Statement re MG Rover
Following recent developments at MG Rover, the Alumasc Board has issued the following statement:
• While the future of MG Rover has been uncertain for some time, the decline in terms of vehicle sales has been evident for many months.
• As declining volumes made business with Rover increasingly uneconomic, Alumasc has taken necessary steps to protect its own business, including the pursuit of new customers in other sectors.
• As a result of the actions taken, Alumasc’s exposure to the Rover group is limited to approximately £0.2 million, with a similar potential write off of dedicated tooling, equipment, stocks etc.
• In the half year to December 2004, sales to MG Rover and Powertrain amounted to £1.9 million, 3% of the group’s sales. Additional sales of £0.6 million (1% of the group’s sales) were made to other suppliers to Rover.
• Paul Hooper, Chief Executive, commented “While developments at Rover are a matter for regret, Alumasc has been reviewing manufacturing capacity in the light of falling automotive demand and formal consultation has been under way in one of our facilities since February. The aim is to align capacity with the future needs of our customers while enhancing divisional profitability.”
Note for Editors:
Alumasc is a high specification building products and precision engineering company. In the year to June 2004, it made profit before tax of £8.9 million on turnover of £115 million and had no borrowings at the year end. The precision engineering division accounted for one third of group turnover and operating profit.
The Alumasc Group plc 01536-383 844
John McCall (Chairman)
Paul Hooper (Chief Executive)
Bankside Consultants Limited
Charles Ponsonby 020-7444 4166