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Alumasc Group Plc (ALU)

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Monday 07 November, 2005

Alumasc Group Plc

Closure of Copal Casting

Alumasc Group PLC
07 November 2005

                             THE ALUMASC GROUP PLC

                            Closure of Copal Casting

Alumasc, the high specification building and engineering products company,
announces the closure of Copal, its loss-making gravity casting business, based
in Handsworth, West Midlands.

Following expressions of interest, negotiations to sell Copal have been taking
place for several months, but have failed to secure a buyer. The business, which
has incurred mounting losses since the demise of Rover in April, will commence
closure on 18 November 2005.

Alumasc's accounts for the year to 30 June 2005 included Copal's losses in the
year and a write-down of assets in anticipation of a sale of the business.
Trading losses prior to closure in the current year and redundancy costs,
estimated at
approximately £1.5 million in aggregate, will be accounted for as discontinued
activities in the half year accounts to 31 December 2005.

Withdrawal from Copal, as from Bissell earlier in 2005, is consistent with the
Group's strategy to focus its development in those core business areas of
premium building and engineering products where know-how and service are at a

Alumasc's ongoing engineering activities are in the process of replacing
business at Rover and Powertrain, the loss of which was reported to have cost
the Group
£1 million in the prior year. While the introduction of new projects and
customers outside the automotive industry is, in general, proceeding
satisfactorily, it appears unlikely to compensate fully in the short term for
the work lost, with the result that the Board now anticipates lower profits from
its ongoing engineering business in the first half of the current year (to 31
December 2005) than in the equivalent period of the prior year, with a further
increase in the Group's second half bias, highlighted in last month's AGM
Statement. Meanwhile, the Group's building products activities, which
contributed two-thirds to last year's profits, have continued to advance in the
early months of the current year.

The Alumasc Group plc                                            01536-383 844
John McCall (Chairman)
Paul Hooper (Chief Executive)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7367 8851
                                                  [email protected]

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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