Alumasc Group PLC Trading Statement (8120T)
July 23 2020 - 1:00AM
UK Regulatory
TIDMALU
RNS Number : 8120T
Alumasc Group PLC
23 July 2020
23 July 2020
THE ALUMASC GROUP PLC
("ALUMASC")
Trading Statement
June sales significantly ahead of internal forecasts
Alumasc, the premium building products, systems and solutions
group, provides the following update on trading. The financial year
to 30 June 2020 ended with improving trading, with sales in the
second half of May and during June significantly ahead of internal
forecasts made earlier in the pandemic. Revenue for the year ended
30 June 2020 is now expected to be approximately GBP76m a decrease
of c.16% on the previous year almost entirely as a result of the
COVID-19 lockdown, with the bulk of the impact felt during late
March, April and early May.
Our primary focus continues to be the safety and wellbeing of
our employees, suppliers and customers. Alumasc's health and safety
practices follow UK Government guidelines at all our sites in terms
of being COVID-19 secure.
FY2020 and current trading
Despite the adverse impact of the reduced revenue, profitability
has benefitted from internal initiatives to reduce costs, as
advised in previous announcements. Prior to the outbreak of the
COVID-19 pandemic Alumasc was already in the process of
implementing a cost saving programme focussed on realising
synergies available following the acquisition of Wade, together
with other operational efficiencies and improvements. Subsequent to
the lockdown this process was accelerated, and further actions were
taken, including the reduction of all non-essential expenditure, a
freeze on all non-essential recruitment and a redoubling of our
efforts around working capital resulting. All actions combined
generated total cost savings of GBP2.4m compared to the prior
financial year.
Encouragingly, improved levels of trading have continued into
July, and all sites and manufacturing locations are now fully
operational. Each location has implemented appropriate social
distancing requirements without any loss of productivity.
Order intake has matched the general pick-up in construction
activity and inquiry levels continue to be strong both in the UK
and from the Group's targeted overseas markets. There has also been
increased interest in the Group's premium and sustainable product
range, which is well positioned to benefit from the UK Government's
announced planned expenditure on a wide range of infrastructure and
public sector construction projects.
Balance sheet and liquidity
As at 30 June 2020, the Group had net debt of GBP4.3m (compared
to GBP5.1m at 30 June 2019). This is comfortably ahead of
management's expectations as at the start of the final quarter once
lockdown started, with leverage and interest cover metrics at 30
June 2020 well within covenant limits, reflecting the encouraging
recent trading performance and effective working capital focus. The
Company has also benefitted from a VAT deferral.
Group liquidity is strong with GBP15.7m cash held at 30 June
2020, following the draw down of the RCF. The Group's total bank
facilities are GBP24m, comprising the committed RCF of GBP20m and
overdraft facilities of GBP4m. Hence the Group had headroom of
GBP19.7m against its total banking facilities at 30 June 2020.
Outlook
Trading has been better than management expected at the outset
of COVID-19 and continues to show an improving trend, despite the
challenging environment.
Alumasc's cost savings programme, liquidity management, strong
balance sheet and improved commercial positioning underpin a robust
platform that should greatly benefit the Group into a broader
economic recovery when it materialises. Alumasc's primary aim is to
manage the long-term sustainability of the business and to focus on
its key strategic objectives, growing revenues faster than the UK
construction market and being a supplier of sustainable building
products.
Alumasc expects to release its preliminary results in September
2020. Given the uncertain economic backdrop, financial guidance
remains suspended at present, and the Board will provide an update
in September 2020.
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:
Paul Hooper, CEO + 44 (0) 1536 383844
Helen Ashton, Group Company Secretary + 44 (0) 1536 383812
Peel Hunt (Broker)
Mike Bell + 44 (0) 207 418 8831
Ed Allsopp
finnCap (NOMAD)
Julian Blunt + 44 (0) 207 220 0561
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. The three segments are:
Building Envelope; Water Management; and Housebuilding
Products.
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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