Alumasc Group PLC
08 April 2005
THE ALUMASC GROUP plc
Statement re MG Rover
Following recent developments at MG Rover, the Alumasc Board has issued the
following statement:
• While the future of MG Rover has been uncertain for some time, the
decline in terms of vehicle sales has been evident for many months.
• As declining volumes made business with Rover increasingly uneconomic,
Alumasc has taken necessary steps to protect its own business, including the
pursuit of new customers in other sectors.
• As a result of the actions taken, Alumasc's exposure to the Rover
group is limited to approximately £0.2 million, with a similar potential write
off of dedicated tooling, equipment, stocks etc.
• In the half year to December 2004, sales to MG Rover and Powertrain
amounted to £1.9 million, 3% of the group's sales. Additional sales of
£0.6 million (1% of the group's sales) were made to other suppliers to Rover.
• Paul Hooper, Chief Executive, commented "While developments at Rover
are a matter for regret, Alumasc has been reviewing manufacturing capacity in
the light of falling automotive demand and formal consultation has been under
way in one of our facilities since February. The aim is to align capacity with
the future needs of our customers while enhancing divisional profitability."
Note for Editors:
Alumasc is a high specification building products and precision engineering
company. In the year to June 2004, it made profit before tax of £8.9 million on
turnover of £115 million and had no borrowings at the year end. The precision
engineering division accounted for one third of group turnover and operating
profit.
Enquiries:
The Alumasc Group plc 01536-383 844
John McCall (Chairman)
Paul Hooper (Chief Executive)
Bankside Consultants Limited
Charles Ponsonby 020-7444 4166
This information is provided by RNS
The company news service from the London Stock Exchange
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