Rail, telecoms and aerospace-focused electronic accessory maker LPA returned to profit during the half-year to September and expects further recovery this year, despite challenging trading conditions. This is especially the case in the latter two of its major markets but the rail business has also been suffering from delays in the award of rail franchises and therefore in the award of contracts to suppliers. Nevertheless, the company reported a profit before tax of £127,000 and earnings per share of 0.95p for the 12 month period, against house broker Teather & Greenwood's expectation of £100,000 and 0.5p, and last year's loss of £155,000 and 1.6p per share. A final dividend of 0.5p is proposed, after no interim payment. Overall, analysts say LPA has clearly not been too happy with its lot, but is nevertheless struggling through the current downturn intact, with the prospect of much improved trading when the rail situation and general market conditions improve. Bulls claim the shares look an interesting speculation, though gearing of 101% (including only £119,000 cash) means that there is little leeway for further deterioration. A move down to Aim (in May) looks sensible. EPS of 3.6p is expected this year.