The Alumasc Group Plc – Interim Management Statement
Alumasc (ALU.L), the premium building and engineering products company, is publishing its second interim management statement relating to the year ending 30 June 2010.
After a very difficult winter, when the Building Products division was impacted by continued weak construction markets exacerbated by the prolonged period of cold weather, there are signs that overall group activity levels are beginning to improve as Alumasc enters its seasonally stronger spring and early summer trading period. The group’s order books have strengthened by 14% since the beginning of January.
Significant new work and specification wins in the current half year include:
• solar shading projects worth £1.2 million relating to the London Olympics;
• solar shading specifications valued at over £3 million in London and a further $1 million in the USA;
• the supply of waterproofing and drainage products to a social housing project in Sheffield with a value in excess of £1 million over the remainder of this calendar year;
• exterior wall insulation for a social housing refurbishment project in Scotland valued at around £3 million over four to five years; and
• Precision Engineering work amounting to over £6 million for Deutz and £3 million for Caterpillar over a five year period.
Since December, Alumasc Precision Components, the group’s largest Engineering Products business, has returned to profit due to improving revenues and the actions taken over the last 18 months to reduce costs substantially and increase operational efficiency. This improved performance will have a material positive turn-around effect on the Engineering Products division’s second half performance compared with a year ago, when Alumasc Precision reported a second-half trading loss of £1.2 million.
The remaining £1 million tranche of the group’s £8 million fixed cost reduction programme is expected to be fully delivered by the year end. In addition, the group’s cash flow performance has continued to run ahead of expectations set both at the beginning of the year and at the half year stage, driven by continuing strong control of working capital and capital expenditure.
In view of the very difficult winter in the Building Products division and the contraction in demand for new commercial buildings, the group’s result for the year to 30 June 2010 is now likely to be below the Board’s previous expectations. However, the group’s improving trading momentum and growing order book could still benefit the final months of the current financial year and leave Alumasc better placed as the new financial year begins.
The Alumasc Group plc
Paul Hooper (Group Chief Executive) Tel: 01536 383821
Andrew Magson (Group Finance Director) Tel: 01536 383844
Charles Ponsonby/Rose Oddy Tel: 0207 367 8851
This Interim Management Statement has been drawn up and presented for the purposes of complying with English law. Any liability arising out of or in connection with this Interim Management Statement will also be determined in accordance with English law.
This Interim Management Statement may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Many of these risks and uncertainties relate to factors beyond The Alumasc Group’s control or which cannot be estimated precisely, such as future market conditions and the behaviour of the market participants. Actual outcomes and results may therefore differ materially from any outcomes or results expressed or implied by any such forward-looking statements.Nothing in this Interim Management Statement is intended to be a profit forecast.