Interim Management Statement
Alumasc, the premium building and engineering products company, is publishing its first interim management statement for the year ending 30 June 2010 to coincide with its Annual General Meeting being held in London at 10.30am today.
Trading from 1 July to date has been in line with the Board’s expectations. Overall activity levels have been stable when compared with the final quarter of the previous financial year, albeit group revenues in the first quarter remained well below the first quarter of the prior year, which preceded the impact of the recession on the group.
The principal factors affecting trading so far in this financial year have been those anticipated in the Report and Accounts 2009, namely:
• a further reduction in demand for new build commercial buildings, mitigated by Alumasc’s sustainable building product activities, which continue to perform relatively well;
• broadly stable demand for public sector new build and refurbishment work;
• a modest upturn in demand from the new house building sector
• continued quiet market conditions in the brewing sector;
• stable to slightly improved demand from international OEMs for precision engineering products following de-stocking in the second half of the previous financial year; and
• moves by customers to consolidate their supplier bases, a trend we believe will benefit the group’s precision engineering businesses.
The group’s operating margins are benefiting from the £6 million of annualised cost savings delivered in the last financial year, and from further operating efficiencies and control over discretionary spend in the current year.
Progress on improving the performance of Alumasc Precision Components, the larger of the group’s precision engineering businesses, has been very encouraging and enquiry levels for further new work remain high.
Work continues to build the foundations for an increased level of export sales by Levolux and Gatic into the USA. Whilst this activity, in the main, is expected to benefit the next financial year and beyond, it may also bring opportunities towards the end of the current financial year.The group’s cash performance has been positive, with net debt at 30 September 2009 of £9.0 million, £1.3 million lower than at 30 June. This represents gearing of around 30%.
There have been no significant changes to the group’s balance sheet since 30 June 2009, and there have been no significant non-recurring items impacting the income statement.The Board continues to believe that Alumasc remains well placed to manage through the rest of the recession, benefit from the opportunities that this brings and emerge a stronger group as economic conditions improve.
On Wednesday 11 November 2009, from 13.00 to 14.00, over a sandwich lunch, Paul Hooper (CEO) and Andrew Magson (GFD) will be presenting to private client brokers and others professionally interested in ALU. The location is the offices of Bankside Consultants, 1 Frederick’s Place, London, EC2R 8AE. Those wishing to attend are asked to reply to Charles Ponsonby of Bankside Consultants by email (firstname.lastname@example.org), fax (020-7367 8899), or telephone (020-7367 8851).
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 8851/07789 202 312
Rose Oddy ~ Tel: 0207 367 8853