The Alumasc Group Plc – Interim Management Statement
Continued good performance
Alumasc (ALU.L), the premium building and engineering products company, is holding its Annual General Meeting at 10.30 a.m. today and is publishing its first interim management statement relating to the year ending 30 June 2009.
As predicted in the preliminary announcement of 10 September 2008, Alumasc has continued to perform well. First quarter revenue and profits are both ahead of prior period comparators1, benefiting from further growth in demand for sustainable building products.
• First quarter revenue in the Building Products division, representing almost 70% of group revenue, grew by 8%, or 6% on a like-for-like basis. This growth was driven by a 12% like-for-like increase in revenue from sustainable building products, with Levolux, in particular, recording another strong performance. Whilst contraction in UK house building activity dampened overall growth rates, this sector now accounts for less than 7% of group revenue. Rapid management action has been taken to reduce costs in areas where demand has fallen.
• First quarter revenue in the Engineering Products division, representing just over 30% of group revenue, was ahead by almost 10%, reflecting a better start to the current year at Alumasc Precision Components, where steady progress is being made in rebuilding profitability. There are early signs of some softening in demand for automotive work and at Alumasc Dispense, albeit together these represent less than one-third of divisional revenues.
• Group operating margins were similar to prior period levels. Whilst Building Products’ divisional margins experienced some erosion from changes in product mix across our business portfolio and from the appreciation of the Euro and Dollar against Sterling, Engineering Products’ margins have shown some improvement from low levels in the prior year’s first quarter.
• There have been no significant changes to trading trends since 30 September 2008 and no significant changes in the group balance sheet since the group’s 30 June 2008 year end. Group net debt has remained broadly unchanged from the £9.4 million reported at the year end, with gearing levels comfortable at around 30%.
We continue actively to seek and analyse opportunities for developing our portfolio of sustainable building product businesses further where market prospects remain attractive.As with many businesses commenting in recent weeks, we see a marked difference between our own performance and the intense financial troubles which surround us. Alumasc’s order books and balance sheet remain strong, placing the group in a good position to deal with the current economic uncertainties.
Note 1: Prior period profit has been re-stated in respect of Alumasc Precision Components, for the reasons described on page 34 of the group’s 2008 Annual Report.
The Alumasc Group plc
Paul Hooper (Group Chief Executive) Tel: 01536 383821
Andrew Magson (Group Finance Director) Tel: 01536 383844
Charles Ponsonby Tel: 0207 367 8851
Rose Oddy Tel: 0207 367 8853