The Alumasc Group Plc – Interim Announcement intment of Non-Executive Director
“a robust first-half trading performance”
Alumasc (ALU.L), the UK-based supplier of premium building and engineering products, announces a robust first-half trading performance in the six months to 31 December 2008, driven by continued profitable growth in the group’s sustainable building products businesses against a backdrop of general economic and market conditions that became increasingly challenging as the period progressed.
• Revenue grew by 1% to £60.7m .
• Underlying(1) pre-tax profit of £3.5m fell just 3% short of the strong interim figure last year (2007: £3.6m) and underlying(1) earnings per share were little changed at 6.8p (2007: 7.0p).
• The reported pre-tax profit was £2.7m (2007: £4.4m, benefiting from a property disposal gain of £1.0m) and basic earnings per share were 4.8p (2007: 8.7p).
• An unchanged dividend per share of 3.25p is declared.
• The £1.4m increase in net debt in the period, taking net debt to £10.8m (gearing of 37%), was consistent with Alumasc’s usual first-half experience and some £2.0m better than internal expectations set at the beginning of the year.
• Building Products revenue grew by 6% to £42.7m and underlying(1) operating profit increased by 7% to £5.2m. Operating margins remained healthy at 12.1%, a little ahead of prior-year levels.
• Sustainable building products activities generated close to two-thirds of the group’s first-half revenue, achieving growth rates well-above UK construction market averages and delivering superior returns on both sales and capital invested.
• Within this category, Levolux, the UK’s leading solar shading company, which was acquired in May 2007, delivered an outstanding first-half performance and continues to win high-profile and innovative project work.
• Engineering Products revenue totalled £18.8m (2007 £20.4m) and underlying operating losses were £0.3m (2007: underlying operating profit of £0.3m).
• Engineering Products revenue and profit had both been ahead of prior period comparators at the end of the first quarter.
John McCall, Chairman, stated:
“The Board believes that medium and long term prospects for the group’s core Building Products’ activities remain strong, particularly for sustainable building products. However, these activities are not immune to current economic and market conditions. Divisional profits are being impacted by Sterling’s weakness and could be further affected should demand for new commercial buildings weaken in 2009, as is being anticipated by some industry commentators. Nonetheless, current order books for the division remain healthy, albeit below the levels seen six months ago.The significant downturn in demand from OEM customers that impacted results in the Engineering Products division just prior to the calendar year end has continued into the new calendar year and costs have been reduced accordingly.In summary, the Board’s expectations for the current year are unchanged from those given in the group’s trading update of 19 December 2008. The group’s cash flow performance continues to be robust and the group’s balance sheet remains strong. Alumasc is well placed to manage through current economic uncertainties and take advantage of opportunities.”
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. The meeting will commence at 9.30am and end at approximately 10.30am. It will be held at the offices of KBC Peel Hunt, 111 Old Broad Street, London, EC2N 1PH.
The Alumasc Group plc
Paul Hooper (Chief Executive) Andrew Magson (Finance Director)Tel: 01536 383844