Final Results

Alumasc Group PLC 08 September 2 THE ALUMASC GROUP PLC - PRELIMINARY ANNOUNCEMENT Alumasc, the high specification engineering and building products group, announces a good year, particularly in its two principal activities, precision engineering and specification building products. • Compared with the previous year's continuing activities: Pre-tax profit increased by 8.0% to £8.1m (underlying*) and by 15.1% to £8.9m (reported). Basic earnings per share advanced by 8.8% to 16.1p (underlying*) and by 18.5% to 18.6p (reported). • Dividends per share are 6.3% higher at 9.3p. • Net cash increased to £3.3m from £1.5m. • Precision Components operating profit increased to £2.7m from £1.75m on turnover reduced to £36.8m from £37.4m. In what was overall an encouraging year, the declared strategy to develop into non-automotive markets progressed. • Industrial Products operating profit declined to £0.7m from £2.2m on turnover reduced to £38.0m from £43.8m. The turnover reduction was mainly accounted for by the severe slowdown in project activity at Alumasc Dispense, following last year's record performance. • Building Products increased its operating profit to £5.0m from £4.0m on turnover increased to £40.4m from £36.1m. Alumasc Exterior Building Products, Alumasc Interior Building Products and Alumasc Construction Products all enjoyed good years. Particular successes were project wins by Harmer engineered drainage systems, increased penetration into builders' merchants by Alumasc Interior Building Products, and a record year for sales and profit at Elkington Gatic. John McCall, Chairman, stated: "I spoke a year ago of our belief that the prospects for the coming year were dependent largely on our own actions in the light of tight market conditions. This is a fair description of the outcome, and I hesitate from drawing a significantly different picture one year later. Upward pressure on external costs continues, particularly in the case of energy. However, Alumasc has made real progress in the last three years which gives confidence in our ability to grow in those areas where we have genuine and demonstrable skills and strengths." * excluding profit on sale of land Paul Hooper, Chief Executive, added: "The strong final quarter of the year gives encouragement for the current financial year. Following the acquisitions of Roof-Pro and Timloc since the year end, there will continue to be a focus on using the Group's strong financial position to expand the Building Products division through further add-on acquisitions. In addition, there are a number of significant new projects for Alumasc Precision which will require further investment to increase capacity." Presentation From 09.30 to 10.30 today, a presentation to brokers' analysts and private client investment advisers is being held at the office of Williams de Broe, 6 Broadgate, London EC2M 2RP. Enquiries: The Alumasc Group plc 01536-383 844 John McCall (Chairman) Paul Hooper (Chief Executive) Bankside Consultants Limited Charles Ponsonby 020-7444 4166 Chairman's Statement 2004 Overview 2004 was a good year for Alumasc, particularly in our two principal activities - precision engineering and specification building products. The Group's pre-tax profits of £8.9 million (2003: £7.8 million on continuing activities) were ahead of the previous year by £1.1 million. Both years benefited from profits on the sale of land, and the increase before such profits was £ 0.6 million or 8.0%. Within the overall improvement, the core precision engineering and building products divisions grew operating profit by £1.9million, a 33% improvement on the previous year. This excellent result was achieved by a combination of increasing the sales of new products in both divisions, and improving the efficiency of our manufacturing operations. Profit margins improved as a result. Our industrial products activities performed less well, with market conditions significantly weaker than in the previous year. Earnings per share of 18.6p were 18.5% ahead of the previous year. Excluding the profits from the sale of land, earnings per share of 16.1p were 8.8% ahead. The Group's balance sheet continued to strengthen, with net cash of £3.3 million at the year-end, up from £1.5 million a year earlier. Dividends In keeping with its policy to grow dividends in line with earnings, the Board is recommending an increase in the total dividend per share for the year from 8.75p to 9.3p, equal to 0.55p or 6.3%. Following the rebalancing between interim and final payments which occurred during the year with an increase in the interim dividend per share from 2.45p to 3.0p, this equates to a recommended final dividend per share of 6.3p (2003: 6.3p). Strategy and Development The Board's determination to take advantage of the Group's strong market positions through increased sales activity, product development and add-on acquisitions bore fruit in the year with the growth in building products sales and an increasing contribution from the sale of new products. Since the year-end, in furtherance of this strategy, Alumasc acquired two building products companies. Roof-Pro Limited was acquired on 31 July 2004 for £3.0 million net of acquired cash. Roof-Pro manufactures and supplies support systems for equipment and services located on roofs, and will fit closely alongside the roofing products activities of Alumasc Exterior Building Products. Timloc Building Products Limited was acquired on 6 September 2004 for £3.25 million. Timloc manufactures and supplies cavity trays, ventilation products and loft access doors to the UK house building market. The Board views this sector as offering significant opportunities for expansion where the familiar characteristics of high performance, service and technical support are present. Financing these acquisitions was well within the Group's existing financial resources. I formally welcome Roof-Pro and Timloc to our Group. Following the closure of the Group's beer barrel activity in Burton-Upon-Trent during the previous year, contracts were exchanged for the sale of the 10 acre freehold site for £2.1 million in June 2004. This gave rise to a profit in the year of £0.8 million, in line with expectations at the time of closure, and the transaction was completed on 28 July 2004. As a result of its strong performance in the past year, assisted by the sale of surplus land, our Group continues to have ample resources with which to pursue its strategy of product innovation and related acquisitions. Prospects I spoke a year ago of our belief that the prospects for the coming year were dependent largely on our own actions in the light of tight market conditions. This is a fair description of the outcome and I hesitate from drawing a significantly different picture one year later. Upward pressure on external costs continues, particularly in the case of energy. However, Alumasc has made real progress in the past three years, which gives us confidence in our ability to grow in those areas where we have genuine and demonstrable skills and strength. J S McCall Chairman 8 September 2004 Chief Executive's Review Overview I am very pleased to report a third consecutive year of improvement in the Group's operations during 2004. In particular, the two core activities of Precision Components and Building Products moved their operating profit ahead strongly. The overall result from continuing activities was an operating profit of £8.2m, an increase of £0.5m (7%) on turnover of £115.3m (2003 : £117.4m) Our Building Products division achieved significant organic sales increases, as a result of increased sales and marketing activity combined with launches into new markets. The Industrial Products companies experienced reduced sales due to fewer countermount projects at Alumasc Dispense, and weaker markets combined with fierce competition faced by Brock and Bissell. Whilst Alumasc Precision moved its sales of complex components and assemblies forwards, this was offset by reductions in the gravity casting business. The net effect of these movements was a small reduction in the Group's turnover for the year. Costs in several areas, especially in manufacturing, benefited from efficiency improvements. This was particularly evident in the second half year. Across the Group, the year-end headcount had reduced by 8% (7% in the prior year). A keen focus on the utilisation of assets led to a tight control on capital expenditure in the year, which came in £1.2m below the depreciation charge. Trade working capital was well controlled. The Group finished the year with net cash of £3.3m versus £1.5m in the prior year. The strong final quarter of the year gives encouragement for the current financial year. Development In line with the Group's stated plan to grow through both organic and acquisition growth, two building products companies have been acquired since the year end. Roof-Pro Limited, acquired in July 2004, manufactures and supplies support systems for equipment and services located on roofs such as chillers, air conditioning plant and pipelines. These systems are specified by Mechanical and Electrical (M&E) engineers for new and refurbishment construction contracts and provide cost-saving flexibility in roof maintenance and repair. Roof-Pro's activities will fit closely with those of Alumasc Exterior Building Products (AEBP). Whilst Roof-Pro may be expected to benefit from AEBP's wide contacts in the UK construction industry, it will in turn provide AEBP with an entree into the growing M&E sector. The purchase price was £3.0m, excluding cash acquired, and it generated £0.7m pre-tax operating profit in the year to December 2003. Timloc Building Products Limited was acquired in early September 2004. Timloc manufactures and supplies a range of products to the UK house building market, including cavity trays, roof and wall ventilation products and loft access doors with a significant market position in each product range. Products are sold principally to builders' merchants and distributors for use in the construction of new houses. This acquisition increases Alumasc Building Products' activities in the house building sector and by the builders' merchant route. The house building sector is a relatively minor channel for Alumasc's existing activities and the Board views it as a significant opportunity for expansion where the familiar characteristics of high performance, service and technical support are present. Timloc matches these criteria and should benefit in turn from Alumasc's existing strengths in the marketing of specification building products. The purchase price was £3.25m and Timloc generated £0.5m pre tax operating profit in the year to December 2003. Both acquisitions should be immediately earnings enhancing for the Group. Prospects The Group will continue to invest in sales and marketing resources to drive sales forward. New products will be launched and new markets will be sought for the Group's established products. Manufacturing efficiency gains are still a focus and, to that end, there has been an increasing use of Six Sigma techniques to further help measure, analyse, improve and control processes in the Precision Components businesses. To date the Group has had some success in passing on increased raw material costs, relevant mainly to steel and cast iron products. Concern exists for the impact on energy costs currently emanating from high oil prices. Following the acquisition of Roof-Pro Limited and Timloc Building Products Limited, after the year end, there will continue to be a focus on using the Group's strong financial position to expand the Building Products Division through further add-on acquisitions. In addition, there are a number of significant new projects for Alumasc Precision which will require investment to increase capacity. The marketplaces in which the Group's businesses operate require management's proactive approach to ensure that the Group's three year record of profit growth is maintained. Precision Components Although sales reduced by £0.6m to £36.8m, added value, an equally important measurement of activity levels, grew in absolute terms and in proportion to sales. Operating profit grew by £0.9m (53%) to £2.7m. Within the automotive area there was a softening in demand from the more established customers. However, BMW continued as a highlight, with strong sales of the Mini Cooper S resulting in increased component demand. Volumes also ramped up for Saab in Sweden following a new engine launch. Outside the automotive area, sales to Caterpillar and Garrett Thermal Systems grew. New customers Deutz and Mercury Marine (through Garrett Thermal Systems) were welcomed and volumes began to uplift in the second half year. These customers match the declared strategy to develop into non-automotive markets. The size of such customers also gives future opportunities, especially once good supplier track records have been established. Increased business with Philips and Orangebox, the manufacturer of office chairs, further strengthened the non-automotive development. Alumasc Precision grew sales and improved its manufacturing efficiencies. Overhead recoveries were enhanced by a headcount which ended the year 13% lower than the prior year end. Copal went through a further restructuring process which produced a headcount 21% lower at the year end. In the final quarter of the year, its performance was greatly improved. Dyson performed well, improving its return on relatively flat sales. Overall, Precision Components had an encouraging year. Further project launches next year will build on this business's success in distinguishing itself by focusing on complex, high added value work. Industrial Products The Industrial Products companies had sales of £38.0m, a reduction of £5.8m compared to last year's continuing activities, mainly accounted for by Alumasc Dispense. Profit reduced by £1.5m (67%) to £0.7m. Following last year's record performance at Alumasc Dispense, there was a general slowdown in project activity, albeit several countermount projects were won such as ScotCo Fosters' 'Super Chilled', Carlsberg's 'Extra Cold' and Holsten. Business development continues with many international and regional brewers. Brock Metal had a challenging year, with market demand being affected by a softening in the UK demand for zinc, partly a reflection of a reduction in the size of the UK customer base. At the same time, market prices were driven down by competitive pressures. Export sales were developed. Aluminium profits were negatively affected by increased prices for scrap aluminium feed, driven by demand from China. Towards the year end, however, aluminium alloy manufacturing capacity reduced in the UK. This should help Brock in the current financial year. Bissell had a difficult year, with its performance being impacted by demand fluctuations in the UK and mainland Europe, compounded by steel cost increases and low market sales prices. Building Products The Building Products Division increased its profit by £1.0m (24%) to £5.0m on sales which were £4.3m (12%) ahead of the previous year at £40.4m. Alumasc Exterior Building Products Alumasc Exterior Building Products grew its sales through a further investment in sales and marketing. All brands moved ahead of the prior year. In particular, Harmer engineered drainage systems had a good year, driven by project wins. A highlight was the contract award for the Coventry Walsgrave Hospital. Sales in the final quarter were particularly good across all brands. The increased sales were the primary driver to increase AEBP's operating profit. Continued investment in sales and marketing, new product development and the recently acquired Roof-Pro, should help to drive this business forwards. Further investment in PFI projects, a new preferred supplier status for Alumasc Rainwater, and increased MR Walling brand sales, as the refurbishment of social housing stock gathers pace under the Government's Decent Homes initiative, will also help. Alumasc Interior Building Products Alumasc Interior Building Products had a good performance in the UK resulting in sales moving well ahead of the prior year. This was mainly driven by the success of the penetration into builders merchants, with 81 stocking branches in place at the year end. The roll-out into mainland Europe has, however, taken longer than expected to become established. Continuing negotiations with several large distribution channels could result in a greatly improved performance. In the current year, a focus will be maintained on sales into Europe as well as building on the success of last year's UK strategy. This will involve the further development of UK merchants combined with the targeting of specific UK markets. An increasing investment in sales and marketing will continue in support of the above. Alumasc Construction Products Elkington Gatic had another outstanding and record year for sales and profit. The company's access and drainage products had significant sales increases in both established and new markets. Within the UK, there was an increased level of airport activity for both commercial and military establishments. This was driven by airport expansion (such as Terminal 5 at Heathrow) and maintenance replacement work. Export sales also held up well, especially in Germany, the United Arab Emirates and Malaysia. The Gatic Slotdrain product continued its roll-out into supermarket car parks, retail parks and petrol station forecourts. Recent notable successes have been with Total and BP (at Stansted Airport). National UK stockist distribution has been established for Gatic Slotdrain which will build on the momentum gained for this fast growing product. Another highlight was the agreement reached with Saint Gobain to distribute Gatic engineered access covers on the Continent. Further manufacturing efficiencies were generated during the year, partly driven by increased sales volumes. To complete a very successful year, Elkington Gatic achieved the Environmental Standard ISO 14001. Elkington China performed well in a depressed market. It remained in profit by tailoring its cost structure to the revenues achieved. Sales continued for the Hong Kong Terminal 9 Container Project. Scaffold & Construction Products also had a record year, for both sales and operating profit. SCP's fast customer response business model has been a success and further products will be sought to market through its distribution channel. While raw material cost increases became a factor in the second half year, ACP has been broadly successful in passing these on. A further investment in sales and marketing along with a planned expansion into new geographical markets should continue the momentum into the current year. G P Hooper Chief Executive 8 September 2 Financial Review Results Total profit before tax rose from £4.5 million in 2003 to £8.95 million in 2004. The 2004 result includes a profit on sale of property of £0.88 million (2003: £0.31 million), and the prior year result was net of a £3.3 million loss on discontinued activities. Excluding these items, there was an 8% increase in profit before tax to £8.07 million (2003: £7.47 million), on turnover down 1.8% to £115.3 million (2003: £117.4 million). Within the result, there was a marked improvement in gross margin, up from 24.6% to 26.1%, reflecting aggressive action on manufacturing costs, and continued efficiency improvements in the utilisation of plant. Administrative expenses were largely unchanged, but the Group invested in additional marketing costs, including additional staff, although there was a headcount reduction on year end figures of 8% in total throughout the Group. Earnings, tax and dividend Earnings per share were 18.6 p (2003: 6.9p overall, 15.7p on continuing activities). The overall effective tax rate was 27.5 % (2003: 29.6% on continuing activities). Excluding the effect on the tax rate of the profit on land sales, the underlying effective rate is 30.5% (2003: 30.8% on continuing activities). The Board is recommending a 6.3% increase in the total dividend to 9.3p (2003: 8.75p) covered 2.0 times. A year ago the Board announced its intention to pay a higher proportion of the dividend at the interim stage. This was reflected in the increase in the interim dividend from 2.45p to 3.0p. The directors propose a final dividend of 6.3p (2003: 6.3p) payable on 29 October 2004 to shareholders on the register as at 8 October 2004. Shareholders' funds Shareholders' funds increased to £ 39.4million (2003: £36.1 million). Cash The Group continues to generate cash; net cash at 30 June 2004 was £3.3 million (2003: £1.5 million) even though £2.0 million of the proceeds from the sale of land at Burton-Upon-Trent was received after the year end. Capital expenditure was modestly up on prior year at £2.5 million (2003: £2.2 million) compared with depreciation of £3.6 million (2003: £4.0 million). Interest costs fell to £0.2 million (2003: £0.3 million). Pensions Following an increase in the actuarial deficits on both of the Group's final salary schemes reported in 2002 and 2003, the Group acted to reduce the cost of providing future pensions with effect from the last quarter of the year to 30 June 2004. Summary The results for 2004 show continuing advances in the Group's core activities and increased cash generation. Taken together with its nil gearing this leaves the Group well placed to make further acquisitions and fund its continuing growth from a solid base. Post balance sheet events Since 1 July 2004 the Group has acquired two building products businesses in pursuit of its policy of expanding by acquisition as well as organic growth in this area. On 31 July 2004 the Group acquired Roof-Pro Limited for a cash consideration of £3 million net of cash acquired and on 6 September 2004 the Group acquired Timloc Building Products Limited for a cash consideration of £3.25 million. D R Sowerby Group Finance Director 8 September 2004 CONSOLIDATED PROFIT AND LOSS ACCOUNT for the year ended 30 June 2004 2004 2003 ------- ------------------ Continuing Discontinued Total activities activities Total Notes £000 £000 £000 £000 Turnover 1 115,312 117,425 2,499 119,924 Cost of sales 85,209 88,555 2,086 90,641 ----------------------- -------- ------- ------- ------- ------- Gross profit 30,103 28,870 413 29,283 Selling and distribution costs 9,803 9,199 72 9,271 Administrative 12,054 11,933 392 12,325 expenses ----------------------- -------- ------- ------- ------- ------- Operating profit/ 1 8,246 7,738 (51) 7,687 (loss) Share of operating profit in associates 50 55 - 55 Profit on fixed asset disposals 880 305 - 305 Sale/ termination of businesses: ------- ------- ------- ------- ------- Business closure - - (875) (875) costs ------- ------- ------- ------- Goodwill write - - (2,388) (2,388) off ------- ------- ------- ------- - - (3,263) (3,263) Interest receivable 13 39 - 39 Interest payable (242) (361) - (361) ----------------------- -------- ------- ------- ------- ------- Profit/(loss) on ordinary activities before taxation 8,947 7,776 (3,314) 4,462 Taxation charge/(credit) 2,459 2,302 (246) 2,056 ----------------------- -------- ------- ------- ------- ------- Profit/(loss) on ordinary activities after taxation 6,488 5,474 (3,068) 2,406 Equity minority interest (7) (22) - (22) ----------------------- -------- ------- ------- ------- ------- Profit/(loss) for the financial year attributable to shareholders 6,481 5,452 (3,068) 2,384 Dividends 2 3,225 3,035 - 3,035 ----------------------- -------- ------- ------- ------- ------- Retained profit/ (loss) for the financial year 3,256 2,417 (3,068) (651) ----------------------- -------- ------- ------- ------- ------- Basic earnings per share 3 18.6p 15.7p (8.8)p 6.9p ----------------------- -------- ------- ------- ------- ------- Diluted earnings per share 3 18.5p 15.6p (8.8)p 6.8p ----------------------- -------- ------- ------- ------- ------- Dividend per share 2 9.3p 8.75p ----------------------- -------- ------- ------- ------- ------- Consolidated Statement of Total Recognised Gains and Losses for the year ended 30 June 2004 2004 2003 ---------------------------------- ---------- --------- £000 £000 Profit for the financial year attributable to shareholders 6,481 2,384 Currency translation differences on foreign currency net investments (6) (9) ---------------------------------- ---------- --------- Total recognised gains and losses for the year 6,475 2,375 ---------------------------------- ---------- --------- CONSOLIDATED BALANCE SHEET at 30 June 2004 Restated 2004 2003 £000 £000 Fixed assets Intangible assets 50 58 Tangible assets 25,901 28,411 Investments 515 493 ---------------------------- --------- --------- 26,466 28,962 --------- --------- Current assets Stocks 11,745 11,698 Debtors 26,875 24,192 Cash at bank and in hand 5,625 4,608 ---------------------------- --------- --------- 44,245 40,498 --------- --------- Creditors: amounts falling due within one year Trade and other creditors 24,966 25,608 Corporation tax 1,151 1,202 Proposed dividend 2,185 2,185 ---------------------------- --------- --------- 28,302 28,995 --------- --------- Net current assets 15,943 11,503 ---------------------------- --------- --------- Total assets less current liabilities 42,409 40,465 Creditors: amounts falling due after more than one year 1,907 3,656 Provisions for liabilities and charges 1,040 704 Equity minority interest 28 36 ---------------------------- --------- --------- Net assets 39,434 36,069 ---------------------------- --------- --------- Capital and reserves Called up share capital 4,352 4,352 Share premium 26,909 26,907 Revaluation reserve 1,727 1,874 Capital redemption reserve 693 693 Capital reserve - own shares (164) (164) Profit and loss account 5,917 2,407 ---------------------------- --------- --------- Equity shareholders' funds 39,434 36,069 ---------------------------- --------- --------- CONSOLIDATED CASH FLOW STATEMENT for the year ended 30 June 2004 2004 2003 £000 £000 Net cash inflow from operating activities 9,637 9,464 ------------------------------ -------- --------- Returns on investments and servicing of finance Interest received 13 39 Interest paid (85) (147) Interest element of lease/ hire purchase payments (157) (214) Dividends paid to minority interests (15) (16) --------------------------------- ------ --------- Net cash outflow from returns on investments and servicing of finance (244) (338) --------------------------------- ------ --------- Taxation UK corporation tax paid (2,192) (2,095) ------------------------------ -------- --------- Capital expenditure and financial investment Purchase of tangible fixed assets (2,490) (2,217) Proceeds from sale of tangible fixed assets 264 1,520 ------------------------------ -------- --------- (2,226) (697) -------- --------- Acquisitions and disposals Sale of subsidiary undertaking - 109 Net cash disposed of with subsidiary undertaking - (108) ------------------------------ -------- --------- - 1 -------- --------- Equity dividends paid (3,225) (2,948) ------------------------------ -------- --------- Cash inflow before use of liquid resources and 1,750 3,387 financing -------- --------- ------------------------------ Financing Issue of ordinary share capital 2 - Repayment of amounts borrowed (735) (688) ------------------------------ -------- --------- (733) (688) -------- --------- Increase in cash in the year 1,017 2,699 ------------------------------ -------- --------- Notes on the Accounts for the year ended 30 June 2004 1 Analysis of turnover and profits between activities and markets Turnover comprises the invoice value of goods and services supplied by the Group exclusive of VAT and intragroup transactions. Turnover and profit on ordinary activities before taxation attributable to each of the classes of activity of the Group are as follows: Segmental analysis 2004 2003 ------------ ------ ---------------- Continuing activities Turnover Total profit Turnover Total profit profit £000 £000 £000 £000 £000 Engineering Products - Precision Components 36,836 2,684 37,440 1,749 1,749 - Industrial Products 38,046 747 46,285 2,196 2,259 Building Products 40,430 4,954 36,132 3,986 3,986 Leonardo - - 67 12 - ------------------------ ------- ------- ------ ------ ------ Sub total 115,312 8,385 119,924 7,943 7,994 Pension deficit cost (139) (256) (256) ------------------------ ------- ------- ------ ------ ------ 115,312 8,246 119,924 7,687 7,738 ------------------------ ------- ------- ------ ------ ------ Share of operating profit in associates 50 55 55 Profit on sale of land 880 305 305 Business closure costs - (875) - Goodwill write - (2,388) - off Net (229) (322) (322) interest ------------------------ ------- ------- ------ ------ ------ 8,947 4,462 7,776 ------------------------ ------- ------- ------ ------ ------ Engineering Products has been split between Precision Components and Industrial Products, to highlight the relative performance of the two subdivisions. Comparative figures have been restated to show the split on the same basis. The amounts disclosed as pension deficit cost have been shown separately because they relate to closed schemes, 89% of whose members are not now employed by the Group. Geographical analysis All business operations are located in the United Kingdom and all turnover is generated there with the exception of Elkington China Limited, based in Hong Kong, whose turnover is not significant. NOTES TO THE ACCOUNTS for the year ended 30 June 2004 Turnover by destination is as follows: 2004 2003 2003 Continuing Total activities Total £000 £000 £000 United Kingdom 94,236 100,377 102,876 Europe - EU 13,127 12,514 12,514 - Non EU 1,069 680 680 Other 6,880 3,854 3,854 -------------------------- -------- ------- -------- 115,312 117,425 119,924 -------------------------- -------- ------- -------- 2 Dividends 2004 2003 £000 £000 Interim dividend of 3.0p per share (2003: 2.45p), paid 6 April 2004 1,040 850 Proposed final dividend of 6.3p per share (2003: 6.3p), payable 29 October 2004 2,185 2,185 ------------------------------------- ------ -------- 3,225 3,035 ------ -------- 3 Earnings per share Both the earnings per share and the diluted earnings per share are based on the profit after tax attributable to shareholders for the financial year of £6,481,000 (2003: £2,384,000). Earnings per share is based on the weighted average number of ordinary shares in issue during the year ended 30 June 2004 of 34,817,592 (2003: 34,816,788). Diluted earnings per share is based on the weighted average number of ordinary shares in issue during the year, after allowing for the exercise of outstanding share options, of 34,980,410 (2003: 34,864,434). 4 Reconciliation of movement in shareholders' funds Restated 2004 2003 £000 £000 Profit attributable to shareholders 6,481 2,384 Dividends (3,225) (3,035) ------------------------------------- ------ -------- 3,256 (651) Exchange difference (6) (9) New shares issued 2 - UITF 17 charge on long-term incentive plan 113 - Goodwill written back on disposals - 2,388 ----------------------------------- -------- -------- Net increase in shareholders' funds 3,365 1,728 Opening shareholders' funds 36,069 34,341 ----------------------------------- -------- -------- Closing shareholders' funds 39,434 36,069 ----------------------------------- -------- -------- 5 Post balance sheet events On 31 July 2004 the Company completed the acquisition of Roof-Pro Limited for a cash consideration of £3 million, net of cash acquired. On 6 September 2004 the Company completed the acquisition of Timloc Building Products Limited for a cash consideration of £3.25 million, based upon a value of net assets acquired of £1.5 million. Any variation in this figure, determined by completion accounts, will reflect in the appropriate adjustment to the purchase price. 6 Audited Accounts The above financial information is derived from the statutory accounts for the years ended 30 June 2004 and 30 June 2003, on both of which the auditors have issued an unqualified opinion. The information does not constitute statutory accounts as defined in Section 240 (1) of the Companies Act 1985. The accounts for the year ended 30 June 2003 have been filed with the Registrar of Companies and the accounts for the year ended 30 June 2004 will be filed in due course. Copies of the Annual Report and Accounts will be posted to all shareholders on 15 September 2004. Copies will be available from the Company Secretary, The Alumasc Group plc, Burton Latimer, Kettering, Northamptonshire, NN15 5JP, and can be viewed on www.alumasc.co.uk from 16 September 2004. This information is provided by RNS The company news service from the London Stock Exchange
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