Trading Statement

RNS Number : 0821M

Alumasc Group PLC

19 January 2021

 

19 January 2021

THE ALUMASC GROUP PLC

("ALUMASC")

TRADING UPDATE FOR SIX MONTHS ENDED 31 DECEMBER 2020

Alumasc, the premium building products, systems, and solutions Group, today provides a trading update for the six months ended 31 December 2020, ahead of publication of its half-year results on Thursday 4 February 2021.

Our absolute focus continues to be the safety of our employees, customers, suppliers, and sub-contractors as we continue to manage with the Covid-19 pandemic and the latest lockdown guidelines.

Record Half Year Performance

Further to our AGM Trading Update on 22 October 2020, which reported a strong performance in the first quarter, we are very pleased to report that conditions in our markets have remained positive and that the Group's trading performance has continued through to the end of the first half of the financial year, with a record profit for the period being achieved. On an unaudited basis, for the first six months of the year:

· Revenue increased 11% versus the prior year to £45.6m

· Underlying PBT increased significantly, from £2.3m to £6.0m

· Cash generation has also been strong in the first half, with net bank debt reducing from £4.3m at 30 June 2020 to £0.2m at 31 December 2020.

Pleasingly, all our divisions have contributed to the strong performance. While trading in the period includes an element of catch-up demand following the UK's first national lockdown and has benefitted from a range of Government support for the construction industry, our businesses have also been successful in winning market share and have been further supported by encouraging export sales. Additionally, the restructuring during FY2020, which provided £2.4 million in annual cost savings, benefitted margins. Levolux also continues to respond well to the business's turnaround plan, achieving a profit in each month of the first half of this financial year.

Outlook

The business has entered H2 with good momentum, a healthy forward sales position, and a well-capitalised balance sheet, creating the potential to deliver a strong result for the year. Nevertheless, we remain mindful of the continued economic uncertainties, particularly the risk of disruption to our business and markets in the near term as a result of the on-going pandemic and the establishment of efficient cross-border goods movement following the entry into the Free Trade Agreement with the EU. Conditions in our markets, particularly in the new build housing and RMI sectors, have been very supportive coming into the second half and we would anticipate demand remaining good through the coming months. We are also continuing to monitor the potential impact of changes to UK Government incentives within the housebuilding industry, notably around the current Help to Buy Scheme being extended beyond 28 February 2021 and Stamp Duty and changes here may affect our final quarter, albeit the potential impact is difficult to predict. However, we are encouraged by the UK's accelerating rollout of vaccines and mass testing, which should provide some counterbalance in our markets. Overall, this has been a most encouraging performance by Alumasc in the first half and there is an excellent platform to deliver sustainable shareholder value.

Paul Hooper, CEO, commented, "It is very encouraging to see Alumasc's achievement of a double digit growth in revenues and also a double digit return on sales and H1 has absolutely shown the great potential for the Group. In light of the businesses' momentum and strong cash conversion, a resumption of Alumasc's previous dividend policy is being considered by the Board."

This announcement contains inside information.

Enquiries:

Paul Hooper, CEO Helen Ashton, Group Company Secretary

+ 44 (0) 1536 383844 + 44 (0) 1536 383812

Peel Hunt (Broker) 

Mike Bell     + 44 (0)207 418 8831

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: [e-mail]

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: Water Management; Building Envelope; and Housebuilding Products.

 

END

 

 

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