Interim Management Statement
THE ALUMASC GROUP PLC – INTERIM MANAGEMENT STATEMENT
Alumasc, the premium building and engineering products company, is publishing its final interim management statement for the year ending 30 June 2012 covering the period from 1 January 2012 to date.
At the time of its interim results in February 2012, Alumasc reported serious difficulties with the group’s Alumasc Precision Components (“APC”) operation. APC’s problems were complex, requiring a comprehensive recovery plan which is now well underway. We have implemented a profit recovery plan built around the appointment of a new divisional Managing Director, with a career of relevant industry experience, supported by a strengthening of senior management, including finance. A new APC board structure has been put in place, with specialist non-executive representation. In view of the progress to date, the new team remains confident of returning APC to profitability for the coming year. In the meantime the other part of the Engineering Products Division, Dyson Diecasting, has continued to perform well winning new orders from customers such as Bentley, TRW and Siemens.
The group’s Building Products operations have continued to perform broadly as expected. We have continued investing in developing markets for our building products, which is starting to bear fruit and promises well for future years. Whilst the continued softness in the UK construction sector has been well publicised, recent announcements by Alumasc of major contract wins provide a welcome contrast. The Façades projects funded by the Community Energy Savings Programme (CESP) have now commenced and are leading to much increased activity in the final quarter of the year, with expected continuation into next year (based on the high level of current quotations). Rainwater and Drainage activity has remained buoyant. Levolux has had a subdued performance, but it currently has its highest order book since early 2009 which bodes well for the following year.
Net debt at 30 April 2012 was £17.8 million (31 December 2011: £13.4 million), with the increase since the half year mainly reflecting trading at APC and seasonal working capital movements. Usually, Alumasc has a strong cash performance in the last few weeks of the financial year. There have been no other material changes to the group balance sheet since 31 December 2011.
In view of all the above, and depending on the extent of recovery at APC prior to the year end, the full year out-turn for underlying profit before tax (excluding brand amortisation and non-recurring costs) could be £0.5 million to £1.0 million below our previous expectations. In addition, one-off restructuring costs are expected to be £0.7 million. However, group order books currently stand at record levels of over £50 million, reflecting the previously announced Canadian smelter contract win, the new Levolux contract at Chiswick Park and a healthy order book at Alumasc Precision. While deeply disappointed with the expected outcome in the current year, the Board believes that the actions and developments outlined above will considerably improve performance in the forthcoming financial year.
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
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.