Alumasc (ALU.L), the premium building and engineering products group, announces strong gains in performance and strategic development in the year to 30 June 2007.
• Total group revenue increased by 22% to £163.4m.
• Pre-tax profit increased by 74% to £9.9m and basic EPS increased by 76% to 19.5p reflecting good performances in the Building Products division, an exceptional profit from Brock Metal prior to its sale at the year end and a prior year result which included the closure costs of Copal Castings.
• On continuing operations, revenue increased by 10% to £103.6m, pre-tax profit increased by 4% to £7.8m and basic EPS increased by 6% to 15.6p
• The final dividend per share is increased by 4.8% to 6.6p, giving a total for the year of 9.7p, covered 2.0 times by earnings.
• Building Products made an operating profit, adjusted to exclude property disposal gains and acquisition accounting adjustments, of £6.6m (2006: £6.4m) on revenue up 7.9% at £59.6m (2006: £55.3m). In the two month period following acquisition, Levolux contributed an adjusted operating profit of £0.4m from revenue of £3.0m.
• Five of the group’s building products businesses reported record results. However, this profitable growth was largely offset by significantly lower social housing refurbishment activity after a buoyant prior year, and lower metal roofing sales on the Fjardaal project.
• Engineering Products made an operating profit of £2.2m (2006: £2.1m) on revenue up 12.3% at £44.0m (2006: £39.1m).
• Alumasc Precision had a strong start to the year, but a tougher second half, whilst Alumasc Dispense had a relatively quiet year.
• In May, Alumasc acquired Levolux, the UK’s leading supplier of solar shading systems for buildings, for £13.5m (excluding cash acquired). Levolux falls squarely into the sustainable building products category where Alumasc has a growing family of market leaders. Levolux is anticipated to be earnings enhancing in the current year.
• The sale of Brock Metal at the year end was a strategically important step for Alumasc, enabling management to focus further on growing the group’s higher margin core premium building and precision engineering product businesses.
• The group entered the new financial year with stronger order books than a year ago, particularly in the Building Products division.
Paul Hooper, Chief Executive, stated, “2006/07 was a year of transformation for Alumasc. The acquisition in May 2007 of Levolux and the disposal in June 2007 of Brock Metal, a producer of zinc and aluminium alloys, were both major transactions which demonstrate the group’s commitment to increasing its strategic focus on niche premium building product and precision engineering businesses.”
John McCall, Chairman, added “The growth in total earnings in the past year sets a new and challenging target for the current year, not least given the exceptional contribution from Brock. The acquisition of Levolux towards the end of the year, with its profitable record and growth prospects, will help in this regard. Overall, the shape of the group is stronger than for many years and provides a strong base for further development.”
Today, from 09.30am to 10.30am, a presentation to broker’s analysts and private client brokers will be held at the offices of Bankside Consultants, 1 Frederick’s Place, London EC2R 8AE.