they are incurred. 
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
21
1. Accounting Policies (continued)
Deferred taxation
Deferred tax is recognised, except as noted 
below, on timing differences that have originated 
but not reversed at the balance sheet date, 
where they result in an obligation to pay more 
tax, or a right to pay less tax in the future. Timing 
differences arise because of differences between 
the treatment of certain items for accounting and 
taxation purposes. 
In accordance with FRS19 deferred tax is not 
provided for revaluation gains on land and 
buildings, unless there is a binding agreement to 
sell them at the balance sheet date. 
Deferred tax assets are recognised to the extent 
that it is regarded as more likely than not that 
they will be recovered. 
Deferred tax is measured at the tax rates that are 
expected to apply in the periods when the timing 
differences are expected to reverse, based on tax 
rates and law enacted or substantively enacted at 
the balance sheet date. Deferred tax assets and 
liabilities are not discounted. 
Pension contributions
The Group operates both a defined benefit and 
defined contribution pension schemes.
The defined benefit scheme requires contributions 
to be made to a separately administered fund.  
The pension cost charged to the profit and loss 
account is calculated by the actuary so as to 
spread the cost of pensions over the employees’ 
working lives with the company. 
These calculations are based on the most 
recent triennial actuarial valuation of the fund.  
Variations from the regular pension costs are 
spread evenly through the profit and loss account 
over the average remaining service lives of 
current employees.
Contributions to the defined contribution pension 
schemes, which are also made to separately 
administered funds, are charged to the profit 
and loss account as they become payable in 
accordance with the rules of the scheme.
Foreign currencies
Monetary assets and liabilities expressed in 
foreign currencies are translated at the rate 
of exchange ruling at the balance sheet date 
or, if appropriate, at the forward contract rate. 
Transactions in foreign currencies are recorded 
at the rate ruling at the date of the transaction 
or, if hedged, at the forward contract rate. All 
differences are taken to the profit and loss 
account.
Leased assets
Assets obtained under finance leases and hire 
purchase contracts are capitalised in the balance 
sheet and are depreciated over their useful lives. 
The interest element of rental obligations is 
charged to the profit and loss account over the 
period of the lease. 
Rentals paid under operating leases are charged 
to income on a straight line basis over the term 
of the lease.
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
22
2. Turnover Analysis
Turnover represents amounts invoiced for products sold (excluding VAT), excluding those to other Group 
companies. All turnover originates in the United Kingdom. An analysis of turnover by geographical market is 
given below:
2005
£’000
2004
£’000
United Kingdom 11,455 11,975
Rest of Europe 1,339 1,059
Rest of World 675 506
13,469 13,540
Disclosure of segmental information is not given as the directors believe that to do so would be seriously 
prejudicial to the interests of the Group.
3. Net Operating Expenses
2005
£’000
2004
£’000
Sales and distribution costs 1,196 1,085
Administrative expenses 2,285 2,315
Other operating income (27) (12)
3,454 3,388
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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4. Operating Profit
Operating profit is arrived at after charging / (crediting):
2005
£’000
2004
£’000
Depreciation on owned assets 337 353
Depreciation on assets held under hire purchase contracts 52 74
Profit on disposal of fixed assets (13) (6)
Amortisation of positive goodwill 93 93
Operating lease rentals - plant and machinery 111 85
Operating lease rentals - land and buildings 174 174
Research and development expenditure 363  299
Auditors’ remuneration 34 34
Other services provided by auditors 15 15
5. Employees
Average monthly number of employees, including directors:
2005
No
2004
No
Production 145 141
Sales and distribution 27 26
Administration 23 25
195 192
Staff costs, including directors:
2005
£’000
2004
£’000
Wages and salaries 3,955 3,928
Social security costs 389 387
Other pension costs (see note 26) 136 139
4,480 4,454
Detailed information concerning directors’ emoluments, shareholdings and options is shown in the Board’s 
remuneration report. 
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
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6. Net Interest Payable 
2005
£’000
2004
£’000
Bank loans and overdrafts 169 162
Hire purchase contracts and finance leases 14 24
Amortisation of debt finance costs arising on acquisition 11 11
Interest payable 194 197
Interest receivable - (3)
Net interest payable 194 194
7. Taxation
2005
£’000
2004
£’000
United Kingdom Corporation Tax
Corporation tax at 30% (2004: 30%) 8 37
Over-provision in previous years (9) -
Current taxation (1) 37
Deferred taxation
Net origination and reversal of timing differences 37 (33)
Tax on profit on ordinary activities 36 4
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
25
7. Taxation (Continued)
Current tax reconciliation 2005
£’000
2004
£’000
Profit on ordinary activities before taxation 176 143
Theoretical tax at UK corporation tax rate of 30% (2004: 30%) 53 43
Effects of:
- Goodwill amortisation 28 28
- Utilisation of tax losses (54) (59)
- Accelerated capital allowances (6) (7)
- Expenditure that is not tax-deductible 13 -
- Other differences (26) 32
- Adjustments relating to prior year (9) -
Actual current taxation (1) 37
8. Dividends – All Equity 
2005
£’000
2004
£’000
Paid – interim 0.15p per share (2004: 0.15p) 16 16
Proposed – final 0.35p per share (2004: 0.30p) 39 33
55 49
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
26
9. Earnings Per Share
The calculation of earnings per share is based upon the profit after tax of £140,000 (2004: £139,000) and 
the weighted average number of ordinary shares in issue during the year of 10.903m (2004: 10.903m). The 
weighted average number of ordinary shares diluted for the effect of outstanding share options was 11.000m 
(2004: 10.979m). Adjusted earnings per share, which is disclosed to reflect the underlying performance of the 
Company, has been calculated on a profit of £233,000 (2004: £232,000) being the profit after tax for the year 
before the amortisation of goodwill. Details are as follows:
£’000
2005
Basic
pence
per
share
Diluted
pence
per
share £’000
2004
Basic
pence
per
share
Diluted
pence
per
share
Basic earnings 140 1.28 1.27 139 1.27 1.27
Amortisation of goodwill 93 0.86 0.85 93 0.86 0.84
Adjusted earnings 233 2.14 2.12 232 2.13 2.11
10. Intangible Fixed Assets 
Goodwill
£’000
Cost
At 1 October 2004 and 30 September 2005 1,841
Amortisation
At 1 October 2004 421
Charged in the year 93
At 30 September 2005 514
Net book value
At 30 September 2005 1,327
At 1 October 2004 1,420
 
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11. Tangible Fixed Assets 
Group
Freehold
land & 
buildings
£‘000
Plant,
 vehicles &
equipment
£‘000
Total
£‘000
Cost or valuation
At 1 October 2004 1,014 6,960 7,974
Capital expenditure - 248 248
Disposals - (158) (158)
At 30 September 2005 1,014 7,050 8,064
Depreciation
At 1 October 2004 125 5,461 5,586
Charged in year 15 374 389
Disposals - (146) (146)
At 30 September 2005 140 5,689 5,829
Net book value
At 30 September 2005 874 1,361 2,235
At 1 October 2004 889 1,499 2,388
Included within plant, vehicles and equipment are assets with a net book value of £380,000 (2004: £435,000), 
which are held under finance leases and hire purchase contracts. 
Cost or valuation as at 30 September 2005 is represented by:
Freehold 
land &
 buildings
£‘000
Plant,
 vehicles &
equipment
£‘000
Total
£‘000
Valuation 1980 - 423 423
  1996 544 - 544
Cost 470 6,627 7,097
1,014 7,050 8,064
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11. Tangible Fixed Assets (continued)
Company
Freehold
land &
 buildings
£‘000
Plant, 
vehicles &
equipment
£‘000
Total
£‘000 
Cost or valuation
At 1 October 2004 544 25 569
Disposals - (22) (22)
At 30 September 2005 544 3 547
Represented by:
Valuation 1996 544 - 544
Cost - 3 3
544 3 547
Depreciation
At 1 October 2004 36 24 60
Charged in year 4 - 4
Disposals - (22) (22)
At 30 September 2005 40 2 42
Net book value
At 30 September 2005 504 1 505
At 1 October 2004 508 1 509
Freehold properties
On an historical cost basis freehold land and buildings would have been included at the following amounts:
Group Company
2005
£‘000
2004
£‘000
2005
£‘000
2004
£‘000
Cost 746 746 276 276
Accumulated depreciation (185) (171) (85) (82)
561 575 191 194
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12. Investments 
Group
Details of the investments, which are all registered in England and Wales, in which the Group holds directly and 
indirectly 20% or more of the nominal value of any class of share capital are as follows:
Name of company Holding
Proportion of 
voting rights & 
shares held Nature of business
Subsidiary undertakings
Channel Electric Equipment Holdings Limited Ordinary shares 100% Holding company
Channel Electric Equipment Limited Ordinary shares 100% Electrical components
LPA Industries Limited Ordinary shares 100% Electrical components
Haswell Engineers Limited Ordinary shares 100% Metal fabrication
Excil Electronics Limited Ordinary shares 100% Electrical components
The Group also holds 100% of the ordinary share capital of the following dormant companies: Niphan Limited, 
Light and Power Accessories Company Limited, W M Engineering (Ramsden) Limited and Lazell Bros. Engineers 
Limited. 
All of the above investments are held directly by LPA Group plc with the exception of Channel Electric Equipment 
Limited (which is held by Channel Electric Equipement Holdings Limited) and Lazell Bros. Engineers Limited 
(which is held by Light and Power Accessories Company Limited). 
LPA Group plc is the sole member of LPA Industries Pension Trustees Limited, a company limited by guarantee, 
which acts as trustee to two pension schemes operated within the Group. 
Company Subsidiary
 undertakings
£’000
Cost
At 1 October 2004 5,300
Investment in LPA Industries Limited 859
At 30 September 2005 6,159
13. Stocks 
Group
2005
£’000 
2004
£’000 
Raw materials and consumables 614 703
Work in progress 1,207 1,145
Finished goods and goods for resale 783 643
2,604 2,491
There is no material difference between the balance sheet value of stocks and their replacement cost.
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14. Debtors 
Group Company
2005
£’000
2004
£’000
2005
£’000
2004
£’000
Trade debtors 2,895 2,617 - -
Amounts due from subsidiary undertakings - - 2,958 4,219
Other tax 13 - 13
Other debtors 5 3 - -
Prepayments and accrued income 172 160 6 6
Deferred taxation (note 19) - 26 - -
3,085 2,806 2,977 4,225
15. Creditors: Amounts Falling Due Within One Year 
Group Company
2005
£’000
2004
£’000
2005
£’000
2004
£’000
Debt (note 17) 1,196 1,125 2,478 2,042
Trade creditors 1,714 1,315 15 8
Amounts owed to subsidiary undertakings - - 1,731 1,743
Other tax and social security costs 414 330 - 9
Other creditors 179 181 2 2
Accruals 324 439 49 66
Dividends payable 39 33 39 33
Corporation tax 8 37 - -
3,874 3,460 4,314 3,903
16. Creditors: Amounts Falling Due After More Than One Year
Group Company
2005
£’000
2004
£’000
2005
£’000
2004
£’000
Debt (note 17) 1,211 1,575 1,181 1,476
Amounts owed to subsidiary undertakings - - 245 245
1,211 1,575 1,426 1,721
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17. Borrowing Analysis
Group Company
2005
£’000
2004
£’000
2005
£’000
2004
£’000
Due within one year
Bank loans 295 295 295 295
Bank overdraft 832 688 2,183 1,747
Hire purchase obligations 69 142 - -
1,196 1,125 2,478 2,042
Due after more than one year
Bank loans 1,181 1,476 1,181 1,476
Hire purchase obligations 30 99 - -
1,211 1,575 1,181 1,476
Total borrowings 2,407 2,700 3,659 3,518
Add: Loan issue costs 51 62 51 62
2,458 2,762 3,710 3,580
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17. Borrowing Analysis (continued)
Group Company
2005
£’000
2004
£’000
2005
£’000
2004
£’000
Repayable
Within one year 1,207 1,136 2,489 2,053
Between one and two years 324 375 305 306
Between two and five years 927 946 916 916
Over five years - 305 - 305
2,458 2,762 3,710 3,580
Repayment profile, interest and security
The £1.5 million bank loan (originally advanced in July 2000) is repayable in 20 quarterly instalments of 
£76,000 the first payment being in October 2005. Interest is payable at 1.5% over base rate.
The following security is provided to the bank:
(i)  First and only legal charge over each freehold and leasehold property owned by the Group;
(ii)  First debenture from each Group company;
(iii)  A Composite Guarantee by each Group company (as guarantor) in favour of the Bank on account of each 
Group company; and
(iv)  An assignment of Keyman Insurance on the life of Peter Pollock of £250,000.
The overdraft is secured by a fixed and floating charge on the Group’s assets. Interest is payable at 1.5% over 
base rate.
Loan issue costs
Under FRS4 the bank loan is stated net of £51,000 of issue costs (2004: £62,000). The initial issue costs of 
£108,000 are being amortised over the 10 year life of the loan.
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2005
£’000
2004
£’000
Floating rate financial liabilities 2,359 2,521
Fixed rate financial liabilities 99 241
2,458 2,762
18. Financial Instruments 
The Group’s financial instruments comprise borrowings, cash and items such as trade debtors and creditors that 
arise directly from its operations. The main purpose of these instruments is to raise finance for operations.
As permitted by FRS13 the Company has chosen to exclude short term debtors and creditors when disclosing 
details of financial instruments, other than the currency disclosures.
Further information on the Group’s objectives and policies for using financial instruments, and strategies for 
managing risk are given within the Financial Review on page 7.
Financial liabilities: excluding non-debt current liabilities
Interest rates are managed by using fixed and floating rate borrowings. The only financial liabilities of the 
Group which are subject to interest charges are bank loans and overdrafts and obligations under hire purchase 
contracts. Floating rate liabilities comprise bank loans and overdrafts which bear interest at 1.5% over base 
rate. Fixed rate liabilities comprise hire purchase contracts which bear interest at the negotiated market rate 
prevailing at the time the commitment is made. In the year the weighted average interest rate of the fixed rate 
financial liabilities was 7.6% (2004: 7.7%). The interest rate profile of the Group’s financial liabilities, all of 
which are denominated in sterling at 30 September was:
Maturity of financial liabilities
The maturity profile of financial liabilities is shown in note 17. 
Un-drawn committed facilities
The Group’s only un-drawn committed borrowing facility at 30 September 2005 and 30 September 2004 was 
its bank overdraft expiring in one year or less. The un-drawn amount at 30 September 2005 was £0.7 million 
(2004: £0.7 million).
Fair value of financial instruments
The fair value of the Group’s financial instruments is not significantly different from their book value.
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Exposure at 30 September 2005
Cash
balances 
£’000
Other net
monetary
 assets and
 liabilities
£’000
Total net
 monetary
 assets and
 liabilities
£’000
Euro 236 (236) -
US Dollar 21 (21) -
Australian Dollar - 3 3
257 (254) 3
Exposure at 30 September 2004
Cash
balances 
£’000
Other net
monetary
 assets and
 liabilities
£’000
Total net
 monetary
 assets and
 liabilities
£’000
Euro (3) 3 -
US Dollar - (35) (35)
(3) (32) (35)
18. Financial Instruments (continued)
Currency exposures
The tables below show the Group’s currency exposure; in other words, those transactional exposures that give rise to 
the net currency gains and losses recognised in the profit and loss account. Such exposures comprise the monetary 
assets and liabilities of the Group that are not denominated in sterling. The tables show the Group’s currency 
exposure after taking into account the effect of any currency hedges entered into to manage these currency exposures:
At 30 September 2005 the Group had commitments under non-cancellable forward contracts totalling 
£1,227,000 (2004: £675,000) taken out to hedge expected future foreign currency sales and purchases. 
Unrecognised losses on forward exchange contracts at 30 September 2005 were £7,000 (2004: gain £2,000). 
The losses are expected to be recognised in one year or less. The fair value of forward exchange contracts is an 
estimate of the amount the Group might expect to pay or receive on unwinding these contracts at 30 September 
2005.
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19. Provisions for Liabilities and Charges 
Group
Dilapidations 
provision
£’000
Deferred
 taxation
£’000
Total
£’000
At 1 October 2004 5 - 5
Opening deferred tax asset - (26) (26)
Charge to profit and loss account - 37 37
At 30 September 2005 5 11 16
The dilapidations provision arises out of a contractual obligation in relation to the property out of which Haswell 
Engineers Limited operates. 
Deferred taxation provided in the accounts and amounts unrecognised are as follows:
Group
Provided
Not available for set-off 
till future periods
2005
£’000
2004
£’000
2005
£’000
2004
£’000
Capital allowances in advance of 
depreciation 137 126 - -
Other timing differences (41) (68) - -
Unutilised losses (85) (84) (106) (162)
11 (26) (106) (162)
At 30 September 2005 there are unrecognised timing differences in respect of unrelieved trading losses of 
£353,000 (2004: £540,000). 
Deferred tax assets are disclosed in note 14. 
Company
The Company has the following deferred taxation provided in the accounts:
2005
£’000
2004
£’000
Capital allowances in advance of depreciation 13 10
Other timing differences (2) (7)
11 3
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20. Share Capital 
2005
£’000
2004
£’000
Authorised
15,000,000 ordinary shares of 10p each 1,500 1,500
Allotted and fully paid
10,903,229 ordinary shares of 10p each (2004: 10,903,229) 1,090 1,090
Share Options
Options to subscribe for ordinary shares of 10p each under the Company’s Share Option Schemes are as 
follows:
Scheme
Date of
grant Price Dates when exercisable
Number of shares
2005 2004
The Peter Pollock Option Apr 1997 40p 01 Jan 2002 to 20 Apr 2007 750,000 750,000
1997 Approved Share
Option scheme Jul 1998 78.7p 09 Jul 2001 to 08 Jul 2005 - 10,000
Oct 2000 85p 05 Oct 2003 to 04 Oct 2007 10,000 10,000
Enterprise Management
Incentive scheme Oct 2000 85p 05 Oct 2003 to 04 Oct 2010 105,000 105,000
Mar 2001 59p 29 Mar 2004 to 28 Mar 2011 200,000 200,000
Jul 2001 56p 01 Aug 2004 to 31 Jul 2011 27,000 32,000
Jan 2002 32p 31 Jan 2005 to 30 Jan 2012 189,000 189,000
Feb 2003 13p 20 Feb 2006 to 19 Feb 2013 190,000 190,000
Mar 2003 15p 14 Mar 2006 to 13 Mar 2013 5,000 5,000
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21. Reserves
Group Share
premium
account
£’000
Revaluation
reserve
£’000
Merger
 reserve
£’000
Profit
and loss
account
£’000
At 1 October 2004 254 314 230 2,180
Profit for the year - - - 85
Transfer - (1) - 1
At 30 September 2005 254 313 230 2,266
In accordance with FRS10 transitional rules, cumulative goodwill on acquisitions written off to reserves is 
£3,092,000 (2004: £3,092,000).
Company Share
premium
account
£’000
Revaluation
reserve
£’000
Merger
 reserve
£’000
Profit
and loss
account
£’000
At 1 October 2004 254 314 784 1,967
Loss for the year - - - (517)
Transfer - (1) - 1
At 30 September 2005 254 313 784 1,451
22. Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities
2005
£’000
2004
£’000
Operating profit 370 337
Depreciation charges 389 427
Amortisation of goodwill 93 93
Profit on sale of tangible fixed assets (13) (6)
(Increase) / decrease in stocks (113) 156
(Increase) / decrease in debtors (305) 115
Increase / (decrease) in creditors 366 (174)
Net cash inflow from operating activities 787 948
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23. Reconciliation of Net Cash Flow to Movement in Net Debt 
2005
£’000
2004
£’000
(Decrease) / increase in cash in the period (144) 123
Cash outflow from decrease in debt and lease financing 448 441
Change in net debt resulting from cash flows 304 564
Amortisation of loan costs (11) (11)
Movement in net debt in the period 293 553
Opening net debt (2,697) (3,250)
Closing net debt (2,404) (2,697)
24. Analysis of Net Debt 
At
1 October
 2004
£’000
Cash flow
£’000
Non cash
 changes
£’000
At 30
 September 
2005
£’000
Cash in hand and at bank 3 - - 3
Bank overdraft (688) (144) - (832)
(685) (144) - (829)
Bank loans (1,771) 306 (11) (1,476)
Hire purchase obligations (241) 142 - (99)
(2,697) 304 (11) (2,404)
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25. Financial Commitments
Operating lease commitments
Annual commitments under non-cancellable operating leases are as follows:
Group Land and buildings Plant and machinery
2005
£’000
2004
£’000
2005
£’000
2004
£’000
Operating leases which expire:
Within one year - - 23 15
Within two to five years - - 55 67
After more than five years 174 174 - -
174 174 78 82
Company Plant and machinery
2005
£’000
2004
£’000
Operating leases which expire:
Within two to five years 8 -
Capital commitments
Contracted for but not provided in the accounts amounted to £Nil (2004: £22,000).
26. Pension Arrangements
Defined contribution schemes
The Group operates several defined contribution schemes. The pension cost charged to the profit and loss 
account for the year in respect of these schemes was £67,000 (2004: £69,000).
Defined benefit scheme
The Group operates a defined benefit pension scheme where benefits are based on final pensionable pay. This 
pension scheme is set up under trust and the assets of the scheme are therefore held separately from those of 
the company and the Group. This scheme is closed to new entrants.
The pension cost charged to the profit and loss account is calculated by an independent actuary in such a way 
as to spread the cost of pensions over the average remaining service life of employees in membership. The 
pension costs in the year are based on the actuarial review completed with an effective date of 1 April 2003. 
The actuarial method used to calculate the pension cost was the attained age method. The most significant 
assumptions adopted were the rate of return on the investments of the scheme at 7.0% pa, the increase in 
salaries at 3.5% pa, price inflation at 3.0% pa and pension increases at 1.5% for the pre April 1997 element 
and 3.0% for the post 1997 element pa in payment. The market value of the scheme’s assets at 1 April 2003 
was £7.94m which represented 112% of the accrued liabilities.
Pension costs charged to the profit and loss account in the year were £69,000 (2004: £70,000). There is 
a balance sheet accrual at the year end of £92,000 (2004: £108,000), resulting from differences between 
amounts previously recognised through the profit and loss account and the amounts paid in contributions.
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2005 2004 
Inflation 2.90% pa 3.00% pa
Salary increases 3.40% pa 3.50% pa
Rate of discount 5.00% pa 5.50% pa
Pension increases – post April 1997 2.90% pa 3.00% pa
Pension increases – pre April 1997 non guaranteed minimum pension 1.45% pa 1.50% pa
The fair value of the scheme assets, the present value of the scheme liabilities and the expected long term rates 
of return were: 
2005 2004
Return £’000 Return £’000
Equities 8.00% pa 5,478 8.00% pa 6,006
Bonds 4.60% pa 4,895 4.85% pa 2,804
Cash and other 3.35% pa 277 3.75% pa 476
Total market value of assets 10,650 9,286
Present value of scheme liabilities (8,424) (7,755)
Surplus in the scheme 2,226 1,531
Related deferred tax liability (668) (459)
Net pension asset 1,558 1,072
All of the £1,558,000 (2004: £1,072,000) would have been shown as an asset had the Group’s balance sheet 
been prepared under FRS17.
26. Pension Arrangements (continued)
Supplementary pensions disclosures under FRS17
The profit and loss account charge for pension costs, the accounting policies and the disclosures above are 
given on the basis of SSAP24 “Pension Costs”. SSAP24 is going to be replaced by FRS17 “Retirement Benefits”. 
The additional disclosures, which follow, are given in preparation of FRS17 being adopted and relate only to 
the defined benefit scheme.
The valuation used for FRS17 disclosures has been based on the last full actuarial valuation at 1 April 2003 and 
updated to 30 September 2005 to take account of the requirements of FRS17. The assets of the scheme have 
been taken at market value and the actuarial method used to calculate the scheme liabilities was the projected 
unit method.
The major assumptions used to calculate scheme liabilities at 30 September 2005 under FRS17 are:
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26. Pension Arrangements (continued)
Supplementary pensions disclosures under FRS17 (continued)
Contributions made by the employer over the financial year were £85,000 (2004: £42,000). On completion 
of the scheme valuation as at 1 April 2003, a contribution rate equivalent to 8.4% of pensionable pay was 
established, commencing from April 2004. This replaced the nil contribution rate which had been in place since 
February 2002.
If FRS17 had been adopted in the financial statements, the Group’s net assets and profit and loss reserve at 30 
September 2005 would have been as follows:
Net assets 2005
£’000
2004
£’000
Net assets per Group balance sheet (SSAP24 basis) 4,153 4,068
Add back SSAP24 pensions accrual 92 108
FRS17 net pension asset 1,558 1,072
Adjusted net assets (FRS17 basis) 5,803 5,248
Profit and loss reserve 2005
£’000
2004
£’000
Profit and loss reserve per Group balance sheet (SSAP24 basis) 2,266 2,180
Add back SSAP24 pensions accrual 92 108
FRS17 net pension asset 1,558 1,072
Adjusted profit and loss reserve (FRS17 basis) 3,916 3,360
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26. Pension Arrangements (continued)
Supplementary pensions disclosures under FRS17 (continued)
The components of the cost in the profit and loss account and statement of total recognised gains and losses 
(STRGL) for 2005 would have been as follows: 
2005
£’000
2004
£’000
Analysis of amounts charged to operating profit
Current service cost (176) (127)
Past service costs - -
Total charged to operating profit (176) (127)
Analysis of amounts credited to other finance income
Expected return on pension scheme assets 626 573
Interest on pension scheme liabilities (422) (411)
Net credit to other finance income 204 162
Profit and loss account credit before deduction of tax 28 35
Analysis of the amounts recognised in STRGL 2005
£’000
2004
£’000
Actual return less expected return on pension scheme assets 960 360
Experience gains and losses arising on the scheme liabilities 82 81
Changes in assumptions underlying the present value of the 
scheme liabilities
(486) 443
556 884
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26. Pension Arrangements (continued)
Supplementary pensions disclosures under FRS17 (continued)
The movement in the scheme surplus during the year would have been as follows: 
2005
£’000
2004
£’000
Surplus at the beginning of the year 1,531 570
Current service cost (176) (127)
Contributions 111 42
Past service costs - -
Net finance income 204 162
Actuarial loss 556 884
Surplus at the end of the year 2,226 1,531
The history of experience gains and losses would have been as follows:
2002 2003 2004 2005
Difference between the expected and actual 
return on scheme assets
Amount (£’000) (1,791) 429 360 960
% of scheme assets (22) 5 4 9
Experience gains and losses on scheme 
liabilities
Amount (£’000) - (459) 81 82
% of the present value of scheme liabilities - 6 (1) (1)
Total amount recognised in statement of total 
recognised gains and losses
Amount (£’000) (3,449) (235) 884 556
% of the present value of scheme liabilities 47 3 (11) (7)
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2001
£‘000
2002
£‘000
2003
£‘000
2004
£‘000
2005
£'000 
Sales and results
Turnover 13,570 13,806 12,574 13,540 13,469
Operating profit / (loss) before goodwill 570 52 (4) 430 463
Amortisation of goodwill (108) (108) (93) (93) (93)
Operating profit / (loss) 462 (56) (97) 337 370
Exceptional items
Profit on sale of tangible fixed assets - - 106 - -
Profit before interest and taxation 462 (56) 9 337 370
Net interest (335) (262) (217) (194) (194)
Profit before taxation 127 (318) (208) 143 176
Taxation 48 (27) 84 (4) (36)
Profit after taxation 175 (345) (124) 139 140
Dividends (56) (27) (27) (49) (55)
Transfer to / (from) reserves 119 (372) (151) 90 85
Net assets employed
Intangible fixed assets 2,021 1,606 1,513 1,420 1,327
Tangible fixed assets 3,634 3,320 2,651 2,388 2,235
Net current assets 2,452 2,020 1,838 1,840 1,818
8,107 6,946 6,002 5,648 5,380
Non-current liabilities (3,496) (2,713) (2,011) (1,575) (1,211)
Deferred taxation and provisions (110) (104) (13) (5) (16)
Equity shareholders’ funds 4,501 4,129 3,978 4,068 4,153
Ratios 2001 2002 2003 2004 2005
Operating profit to sales 3.4% (0.4%) (0.8%) 2.5% 2.7%
Operating profit to net assets employed 10.3% (1.4%) (2.4%) 8.3% 8.9%
Net assets per ordinary share 41.3p 37.9p 36.5p 37.3p 38.1p
Dividends per ordinary share 0.50p 0.25p 0.25p 0.45p 0.50p
Basic earnings per share 1.63p (3.16p) (1.14p) 1.27p 1.28p
Earnings per share excluding goodwill 
amortisation 2.63p (2.17p) (0.28p) 2.13p 2.14p
Gearing (net debt as a % of 
shareholders’ funds) 99.2% 84.5% 81.7% 66.3% 57.9%
F I V E Y E A R S U M M A R Y L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
45
NOTICE IS HEREBY GIVEN that the Forty Forth 
Annual General Meeting of LPA Group plc (“the 
Company”) will be held at the offices of Teather 
& Greenwood Limited, Beaufort House, 15 St 
Botolph Street, London EC3A 7QR on Wednesday 
8 March 2006 at 12.00 noon for the following 
purposes:
Routine business
1. To receive the accounts for the year ended 
30 September 2005, together with the 
reports of the directors and the auditors 
thereon.
2. To declare a final dividend of 0.35p per 
ordinary share for the year ended 30 
September 2005, payable on 17 March 
2006 to shareholders on the register at the 
close of business on 24 February 2006.
3. To re-appoint Stephen Brett as a director of 
the Company.
4. To re-appoint Peter Pollock as a director of 
the Company.
5. To appoint the auditors and to authorise the 
directors to fix the auditors’ remuneration.
Other business
To consider and if thought fit pass resolution 6 as 
an ordinary resolution:
6. That the directors be generally and 
unconditionally authorised to exercise all 
powers of the Company to allot relevant 
securities (as defined in section 80 of the 
Companies Act 1985) up to an aggregate 
nominal amount of £363,000 to such 
persons at such times and on such terms 
and conditions as the directors see fit 
provided that this authority shall expire 
on the date of the next Annual General 
Meeting, except that the Company may 
before such expiry make an offer or 
agreement which would or might require 
relevant securities to be allotted after such 
expiry and the directors may allot relevant 
securities in pursuance of any such offer or 
agreement as if the authority conferred by 
this resolution had not expired, and that 
this authority shall be in substitution for 
all subsisting authorities to allot relevant 
securities previously granted to the directors 
which (to the extent that they remain in 
force and unexercised) are revoked.
To consider and if thought fit pass resolution 7 as 
a special resolution:
7. That, subject to and conditional upon the 
passing of resolution 6 above, the directors 
be given power pursuant to section 95 of 
the Companies Act 1985 to allot equity 
securities (as defined in section 94 of the 
said Act) for cash pursuant to the authority 
conferred by resolution 6 above as if section 
89(1) of the said Act did not apply to any 
such allotment provided that this power 
shall be limited:
a. to the allotment of equity securities in 
connection with a rights issue, open offer 
or other preemptive offer in favour of 
shareholders where the equity securities 
respectively attributable to the interests 
of all shareholders are proportionate 
to the nominal value of shares held by 
them but subject to such exclusions or 
other arrangements as the directors 
may deem necessary or expedient to 
deal with fractional entitlements or legal 
or practical problems under the laws 
or the requirements of any recognised 
regulatory body in the territory; and
b. to the allotment (otherwise than pursuant 
to sub-paragraph (a) above) of equity 
securities up to an aggregate nominal 
value of £109,000 (representing 10% of 
the present issued share capital), 
and shall expire on the date of the next Annual 
General Meeting save that the Company may 
before such expiry make an offer or agreement 
which would or might require equity securities 
to be allotted after such expiry and the directors 
may allot equity securities in pursuance of any 
such offer or arrangement as if the power 
conferred hereby had not expired. 
N O T I C E O F M E E T I N G L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
46
To consider and if thought fit pass resolution 8 as 
an extraordinary resolution:
8. That the Company be and is hereby 
generally and unconditionally authorised 
to make market purchases (as defined in 
Section 163(3) of the Companies Act 1985) 
of any of its ordinary shares of 10p each 
(“ordinary shares”) provided that:
a. The maximum number of ordinary shares 
hereby authorised to be purchased is 
1,090,000 representing 10% of the 
issued share capital;
b. The minimum price which may be paid 
for an ordinary share is 10p (exclusive of 
expenses);
c. The maximum price which may be paid 
for an ordinary share is an amount 
equal to 105% of the average of the 
middle market quotations for an ordinary 
share as derived from the London Stock 
Exchange Daily Official List for the five 
business days immediately preceding the 
day on which the ordinary shares are 
contracted to be purchased (exclusive of 
expenses);
d. The authority hereby conferred shall, 
unless renewed prior to such time, expire 
on the date of the next Annual General 
Meeting. 
N O T I C E O F M E E T I N G ( C O N T I N U E D )
Notes:
1. A member entitled to attend and vote at 
the meeting may appoint a proxy or proxies 
to attend and, on a poll, vote instead of 
him/her. A proxy need not be a member of 
the Company. Any instrument appointing a 
proxy must be received at Capita Registrars, 
Registrars for LPA Group PLC, Proxy 
Department, The Registry, 34 Beckenham 
Road, Beckenham, Kent BR3 4TU, not less 
than forty-eight hours before the time 
fixed for the meeting. A Form of Proxy is 
attached. 
2. The register of the interests of the directors 
and their families in the share capital of the 
Company together with the service contracts 
of directors will be available for inspection 
at the venue of the annual general 
meeting from 11.45 am until the meeting 
is concluded. The same documents are 
available for inspection at the Company’s 
registered office during normal business 
hours from the date of the Notice until the 
date of the Annual General Meeting. 
By order of the Board
Stephen Brett 
Secretary
23 January 2006 
Registered office:
Tudor Works
Debden Road
Saffron Walden
Essex CB11 4AN L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
47
For use at the Annual General Meeting to be held at 12.00 noon on Wednesday 8 March 2006 at the offices of Teather 
& Greenwood Limited, Beaufort House, 15 St Botolph Street, London EC3A 7QR. 
I/We  ........................................................................................................................................................................
of  ............................................................................................................................................................................
being a member/members of LPA Group plc hereby appoint (note 1)  .......................................................................
or failing him the Chairman of the meeting as my/our proxy to vote for me/us and on my/our behalf at the above 
mentioned meeting and at any adjournment thereof.  I/We wish this proxy to be used as shown below:
Signed ......................................................................................  Dated ......................................…………….... 2006
Please indicate with an “X” in the spaces below how you wish your votes to be cast.  This proxy will be used only in the 
event of a poll being directed or demanded.  If the form is returned without any indication as to how the proxy shall 
vote on any particular matter, the proxy will vote or abstain as he thinks fit.
Resolution For Against
1. To receive the accounts for the year ended 30 September 2005.
2.
To declare a final dividend of 0.35p per ordinary share for the year ended 30 
September 2005.
3. To re-appoint Stephen Brett as a director of the Company. 
4. To re-appoint Peter Pollock as a director of the Company.
5.
To appoint the auditors and to authorise the directors to fix the auditor’s 
remuneration.
6.
To authorise the directors to allot shares (as defined in section 80 of the 
Companies Act 1985) in the Company. 
7.
To authorise the directors (pursuant to section 95 of the Companies Act 1985) 
to allot shares in the Company for cash.
8.
To authorise the Company to make market purchases (as defined in section 
163(3) of the Companies Act 1985) of its own shares. 
L P A G R O U P P L C - F O R M O F P R O X Y
Notes:
1. If you wish to appoint as your proxy any person(s) 
other than the Chairman of the meeting, please 
insert the full name(s) of the proxy or proxies (in 
block capitals) in the space above. A proxy need 
not be a member of the Company and may attend 
the meeting in person but may not vote except 
on a poll. Please note that a proxy may not speak 
at the meeting except with the permission of the 
Chairman of the meeting. 
2. To be effective a form of proxy must be in writing 
and signed by the member or his duly authorised 
attorney or, if the member is a corporation under its 
common seal or signed by a duly authorised
 
 officer or attorney. A corporation may appoint a 
representative to attend and vote at the meeting.
3. To be valid this proxy, together with any power of 
attorney under which it is signed, must be received 
at the Registrars of the Company, Capita Registrars, 
Registrars for LPA Group PLC, Proxy Department, 
The Registry, 34 Beckenham Road, Beckenham, 
Kent BR3 4TU not less than 48 hours before the 
time fixed for the meeting. 
4. In the case of joint holdings the vote of the first-
named holder in the register will be accepted to the 
exclusion of the other joint holders. THIRD FOLD AND TUCK IN OPPOSITE
FIRST FOLD 
SECOND FOLD
Capita Registrars
Registrars for LPA Group PLC
Proxy Department
PO Box 25
Beckenham
Kent 
BR3 4BR
BUSINESS REPLY SERVICE
Licence No. MB122
1 L P A G R O U P P L C A N N U A L R E P O R T & A C C O U N T S 2 0 0 5
G R O U P D I R E C T O R Y
LPA Channel Electric
Bath Road, Thatcham,
Berkshire, RG18 3ST. UK
Tel: +44 (0)1635 864866
Fax: +44 (0)1635 869178
Email: enquiries@lpa-channel.com
Website: www.lpa-group.com
• Connectors
• Relays & contactors
• Circuit breakers
• Fans & motors
• Switches
• Terminal assemblies
LPA Excil Electronics
Ripley Drive, Normanton,
West Yorkshire, WF6 1QT. UK
Tel: +44 (0)1924 224100
Fax: +44 (0)1924 224111
Email: enquiries@lpa-excil.com
Website: www.lpa-group.com
• Lighting systems (LED, dichroic & fluorescent)
• Emergency lighting systems
• Power supply units
• Inverters
• Electronic control & monitoring
• Contract electronics manufacturing
LPA Haswell Engineers
Oakwood Business Park, Stephenson Road West,
Clacton-on-Sea, Essex CO15 4TL. UK
Tel: +44 (0)1255 428424
Fax: +44 (0)1255 432963
Email: enquiries@lpa-haswell.com
Website: www.lpa-group.com
• Enclosures
• Fabrications
• Laser cutting
• Punch, form & weld
• Wet paint, powder coating & screenprint
LPA Niphan Systems
Tudor Works, Debden Road,
Saffron Walden, Essex, CB11 4AN. UK
Tel: +44 (0)1799 512800
Fax: +44 (0)1799 512828
Email: enquiries@lpa-niphan.com
Website: www.lpa-group.com
• Rail, aircraft & industrial connectors
• Auxiliary battery power systems
• Control panels & boxes
• Shore supply systems
• Batteries (gel lead acid)
• Cable management
LPA Group plc
Tudor Works, Debden Road
Saffron Walden, Essex, CB11 4AN. UK
Tel: +44 (0)1799 512800  
Fax: +44 (0)1799 526793  
Website: www.lpa-group.com LPA Group plc, Tudor Works, Debden Road, Saffron Walden, Essex, CB11 4AN. UK
Tel: +44 (0)1799 512800  Fax: +44 (0)1799 526793  Website: www.lpa-group.com   
LPA Group PLC
P R O V I D I N G S O L U T I O N S 
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