Half Yearly Report

RNS Number : 7066N

Alumasc Group PLC

02 February 2016

IMMEDIATE RELEASE

2 February 2016

THE ALUMASC GROUP PLC - INTERIM RESULTS ANNOUNCEMENT

Alumasc (ALU.L), the premium building and engineering products group, announces interim results for the six months ended 31 December 2015.

Half year financial highlights
Half year to 31 December	2015	2014	% change
Continuing operations:

Order book at 31 December (£m)	27.4	19.2	+42%

Revenue (£m)	43.5	45.2	-4%

Underlying profit before tax (£m)*	4.0	3.7	+8%

Underlying earnings per share (pence)*	8.9	8.1	+10%

Profit before tax (£m)	3.2	2.9	+12%
Total group (including discontinued operations):

Basic earnings per share (pence)	7.6	6.6	+15%

Dividends per share (pence)	2.7	2.5	+8%

Net cash/(debt) at 31 December (£m)	0.5	(7.7)

^* Underlying profits and earnings per share from continuing operations are stated prior to the deduction of brand amortisation charges of £0.1 million (2014: £0.1 million) and IAS19 pension costs of £0.7 million (2014: £0.7 million).

Key points

· Alumasc's strategy is to focus on premium Building Products & Solutions and the Board believes there are numerous exciting organic and synergistic growth opportunities to capitalise on Alumasc's market leading positions in niche segments.

· In line with this strategic goal and further to last year's disposal of loss-making APC, the Board has initiated a process for the disposal of Dyson Diecastings, the group's last remaining Engineering Products business.

· Excluding two exceptionally large projects (Kitimat and Chiswick Park) completed last year, Building Products achieved 4% growth in underlying revenues with operating margins up to 10.8%, enabling divisional operating profit to rise 3% to £4.7m.

· Building Products order books rose to £27.4m at 31 December 2015 (30 June 2015: £24.0m; 31 December 2014: £19.2m). Most of the increase relates to Levolux and will benefit the group's 2016/17 financial year and beyond.

· Solar Shading & Screening saw Levolux establish a sustainable and growing business in North America and its UK business is being expanded to supply bespoke balconies to prestigious housing and commercial developments. Levolux's order book increased 28% to £19.9m. Financial performance as expected with operating profit up 20% to £462k on sales down 7% to £7.6m.

· Roofing & Walling revenue down 12% to £18.4m, in part reflecting last year's Kitimat project. Performance earlier in the financial year was impacted by delays to refurbishment projects caused by short-term factors in the wider contractual chain. The reduction in Green Deal funding is being offset by developing new build business including the Alumasc Ventilated System. Operating profit down 32% to £1.8m.

· Water Management operating profit up 64% to £1.9m on revenue up 8% to £14m with financial performance benefiting from the holistic approach to sales and customer service following the introduction of AWMS last July. Particularly strong performances came from Alumasc Rainwater and Gatic Slotdrain in domestic markets; new products (including Gatic Filcoten and Harmer SML Below Ground); and Gatic access covers, including some recovery of demand in South-East Asia. Relocation to new site in Kettering delayed 6 to 12 months.

· Housebuilding & Ancillary Products operating profit up 33% to £573k on revenue up 9% to £4.1m. Timloc delivered another record first half performance and, in order to facilitate future growth, will relocate to new leased premises in the Goole area over the next 12 to 18 months.

Paul Hooper, Chief Executive, commented:

"Alumasc is pleased to announce earnings growth for the fourth consecutive first half year.

With the group expected to benefit from its normal seasonal trading bias in favour of the second half of the financial year, the Board's previous expectations for the group's full year performance remain unchanged.

Against a background of further UK growth in demand for premium building products for sustainable building, and with growing order books and continuing success in developing our overseas presence, Alumasc is well positioned to make further progress beyond this financial year."

Enquiries:

The Alumasc Group plc	01536 383844
Paul Hooper (Chief Executive) Andrew Magson (Finance Director)

Glenmill Partners Limited	07771 758517

Simon Bloomfield

REVIEW OF INTERIM RESULTS

Overview and highlights

Alumasc is pleased to announce earnings growth for the fourth consecutive first half year:

· Underlying earnings per share from continuing operations advanced by 10% to 8.9 pence per share (2014: 8.1 pence) and basic earnings per share grew by 15% to 7.6 pence (2014: 6.6 pence).

· These improved results were driven by continued profitable growth in Alumasc's water management and housebuilding products businesses, lower financing charges and the successful disposal of the loss making Alumasc Precision Components business in June 2015.

· Cash remains well controlled and the group continues to be free of any net indebtedness. Net cash at 31 December 2015 was £0.5 million (30 June 2015: net cash of £0.9 million; 31 December 2014 net debt of £7.7 million).

· Building products order books rose to £27.4 million at 31 December 2015 (30 June 2015: £24.0 million; 31 December 2014: £19.2 million). Most of the increase relates to Levolux and will benefit the group's 2016/17 financial year and beyond.

· In view of all the above, the Board has decided to increase the interim dividend by 8% to 2.7 pence per share (2014: 2.5 pence).

Strategic development

The group's strategy for future growth is to position Alumasc as a focused supplier of premium building products and solutions, particularly those which add value in conserving and managing the scarce resources of energy and water in the built environment. The Board believes there are numerous exciting organic and synergistic growth opportunities which have been identified to capitalise on Alumasc's market leading positions in niche segments.

In line with this strategic goal, and further to the successful disposal of Alumasc Precision Components last summer, the Board has initiated a sale process for the group's last remaining Engineering Products business, Dyson Diecastings ("Dyson"). Accordingly, Dyson has been treated as a discontinued operation in this interim statement.

Operating Review

(a) Continuing operations - Building products

UK demand for Alumasc's building products continues to grow. While headline divisional revenues were 4% lower than in the first half of the prior year at £43.5 million, order books grew from £24.0 million to £27.4 million in the period under review. We also continue to develop export markets. Reported revenues for the half year reflect the non-repeat of the two exceptionally large projects, Kitimat and Chiswick Park building 7 ("CP7"), that benefited the first half of the previous financial year, and delays to a number of projects in our roofing and walling business. When Kitimat and CP7 are excluded from prior period comparators, our remaining building products revenues were ahead on a like-for-like basis by around 4%.

Divisional operating margins improved to 10.8% compared to 10.1% in the first half of the last financial year, reflecting a combination of the resolution of the operational and capacity issues described in this report a year ago and the benefit of operational gearing following further growth in our water management and housebuilding products businesses. This enabled divisional operating profits to grow by 3% to £4.7 million.

Solar shading and screening

Levolux's principal achievements in the first half of the financial year were the delivery of a substantial increase in its order book, further establishing a sustainable and growing business in North America and developing an exciting business to supply bespoke balconies to prestigious housing and commercial developments. The order book grew from £15.6 million at 30 June 2015 to £19.9 million at 31 December 2015, and order intake over the last 12 months of £23.0 million has been higher than that ever previously achieved by the business and significantly higher than revenues over the last twelve months of £15.4 million. Some £11.4 million of the order book is expected to convert into revenue in the 2016/17 financial year and beyond, including the £3 million project announced in October to screen a power plant on the eastern seaboard of the USA, Levolux's largest order so far in North America. The developing balconies business is complementary to the existing solar shading and control business, building on Levolux's strengths of design, project management and delivery whilst leveraging existing sales channels and supply chains.

In the absence of work on any large projects in the period under review, Levolux's trading performance in the first half of this financial year was satisfactory, delivering slightly higher profits from slightly lower revenues when compared to the same period a year ago, reflecting good project execution and a higher number of project completions in the period under review.

Roofing & walling

These businesses again performed strongly by historical standards. However, as expected, it was not possible to improve on last year's record results in the absence of a replacement for the large Kitimat smelter refurbishment contract in Canada. Performance in the earlier part of the financial year was affected by delays to a number of refurbishment projects caused by short-term factors in the wider contractual chain beyond Alumasc's control. Alumasc Facades is also being impacted by lower housing refurbishment work in England and Wales as Green Deal funding comes to an end and therefore continues to develop its new build business. Specification banks for the recently launched Alumasc Ventilated System are promising and continue to grow.

Water Management

Alumasc's water management businesses grew both revenues and profits strongly, including benefiting from the more holistic approach to sales and customer service following the introduction of the Alumasc Water Management Solutions ("AWMS") umbrella brand last July. In particular, there were strong performances from Alumasc Rainwater and a much better first half than last year in domestic markets for Gatic Slotdrain. New products introduced during the period, including Gatic Filcoten and Harmer SML Below Ground, performed well and these should continue to gain traction. In addition, Gatic's access covers business performed well, including some recovery of demand in South-East Asia.

Plans to relocate Alumasc's rainwater & drainage businesses to a new site in the Kettering area have been delayed by 6 to 12 months due to issues with the initially preferred relocation site. A number of alternative options are being evaluated.

Housebuilding & ancillary products

Timloc delivered another record first half performance, benefiting from growing demand, an expanding product range and operational efficiencies. Further new products that will enable us to leverage existing sales channels are being planned for launch later in the year. As part of previously announced plans to facilitate future growth, Timloc will relocate to new leased premises in the Goole area over the next 12 to 18 months.

(b) Discontinued operation - Dyson Diecastings

This was a difficult period for UK based die-casters supplying international OEMs in automotive and off highway diesel markets, characterised by slowing growth rates in developing markets, impacting the construction and mining equipment sub-sectors in particular and resulting in significant customer de-stocking. Against this background, Dyson, with its diversified customer base and focus on precision engineered, smaller die-cast and machined parts for niche applications, performed relatively well, with half year revenues down by 11% to £3.5 million and operating profits lower by £0.1 million at £0.2 million. The recently strengthened management team continues to develop opportunities for new work, whilst improving operational efficiencies.

In view of the success of Alumasc's strategy to increase its focus on building products activities over recent years and the successful sale last year of Alumasc Precision Components, Dyson's sister business, the Board believes that Dyson's future would be better served under different ownership. Accordingly, this business is now being actively marketed for sale.

Cash flow, pensions and balance sheet

Cash management in Alumasc continues to be a key area of focus, and the group ended 2015 with net cash resources of £0.5 million (30 June 2014: net cash of £0.9 million; 31 December 2014: net debt of £7.7 million). There was a modest net cash outflow of £0.5 million in the six months to 31 December 2015 reflecting some investment in working capital to support anticipated growth and the purchase of £0.4 million of Alumasc shares by the group's employee share trust. Capital expenditure of £0.8 million in the period related mainly to routine replacement of assets and the completion of work on new business systems at Levolux and Timloc, both of which were successfully introduced in the period. The lower average level of net debt experienced in the half year under review resulted in a reduction in the group's interest costs on borrowings to £0.1 million from £0.3 million in the first six months of the prior financial year. Given the delay to the investment in the new Kettering property described above, the group is now unlikely to incur any significant net indebtedness for another 12 months.

The group's pension deficit measured for accounting purposes under IAS19 was £19.5 million at 31 December 2015, an improvement on the 30 June 2015 position of £20.9 million mainly due to lower long term inflation expectations. The deficit remains high by historical standards due to continued low discount rates that are used to discount future pension payments into present values. The company's current obligations to make deficit funding contributions to its legacy defined benefit pension schemes will be re-assessed following the forthcoming triennial valuation due in March 2016.

There have been no significant changes to the group's balance sheet in the period under review. Shareholders' funds increased over the six months to 31 December 2015 to £17.3 million from £15.9 million at 30 June 2015, mainly reflecting retained post tax profits.

Outlook

More broadly, against a background of further UK growth in demand for premium building products for sustainable building, and with growing order books and continuing success in developing our overseas presence, Alumasc is well positioned to make further progress beyond this financial year.

Paul Hooper, Chief Executive

2 February 2016

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

for the half year to 31 December 2015

		Half year to 31 December 2015		Half year to 31 December 2014	Year to 30 June 2015
			(Unaudited)	(Unaudited)	(Audited)
Continuing operations:	Notes		£'000	£'000	£'000

Revenue	4		43,468	45,179	90,295
Cost of sales			(28,904)	(31,104)	(60,741)
Gross profit			14,564	14,075	29,554

Net operating expenses			(10,849)	(10,508)	(21,963)

Operating profit	4		3,715	3,567	7,591

Finance income	6		-	2	5
Finance expenses	6		(473)	(664)	(1,308)
Profit before taxation			3,242	2,905	6,288

Tax expense	8		(663)	(744)	(1,483)
Profit for the period			2,579	2,161	4,805

Discontinued operations:
Profit/(loss) after taxation for the period from discontinued operations	5		132	206	(429)

Profit for the period			2,711	2,367	4,376
Other comprehensive income

Items that will not be recycled to profit or loss:
Actuarial gain/(loss) on defined benefit pensions	2		542	(4,334)	(4,726)
Tax on actuarial (gain)/loss on defined benefit pensions			(517)	815	945
			25	(3,519)	(3,781)
Items that are or may be recycled subsequently to profit or loss:
Effective portion of changes in fair value of cash flow hedges			170	34	(179)
Exchange differences on retranslation of foreign operations			(4)	20	17
Tax on cash flow hedge			(35)	(5)	43
			131	49	(119)

Other comprehensive profit/(loss) for the period, net of tax			156	(3,470)	(3,900)
Total comprehensive profit/(loss) for the period, net of tax			2,867	(1,103)	476

Earnings per share			Pence	Pence	Pence

Basic earnings per share
- Continuing operations			7.2	6.0	13.5
- Discontinued operations			0.4	0.6	(1.2)
	11		7.6	6.6	12.3
Diluted earnings per share
- Continuing operations			7.0	5.9	13.3
- Discontinued operations			0.4	0.6	(1.2)
	11		7.4	6.5	12.1

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

at 31 December 2015

	31 December				31 December	30 June
	2015 (Unaudited)				2014 (Unaudited)	2015 (Audited)
	£'000				£'000	£'000
Assets
Non-current assets
Property, plant and equipment	5,310				7,457	7,473
Goodwill				16,488	16,488	16,488
Other intangible assets	2,802				2,818	2,831
Financial asset investments			17		17	17
Deferred tax assets			3,509		4,285	4,187
			28,126		31,065	30,996
Current assets
Inventories			9,639		10,259	10,592
Biological assets	47				144	75
Trade and other receivables	14,915				18,468	20,317
Cash and cash equivalents	5,404				3,205	5,914
Derivative financial assets	-				29	-
Assets classified as held for sale			3,978		9,799	-
			33,983		41,904	36,898

Total assets			62,109		72,969	67,894

Liabilities
Non-current liabilities
Interest bearing loans and borrowings	(4,893)				(10,918)	-
Employee benefits payable	(19,492)				(21,418)	(20,935)
Provisions			(1,129)		(954)	(1,224)
Deferred tax liabilities			(415)		(1,267)	(390)
			(25,929)		(34,557)	(22,549)
Current liabilities
Interest bearing loans and borrowings		-			-	(5,000)
Trade and other payables		(16,832)			(18,966)	(23,338)
Provisions			(396)		(681)	(402)
Corporation tax payable			(574)		(417)	(429)
Derivative financial liabilities			(77)		(34)	(247)
Liabilities classified as held for sale			(1,018)		(3,346)	-
			(18,897)		(23,444)	(29,416)

Total liabilities			(44,826)		(58,001)	(51,965)

Net assets			17,283		14,968	15,929

Equity
Called up share capital	4,517				4,517	4,517
Share premium				445	445	445
Capital reserve - own shares	(968)				(618)	(618)
Hedging reserve			(63)		(33)	(198)
Foreign currency reserve			45		52	49
Profit and loss account reserve			13,307		10,605	11,734
Total equity			17,283		14,968	15,929

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

for the half year to 31 December 2015

	Half year to		Half year to	Year to
	31 December		31 December	30 June
		2015 (Unaudited)	2014 (Unaudited)	2015 (Audited)
		£'000	£'000	£'000
Operating activities
Operating profit		3,715	3,567	7,591
Adjustments for:
Depreciation		431	433	905
Amortisation		194	184	332
Gain on disposal of property, plant and equipment		(3)	(4)	(14)
Decrease/(increase) in inventories		129	(880)	(1,216)
Decrease in biological assets		28	27	96
Decrease/(increase) in receivables		3,936	(597)	(1,963)
(Decrease)/increase in trade and other payables		(4,944)	(809)	2,510
Movement in provisions		(101)	367	358
Cash contributions to retirement benefit schemes		(1,250)	(1,250)	(2,500)
Share based payments		123	27	300
Cash generated from continuing operations		2,258	1,065	6,399

Operating profit/(loss) from discontinued operations		167	(724)	(896)
Depreciation and amortisation		70	506	1,050
Movement in working capital from discontinued operations		26	180	526
Cash generated/(absorbed) from/(by) discontinued operations		263	(38)	680

Tax paid		(401)	(456)	(907)
Net cash inflow from operating activities		2,120	571	6,172

Investing activities
Purchase of property, plant and equipment		(617)	(587)	(1,114)
Payments to acquire intangible fixed assets		(160)	(232)	(322)
Proceeds from sales of property, plant and equipment		18	4	60
Proceeds from sale of business activity		-	1,408	6,168
Interest received		-	2	5
Net cash (outflow)/ inflow from investing activities		(759)	595	4,797

Financing activities
Interest paid		(112)	(207)	(408)
Equity dividends paid		(1,248)	(998)	(1,889)
Draw down of amounts borrowed		5,000	1,000	-
Repayment of amounts borrowed		(5,000)	-	(5,000)
Refinancing costs		(119)	-	-
Purchase of own shares		(388)	-	-
Net cash outflow from financing activities		(1,867)	(205)	(7,297)

Net (decrease)/increase in cash and cash equivalents		(506)	961	3,672

Net cash and cash equivalents brought forward		5,914	2,224	2,224
Effect of foreign exchange rate changes		(4)	20	18
Net cash and cash equivalents carried forward		5,404	3,205	5,914

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the half year to 31 December 2015
	Share	Share	Capital reserve -	Hedging	Foreign currency	Profit and loss account
	capital	premium	own shares	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000

At 1 July 2015	4,517	445	(618)	(198)	49	11,734	15,929
Profit for the period	-	-	-	-	-	2,711	2,711
Exchange differences on retranslation of foreign operations	-	-	-	-	(4)	-	(4)
Net gain on cash flow hedges	-	-	-	170	-	-	170
Tax on derivative financial liability	-	-	-	(35)	-	-	(35)
Actuarial gain on defined benefit pension schemes, net of tax	-	-	-	-	-	25	25
Dividends	-	-	-	-	-	(1,248)	(1,248)
Share based payments	-	-	-	-	-	123	123
Acquisition of own shares	-	-	(350)	-	-	-	(350)
Exercise of share based incentives	-	-	-	-	-	(38)	(38)
At 31 December 2015	4,517	445	(968)	(63)	45	13,307	17,283

	Share	Share	Capital reserve -	Hedging	Foreign currency	Profit and loss account
	capital	premium	own shares	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000

At 1 July 2014	4,517	445	(618)	(62)	32	12,728	17,042
Profit for the period	-	-	-	-	-	2,367	2,367
Exchange differences on retranslation of foreign operations	-	-	-	-	20	-	20
Net gain on cash flow hedges	-	-	-	34	-	-	34
Tax on derivative financial liability	-	-	-	(5)	-	-	(5)
Actuarial loss on defined benefit pension schemes, net of tax	-	-	-	-	-	(3,519)	(3,519)
Dividends	-	-	-	-	-	(998)	(998)
Share based payments	-	-	-	-	-	27	27
At 31 December 2014	4,517	445	(618)	(33)	52	10,605	14,968

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

for the half year to 31 December 2015

1. Basis of preparation

The condensed consolidated interim financial statements of The Alumasc Group plc and its subsidiaries have been prepared on the basis of International Financial Reporting Standards (IFRS), as adopted by the European Union, that are effective at 31 December 2015.

The condensed consolidated interim financial statements have been prepared using the accounting policies set out in the statutory accounts for the financial year to 30 June 2015 and in accordance with IAS34 "Interim Financial Reporting".

The consolidated financial statements of the group as at and for the year ended 30 June 2015 are available on request from the company's registered office at Burton Latimer, Kettering, Northants, NN15 5JP or at the website www.alumasc.co.uk.

The comparative figures for the financial year ended 30 June 2015 are not the company's statutory accounts for that financial year but have been extracted from those accounts. Those accounts have been reported on by the company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The comparative figures for the financial year ended 30 June 2015 and the six month period ended 31 December 2014 have been re-classified to show Dyson Diecastings as a discontinued operation.

The condensed consolidated interim financial statements for the half year ended 31 December 2015 are not statutory accounts and have been neither audited nor reviewed by the group's auditors. They do not contain all of the information required for full financial statements, and should be read in conjunction with the consolidated financial statements of the group as at and for the year ended 30 June 2015.

These condensed consolidated interim financial statements were approved by the Board of Directors on

2 February 2016.

On the basis of the group's financing facilities and current financial plans and sensitivity analyses, the Board is satisfied that the group has adequate resources to continue in operational existence for twelve months from the date of signing this report and accordingly continues to adopt the going concern basis in preparing these condensed consolidated interim financial statements.

2. Estimates

The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, income and expense. Actual results may differ from these estimates.

Except as described below, in preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 June 2015.

During the six months ended 31 December 2015, management reassessed and updated its estimates in respect of retirement benefit obligations based on market data available at 31 December 2015. The resulting impact was a £0.5 million pre-tax actuarial gain, calculated using IAS19 conventions, recognised in the six month period to 31 December 2015.

3. Risks and Uncertainties

A summary of the group's principal risks and uncertainties was provided on pages 16 and 17 of Alumasc's Report and Accounts 2015. The Board considers these risks and uncertainties remain relevant to the current financial year.

Alumasc can experience changes to the timing of construction projects, including those installed by third parties, that are beyond the group's control. Such changes could impact the timing of revenue and profit recognition in the second half year.

Alumasc is in discussions with a number of parties to sell the Dyson Diecastings business. Current expectations are that the carrying value of the business of £3.0 million will be recovered on sale. However, depending on the final outcome agreed, sales proceeds could differ from the book value at 31 December 2015.

4. Segmental analysis - continuing operations

Since Alumasc's Report and Accounts 2015, the operating segments of The Alumasc Group have been re-aligned to reflect changes to internal management responsibilities. Dyson Diecastings, as a discontinued operation, has also now been excluded from this disclosure. The segmental analysis of comparative data for the periods ending 31 December 2014 and 30 June 2015 have therefore been re-presented.

	External	Inter-segment		Revenue Total	Segmental Operating Result
	£'000	£'000		£'000	£'000
Half Year to 31 December 2015

Solar Shading & Screening	7,620	-		7,620	462
Roofing & Walling	18,409	2		18,411	1,755
Water Management	13,342	688		14,030	1,907
Housebuilding & Ancillary Products	4,097	-		4,097	573
Sub-total	43,468	690		44,158	4,697

Elimination/Unallocated costs	-	(690)		(690)	(570)

Total	43,468	-		43,468	4,127

					£'000

Segmental operating result					4,127
Brand amortisation					(134)
IAS 19 pension scheme administration costs					(278)

Total operating profit from continuing operations					3,715

	External	Inter-segment	Revenue Total		Segmental Operating Result
	£'000	£'000	£'000		£'000
Half Year to 31 December 2014 (re-stated)

Solar Shading & Screening	8,159	-	8,159		386
Roofing & Walling	20,870	5	20,875		2,589
Water Management	12,383	584	12,967		1,161
Housebuilding & Ancillary Products	3,767	-	3,767		432
Sub-total	45,179	589	45,768		4,568

Elimination/Unallocated costs	-	(589)	(589)		(597)

Total	45,179	-	45,179		3,971

					£'000

Segmental operating result					3,971
Brand amortisation					(134)
IAS 19 pension scheme administration costs					(270)

Total operating profit from continuing operations					3,567

	External	Inter-segment	Revenue Total	Segmental Operating Result
Full Year to 30 June 2015 (re-stated)

Solar Shading & Screening	16,007	-	16,007	929
Roofing & Walling	40,577	8	40,585	4,461
Water Management	25,935	1,109	27,044	3,272
Housebuilding & Ancillary Products	7,776	-	7,776	1,137
Sub-total	90,295	1,117	91,412	9,799

Elimination/Unallocated costs	-	(1,117)	(1,117)	(1,485)

Total	90,295	-	90,295	8,314

				£'000

Segmental operating result				8,314
Brand amortisation				(268)
IAS 19 pension scheme administration costs				(455)

Total operating profit from continuing operations				7,591

5. Discontinued operations

	Alumasc Precision Components	Pendock Profiles	Dyson Diecastings	Total
	£'000	£'000	£'000	£'000
Half Year to 31 December 2015

Revenue	-	-	3,465	3,465

Operating profit	-	-	167	167
Tax charge	-	-	(35)	(35)

Profit after taxation	-	-	132	132

	Alumasc Precision Components	Pendock Profiles	Dyson Diecastings	Total
	£'000	£'000	£'000	£'000
Half Year to 31 December 2014 (re-stated)

Revenue	10,269	785	3,816	14,870

Operating (loss)/profit	(1,117)	55	338	(724)
Gain on disposal of discontinued operation	-	770	-	770
Tax credit/(charge)	246	(12)	(74)	160

(Loss)/profit after taxation	(871)	813	264	206

	Alumasc Precision Components	Pendock Profiles	Dyson Diecastings	Total
	£'000	£'000	£'000	£'000
Full Year to 30 June 2015 (re-stated)

Revenue	16,672	785	7,787	25,244

Operating (loss)/profit	(1,659)	55	708	(896)
(Loss)/gain on disposal of discontinued operations	(1,340)	770	-	(570)
Tax credit/(charge)	1,205	(12)	(156)	1,037

(Loss)/profit after taxation	(1,794)	813	552	(429)

6. Net finance costs

		Half year to	Half year to	Year to
		31 December	31 December	30 June
		2015	2014	2015
		£'000	£'000	£'000

Finance income - Bank interest		-	(2)	(5)
Finance costs - Bank loans and overdrafts		14	24	85
- Revolving credit facility		110	240	512
		124	264	597
	- IAS19 net pension scheme finance costs	349	400	711
		473	664	1,308

7. Reported to underlying profit reconciliation

	Half year to 31 December 2015	Half year to 31 December 2014 (re-stated)	Year to 30 June 2015 (re-stated)
	£'000	£'000	£'000


Reported profit before tax	3,242	2,905	6,288

Add: Brand amortisation	134	134	268
Add: IAS19 pension scheme administration costs	278	270	455
Add: IAS19 net pension scheme finance costs	349	400	711

Underlying profit before tax	4,003	3,709	7,722

8. Tax expense

	Half year to 31 December 2015	Half year to 31 December 2014	Year to 30 June 2015
		(re-stated)	(re-stated)
	£'000	£'000	£'000

Current tax:
UK corporation tax - continuing operations	545	553	922
- discontinued operations	(4)	(104)	(81)
Overseas tax	4	2	11
Amounts under provided in previous years	-	-	39
Total current tax	545	451	891

Deferred tax:
Origination and reversal of temporary differences:
- continuing operations	150	189	543
- discontinued operations	39	(56)	(956)
Amounts over provided in previous years	-	-	(56)
Rate change adjustment	(36)	-	24
Total deferred tax	153	133	(445)


Total tax expense	698	584	446

Tax charge on continuing operations	663	744	1,483
Tax charge/(credit) on discontinued operations	35	(160)	(1,037)
Total tax expense	698	584	446

Tax recognised in other comprehensive income:
Deferred tax:
Actuarial gains/(losses) on pension schemes	517	(815)	(945)
Cash flow hedges	35	5	(43)
Tax charged/(credited) to other comprehensive income	552	(810)	(988)

Total tax charge/(credit) in the statement of comprehensive income	1,250	(226)	(542)

9. Dividends

The directors have approved an interim dividend per share of 2.7p (2014: 2.5p) which will be paid on 7 April 2016 to shareholders on the register at the close of business on 4 March 2016. The cash cost of the dividend is expected to be £1.0 million. In accordance with IFRS accounting requirements, as the dividend was approved after the balance sheet date, it has not been accrued in the interim consolidated financial statements. A final dividend per share of 3.5p in respect of the 2014/15 financial year was paid at a cash cost of £1.2 million during the six months to 31 December 2015.

10. Share Based Payments

During the period, the group awarded 180,000 options (2014: none) under the Executive Share Option Scheme ("ESOS"). These options have an exercise price of 188p and require certain criteria to be fulfilled before vesting. 80,000 existing options (2014: none) were exercised during the period and no ESOS options (2014: 164,000) lapsed during the period.

Total awards granted under the group's Long Term Incentive Plans ("LTIP") amounted to 194,413 (2014: nil). LTIP awards have no exercise price but are dependent on certain vesting criteria being met. During the period no existing LTIP awards lapsed (2014: 259,328).

11. Earnings per share

Basic earnings per share is calculated by dividing the net profit for the period attributable to ordinary equity shareholders of the parent by the weighted average number of ordinary shares in issue during the period.

Diluted earnings per share is calculated by dividing the net profit attributable to ordinary equity shareholders of the parent by the weighted average number of ordinary shares in issue during the period, after allowing for the exercise of outstanding share options. The following sets out the income and share data used in the basic and diluted earnings per share calculations:

	Half year to 31 December 2015	Half year to 31 December 2014 (re-stated)	Year to 30 June 2015 (re-stated)
	£'000	£'000	£'000

Profit attributable to equity holders of the parent - continuing	2,579	2,161	4,805
Profit/(loss) attributable to equity holders of the parent - discontinued	132	206	(429)
Net profit attributable to equity holders of the parent	2,711	2,367	4,376

	Half year to 31 December 2015	Half year to 31 December 2014	Year to 30 June 2015
	000s	000s	000s

Basic weighted average number of shares	35,646	35,648	35,648
Dilutive potential ordinary shares - employee share options	903	546	567
Diluted weighted average number of shares	36,549	36,194	36,215

Calculation of underlying earnings per share:

	Half year to 31 December 2015	Half year to 31 December 2014 (re-stated)	Year to 30 June 2015 (re-stated)
	£'000	£'000	£'000

Reported profit before taxation from continuing operations	3,242	2,905	6,288
Add: brand amortisation	134	134	268
Add: IAS19 pension scheme administration costs	278	270	455
Add: IAS19 net pension scheme finance costs	349	400	711

Underlying profit before taxation	4,003	3,709	7,722
Tax at underlying group rate of 21.0% (2014: 22%; 2014/15: 22%)	(841)	(816)	(1,699)
Underlying earnings	3,162	2,893	6,023

Underlying earnings per share	8.9p	8.1p	16.9p

12. Related party disclosure

The group has a related party relationship with its directors and with its UK pension schemes. There has been no material change in the nature of the related party transactions described in the Report and Accounts 2015. Related party information is disclosed in note 31 of that document.

Responsibility Statement

The Directors confirm that, to the best of their knowledge:

a) the condensed consolidated interim financial statements have been prepared in accordance with IAS34 "Interim Financial Reporting" as adopted by the EU; and

b) the interim management report includes a fair review of the information required by:

· DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

· DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the group during that period; and any changes in the related party transactions described in the last annual report that could do so.

On behalf of the Board