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Alumasc Group Plc (ALU)

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Friday 20 October, 2000

Alumasc Group Plc

AGM Statement

Alumasc Group PLC
20 October 2000

                            THE ALUMASC GROUP PLC

                                AGM Statement

At today's Annual General Meeting of Alumasc, the premium engineering and
building products group, John McCall, Chairman and Chief Executive, made the
following comments:

'As previously reported, the last financial year ended strongly providing
encouragement for further progress in the current year. However, reference was
also made to the negative but unquantifiable short term effect of the changes
taking place at Rover, one of our major customers. In addition, recent
developments in the UK brewing sector and a slower start in our Building
Products Division lead the Board to anticipate significantly lower profits in
the first half of this financial year compared with last year, for which
interim pre-tax profits of £5.1 million were reported.

The main features of trading are:

*      Precision Components

        The loss of business with the Rover Group while the Longbridge
        assembly plant has been closed for restructuring has had a severe
        impact, including the closure of an Alumasc satellite manufacturing
        operation, and will disproportionately influence first half trading.
        The Division's plan to replace this work with new work for new
        customers, such as components for use in electronics and
        telecommunications applications, has been successful and the Board
        expects to return the business to its underlying growth trend in the
        second half year. The prospects for growing Alumasc Precision
        Components from its present base remain very positive.

        *      Industrial Products

             The Group's activities with the UK brewing industry have been
        severely curtailed in the period following the acquisition of the
        brewing interests of Bass and Whitbread by Interbrew S.A. and the
        uncertainties associated with the subsequent reference to the OFT. The
        extent to which this results in a temporary or permanent cutback is
        uncertain at this time. The normal seasonality of this business makes
        the impact biased towards the first half of Alumasc's financial year.

        *      Building Products

             The high level of building activity during the early summer
        months has declined nationally in the most recent quarter, with public
        projects in particular slipping against their schedules. The Board
        sees this weakness in the market as a normal fluctuation within the
        building cycle and not an indicator of prospects for the rest of the
        financial year. Given improving export expectations from the low level
        of recent years and the rising level of Alumasc product specifications
        in recent months, the Division's performance is expected to recover to
        previous levels in the second half year.

Although trading in the Group's Industrial Products Division is expected to
remain challenging, the prospects for the Precision Components and Building
Products Divisions remain positive, and present indications are for a strong
performance in the second half of the financial year as the Group builds on
the new business initiatives and the benefits of previous rationalisation.

Since the Preliminary Announcement in September, Alumasc has purchased for
cancellation a total of 230,000 shares (0.6%), and the Board intends to
continue to pursue its active policy on share buy-backs.'


The Alumasc Group plc     01536 383844

John McCall (Chairman and Chief Executive)

Bankside Consultants Limited     020 7220 7477

Charles Ponsonby

a d v e r t i s e m e n t