Alumasc Group PLC Trading Update (1807C)
June 14 2019 - 1:00AM
UK Regulatory
TIDMALU
RNS Number : 1807C
Alumasc Group PLC
14 June 2019
14 June 2019
The Alumasc Group plc (ALU.L)
Trading update
June 2019
The Alumasc Group plc (Alumasc, ALU.L) today issues the
following trading statement relating to the financial year ending
30 June 2019.
The Roofing & Water Management and Housebuilding &
Ancillaries divisions, together representing approximately 80% of
Group revenues, are both continuing to grow well ahead of the UK
construction market and are expected to deliver very encouraging
overall year-on-year revenue growth. We have addressed the margin
issues experienced in the first half year in the Gatic brand and
this is already leading to a much improved second half
performance.
The group's Architectural Screening, Solar Shading and Balconies
business, Levolux, which represents approximately 20% of group
revenues, will report a higher operating loss in the second half of
the year than was anticipated at the half year stage. Whilst we had
expected a stronger pick up in revenue in the second half based on
a firm order book, Levolux has continued to experience construction
project delays both before and after the placement of customer
orders, and margins remain below expectations in the embryonic
balconies business. In response to this, the Board has moved to
change and restructure the Levolux management team in recent months
and is already working with the new team on operational
improvements to restore profit as soon as possible, together with a
strategy to maximise value.
As a consequence of the weaker second half performance at
Levolux, the Board anticipates reporting Group full year underlying
profit before tax from continuing operations some 10-15% below its
previous expectations.
Previously announced plans to reduce fixed costs across the
Group by GBP1 million on an annualised basis into the 2019/20
financial year are on track to be delivered, with a further GBP1
million of additional savings now expected from the restructuring
of Levolux.
The Group's cash performance remains strong, with modest net
debt of circa GBP5 million expected at the year-end. The Group has
committed banking facilities of GBP20 million.
On the basis of the expectations set out above, the Board's
intention is to recommend to shareholders at the appropriate time
that the Group dividend of 7.35 pence per share is retained for the
current financial year. The Group continues to have a progressive
dividend policy with the intention of growing future dividends in
line with growth in underlying earnings.
The Board believes the Group remains well positioned to continue
to grow its Roofing, Water Management and Housebuilding Products
businesses over the medium term, whilst improving performance and
value at Levolux.
This announcement contains inside information for the purposes
of Market Abuse Regulation (Regulation (EU) No. 596/2014). The
person responsible for making this announcement on behalf of the
Company is Helen Ashton, Group Company Secretary.
Enquiries:
The Alumasc Group plc +44 (0)1536 383 844
Paul Hooper (Chief Executive)
Andrew Magson (Group Finance Director)
Peel Hunt (Broker)
Mike Bell +44 (0)207 418 8831
Camarco:
Ginny Pulbrook +44 (0)203 757 4992
Tom Huddart +44 (0)203 757 4991
Email: alumasc@camarco.co.uk
Notes to Editors:
Alumasc is a UK-based supplier of premium building products,
systems and solutions. Almost 80% of group sales are driven by
building regulations and specifications (architects and structural
engineers) because of the performance characteristics offered.
The group has three business segments with strong positions and
brands in their individual markets: Roofing & Water Management;
Architectural Screening, Solar Shading & Balconies; and
Housebuilding Products & Ancillaries.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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