The Alumasc Group Plc – Interim Announcement
Alumasc (ALU.L), the premium building and engineering products group, announces a much improved first-half trading performance in respect of the half year to 31 December 2006 compared with the half year to 31 December 2005, with increased revenue and operating profit in both of the Group’s divisions, Building Products and Engineering Products.
• Revenue increased by 26% to £75.1m from £59.4m.
• Profit before tax on continuing operations increased by 34% to £3.6m from £2.7m on a like-for-like basis (excluding the £0.2m gain on a property disposal last year).
• Earnings per share on continuing operations increased by 18.6% to 7.0p from 5.9p (an increase of 34.6% excluding the prior year property disposal gain).
• Interim dividend per share is increased by 3.3% to 3.1p from 3.0p, payable on 10 April 2007 to shareholders on the register at the close of business on 9 March 2007.
• Dividend cover increased to 2.3 times from 2.0 times.
br/>• The main drivers of first-half profitable growth were:- increased customer demand for specialist construction products, namely GATIC access covers and Slotdrain products;- focus on non-automotive diesel engine component supply at Alumasc Precision; and – a near trebling in worldwide zinc prices benefiting Brock Metal.
• Alumasc’s Building Products division increased revenue by 2.9% to £26.7m and grew operating profit by 2.4% to £2.6m, representing approximately 36% of group revenue and 63% of group operating profit. Revenue and profit growth were constrained by a lower level of building refurbishment work, particularly in the social housing sector, although there were good performances in Construction Products and in other niche businesses.
• In Engineering Products, Precision Components grew first-half revenue from continuing operations by almost 30% to over £16.5m. Operating profit from continuing operations increased by more than 40% to £0.9m, further evidence of the strong recovery in this business since the loss of MG Rover in 2005.
• Also in Engineering Products, Industrial Products reported a growth in revenue of £11.2m to £31.9m with first-half operating profit increasing to £0.6m from £0.1m, driven by an exceptional half year performance from Brock Metal, a producer of zinc and aluminium alloys.
John McCall, Chairman, stated: “As has been the case in recent years, the Board expects that there will be a seasonal bias in favour of the Group’s second-half results although, after this year’s stronger first half, the bias is unlikely to be as marked as last year. We expect that second-half year trading conditions will be broadly similar to those in the first half and therefore the Board is optimistic that Alumasc will report another good full year result, particularly if the early signs of a recovery in social housing spend translate into higher activity levels as the year progresses.The Group continues actively to seek acquisitions for its Building Products Division.”
Today, from 09:30am to 10:30am, a presentation to broker’s analysts and private client investment advisers will be held at the offices of KBC Peel Hunt, 111 Old Broad Street, London EC2N 1PH.click here to download the interim presentation 2006.
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The Alumasc Group plc
01536 383844 | firstname.lastname@example.org
Paul Hooper (Chief Executive)
Andrew Magson (Finance Director)
Bankside Consultants Limited
020 7367 8851 | email@example.com