The Alumasc Group Plc : Pre Half-Year Close Trading Update
Alumasc (ALU:L), the premium building and engineering products group, expects to announce its half year results, for the six month period to 31 December 2008, on 5 February 2009. Prior to entering its close period, Alumasc today issues a trading update.
Alumasc expects its results for the six months to 31 December 2008 to be broadly in line with the Board’s previous expectations, reflecting the continuing strength of its sustainable building products activities, in contrast to weakening international engineering markets reflecting cutbacks by OEMs.The universal downturn in OEM demand, which gathered pace in November, particularly affects Alumasc Precision, which generated approximately 25% of group revenue in the year to 30 June 2008. Given the change in market conditions on an almost daily basis, it is too early to make predictions for the coming six months, and therefore the full year. However, were the current level of downturn in OEM demand of around 30% to continue for the remainder of the year to 30 June 2009, the outcome for the full year for the Engineering Products division and for the group as a whole would fall below the Board’s previous expectations.
Prospects for the group’s core building products activities remain strong. Action has been taken, and will continue to be taken as needed, to manage the current downturn in engineering OEM demand.The group’s cash flow performance has continued to be robust and the group’s balance sheet remains strong. Group overdraft facilities of £11 million have recently been renewed for a further year, supplementing the group’s £15 million revolving credit facility which remains committed until 2012. Together, these facilities are approximately double the group’s expected level of net debt at 31 December 2008. The group remains in a strong position to manage the current economic uncertainties and opportunities.
The Alumasc Group plc
Paul Hooper (Group Chief Executive) Tel: 01536 383821
Andrew Magson (Group Finance Director) Tel: 01536 383844
Charles Ponsonby Tel: 0207 367 8851
Rose Oddy Tel: 0207 367 8853
This trading update 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 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 trading update is intended to be a profit forecast.