Annual Results Announcement
Alumasc (ALU.L), the premium building and engineering products group, announces a resilient performance in the difficult circumstances of the year to 30 June 2009.
• Revenue down 13% at £109.1m
• Underlying* pre-tax profit 46% lower at £5.2m and underlying* EPS 45% lower at 10.0p
• Reported PBT 82% down at £1.8m and basic EPS 86% down at 2.9p
• Year end net debt up only £0.9m to £10.3m, gearing 33%, substantial unutilised committed banking facilities
• Dividends per share maintained at 10.0p (covered 1.0x by underlying* earnings per share), with a final dividend per share of 6.75p proposed
• £6m of annualised cost savings effected will give some flow-through benefit in the current year
• Building Products’ underlying* operating profit reduced by 14% to £9.2m on revenue down 6% at £78.7m. The largest segment within the division, Energy Management, increased underlying* operating profit by 33% to £6.4m on revenue up 10% at £39.1m
• Levolux, the UK’s leading solar shading company, acquired in May 2007, delivered another outstanding performance and again reported record results
• Sales of green roofs more than doubled, with ZinCo intensive green roofs having a record year and Blackdown Horticultural Consultants, acquired in March 2008, having a very successful first year in the group
• Engineering Products made an underlying* operating loss of £1.4m (2007/08: profit of £1.7m) on revenue down 29% at £31.7m
• Alumasc Precision began the year well, benefiting from new work wins. However, demand from international OEM customers, which serve principally the non-automotive and premium automotive markets, reduced significantly in December. Swift management action has been taken to address this challenge
* excluding amortisation of brands, restructuring costs, impairment charges and property disposal gains
Paul Hooper, Chief Executive, stated 2008/09 was a challenging year for Alumasc, as worsening global economic conditions increasingly impacted the group’s markets for niche building and engineering products. Nonetheless, the group’s recent strategic development of a portfolio of modern, sustainable building product businesses, all of which have continued to perform well, underpinned a relatively resilient underlying performance for the year as a whole when compared with a number of our peers in the construction and building materials sector.
Alumasc has begun the current financial year with trading continuing at similar levels to those observed towards the end of the 2008/09 financial year, albeit significantly lower than one year ago. Whilst any sort of forecasting in the current environment is not easy, on the basis of current order books and construction industry forecasts, we expect the new financial year to be more challenging than its predecessor for the Building Products division, with lower levels of commercial new build construction activity anticipated. We would expect the Engineering Products division to benefit from cost reduction actions already taken and the numerous business improvement and efficiency initiatives ongoing, particularly at Alumasc Precision, under the new management team.
With its leading brands and market positions, continued careful management of cash resources and strong balance sheet, Alumasc remains well placed to manage through the rest of the recession, benefit from the opportunities that this will bring, and emerge a stronger group when economic conditions improve.
Today, a presentation will be made to institutions, broker’s analysts and private client brokers by Paul Hooper (Chief Executive) and Andrew Magson (Finance Director), with John McCall (Chairman) in attendance.