Information  X 
Enter a valid email address

Alumasc Group Plc (ALU)

  Print          Annual reports

Monday 15 August, 2005

Alumasc Group Plc

Copal Sale Discussions

Alumasc Group PLC
15 August 2005

                             THE ALUMASC GROUP PLC

                             Copal Sale Discussions

Alumasc, the high specification building and engineering products company,
announces that Alumasc Precision Limited (APL), its engineering subsidiary, is
in discussions which could lead to the sale of Copal Casting, one of APL's three

In its Interim Statement dated 10 February 2005, Alumasc announced that, due to
continuing weakness in demand from automotive customers, it was undertaking a
review of capacity in APL, which contributed 32% to the group's operating
profits in the year to 30 June 2004. At the same time, a 90 day consultation
began with the workforce at Copal.

Subsequent events at Rover, a major customer of APL, and in particular of Copal,
made this review even more essential than at the time of its announcement.

In the light of this review, and in particular the loss of Rover's business, the
Board has concluded that Copal, which has been operating at a loss for several
years, is no longer viable in its present form. Discussions are taking place
with a number of parties who have expressed an interest in the Copal business
and a further consultation is taking place with the workforce.

While a sale of the business is likely to be at a discount to Copal's net assets
(£3.6m at 30 June 2004), the ongoing business would benefit from the elimination
of the operating loss.

Higher profits from its Building Products Division should enable Alumasc to
achieve underlying profits for the year to 30 June 2005, excluding Copal, in
line with market expectations for the group prior to Rover's demise. Alumasc
expects to announce its results early in September.

The Alumasc Group plc                                             01536-383 844
Paul Hooper (Chief Executive)
David Sowerby (Finance Director)

Bankside Consultants Limited
Charles Ponsonby                                                  020-7367 8851

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

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