LPA Group (AIM:LPA) shares rose over 11% to 85p in early morning trade on Friday after the engineering company said strong trading has pushed adjusted earnings for the financial year ahead of market expectations.
The innovation-led engineering group said revenue for the financial year ending 30 September has increased, with adjusted earnings now expected to beat current market expectations.
Reported pre-tax profit for the year will also benefit from exceptional income linked to an accelerated payment on a contract, following a change in customer requirements.
The company's guidance for the following financial year remains unchanged.
Philo Daniel-Tran, chief executive, said strong performance in the first half of the financial year has continued into the second half.
Daniel-Tran said the group is now expected to deliver revenue and profits ahead of previous market expectations for the year.
He pointed to a healthy pipeline of opportunities heading into the next financial year, alongside continued progress on the company's move toward a unified "One LPA" structure.
Daniel-Tran said the group remains mindful of ongoing inflationary pressures and an uncertain macroeconomic environment.
He added that the strength of the balance sheet gives the board confidence that the group is well positioned for the future.
