The Alumasc Group Plc – Interim Management Statement
Alumasc, the premium building and engineering products company, is publishing its first interim management statement for the year ending 30 June 2012 ahead of its Annual General Meeting being held in London at 10.30am today.
Overall, trading in the financial year to date has been broadly in line with management expectations.
The Building Products division has achieved a small increase in revenues against a background of a subdued UK construction market. Margins remain under pressure in a highly competitive market place and with input cost inflation continuing. Consequently divisional profits are lower than this time last year. Management initiatives continue to seek to improve margins wherever possible. Encouragingly, Levolux (the UK’s leading solar shading business) is improving order intake, including more recently outside London and the South-East. In view of typical lead times, this could benefit the group’s 2012/13 financial year.
Alumasc Precision continues to experience strong demand and has increased both revenues and profits. It has recently won further business with Perkins Engines and Rotork and, ahead of this new work coming on-stream, investment in additional machining capacity is now underway. A re-phasing of customer demand for the work won last year to supply components used in larger engine transmission systems is expected to result in a greater second-half bias to overall group results than anticipated at the beginning of the financial year.
Cash flow performance has also been in line with management expectations. The group’s net debt has averaged £12.8 million over recent weeks (30 June 2011: £10.7 million) and is higher than at the year end due to normal seasonal working capital requirements and increased activity levels.
In common with other defined benefit pension schemes, Alumasc’s pension deficit will have increased as a consequence of recent events in financial markets, with shareholders’ funds reducing as a consequence. There have been no other significant changes to the group’s balance sheet since the last financial year end.
The group’s order books have increased since the last year end from around £44 million to £46 million. Whilst we remain cautious with regard to the external economic environment, we have not seen evidence of a slow down in our own order intake or enquiry levels more generally.
The Alumasc Group plc
Paul Hooper (Group Chief Executive) Tel: 01536 383821
Andrew Magson (Group Finance Director) Tel: 01536 383844
Simon Bloomfield Tel: 0207 367 8861
James Irvine-Fortescue Tel: 0207 367 8863
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.