The Alumasc Group Plc – Interim Announcement
“Board confident in Alumasc’s ability to perform well”
Alumasc (ALU.L), which supplies premium building and engineering products, announces an increase in adjusted1 pre-tax profit of almost 50% from continuing operations in the half year to 31 December 2007.
• Revenue from continuing operations, which include Levolux acquired last May, increased by 26% to £59.9m. Excluding the acquisition, revenue rose by 7%, driven by strong growth in the Building Products division.
• On continuing operations, including Levolux, the UK’s leading supplier of solar shading systems for buildings, adjusted1 pre-tax profit increased by almost 50% to £4.5m and adjusted1 earnings per share were also nearly 50% ahead at 8.6p.
• With Brock Metal, the producer of zinc and aluminium alloys sold in June 2007, included in the prior period comparator, adjusted1 pre-tax profit increased by 24% and operating margins improved by 3.3 percentage points.
• Group pre-tax profit of £5.2m was ahead by 45% and group earnings per share were 47% ahead at 10.3p.
• The interim dividend per share is increased by 4.8% to 3.25p, covered 2.6 times.
• In the period, interest cover (on borrowings) exceeded nine times and gearing reduced to 35% from 40%.
• Building Products divisional revenue grew by 51% to £40.2m (up 16%, excluding Levolux) and adjusted1 operating profit increased by 75% to £4.8m (26% ahead, excluding Levolux).
• The group’s sustainable building products activities continued to advance, with increasing demand for greater energy and water management in construction.
• Engineering Products divisional revenue from continuing operations of £19.7m and adjusted1 operating profit of £1.2m were 5% and 13% lower than the prior year, respectively. This performance was largely as anticipated, as the move from traditional automotive work to the new product and market areas continued at Alumasc Precision.
John McCall, Chairman, stated “Alumasc’s trading results tend to be seasonally biased towards the second half. With order books ahead of those a year ago, we expect a similar pattern this year Alumasc’s recent performance has benefited from actions taken to improve the business and seek out opportunities for growth. These actions will continue to yield benefits in the second half year and beyond. The Board is fully aware of the uncertainties which dominate the broader economic outlook. However, the group’s balance sheet and businesses remain strong and the Board is confident in Alumasc’s ability to perform well in these circumstances.”
1 Adjusted profits and earnings exclude property disposal gains of £1.0m, brand amortisation of £0.1m and one-off reorganisation costs at Alumasc Dispense of £0.2m (2006: £nil in each case).
Today, a presentation will be made to institutional broker’s analysts and private client brokers by Paul Hooper (Chief Executive) and Andrew Magson (Group Finance Director), with John McCall (Chairman) in attendance. The meeting will commence at 9.30am and end at approximately 10.30am. It will be held at Bankside’s offices, 1 Frederick’s Place, London EC2R 8AE (which is off Old Jewry, which itself runs between Cheapside and Gresham Street, approximately 200 yards from the Bank of England).
The Alumasc Group plc
Paul Hooper (Chief Executive)
Andrew Magson (Group Finance Director)
Tel: 01536 383844 | Email: email@example.com
Bankside Consultants Limited
Tel: 020 7367 8851 | Email: firstname.lastname@example.org
Alumasc traded strongly in the half year to 31 December