Copal Sale Discussions
Alumasc, the high specification building and engineering products company, announces that Alumasc Precision Limited (APL), its engineering subsidiary, is in discussions which could lead to the sale of Copal Casting, one of APL’s three operations.
In its Interim Statement dated 10 February 2005, Alumasc announced that, due to continuing weakness in demand from automotive customers, it was undertaking a review of capacity in APL, which contributed 32% to the group’s operating profits in the year to 30 June 2004. At the same time, a 90 day consultation began with the workforce at Copal.
Subsequent events at Rover, a major customer of APL, and in particular of Copal, made this review even more essential than at the time of its announcement.
In the light of this review, and in particular the loss of Rover’s business, the Board has concluded that Copal, which has been operating at a loss for several years, is no longer viable in its present form. Discussions are taking place with a number of parties who have expressed an interest in the Copal business and a further consultation is taking place with the workforce.
While a sale of the business is likely to be at a discount to Copal’s net assets (£3.6m at 30 June 2004), the ongoing business would benefit from the elimination of the operating loss.
Higher profits from its Building Products Division should enable Alumasc to achieve underlying profits for the year to 30 June 2005, excluding Copal, in line with market expectations for the group prior to Rover’s demise. Alumasc expects to announce its results early in September
The Alumasc Group plc 01536-383 844
Paul Hooper (Chief Executive)
David Sowerby (Finance Director)
Bankside Consultants Limited
Charles Ponsonby 020-7367 8851