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Alumasc Group Plc (ALU)

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Tuesday 05 September, 2000

Alumasc Group Plc

Final Results

Alumasc Group PLC
5 September 2000



                       THE ALUMASC GROUP PLC
 PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 30 JUNE 2000

*    Alumasc, the premium engineering and building products group,
     reports  an  increase in profits for its refocused  business,
     with  strong  profit  growth  in  precision  engineering  and
     building products.

*    Pre-tax  profits from continuing activities rose  by  12  per
     cent  to  £10.1 million (1999: £9.0 million).   Earnings  per
     share were 10 per cent higher at 18.6p (1999: 16.9p).

*    Turnover  from continuing activities was 6 per cent ahead  at
     £127.6  million (1999: £120.2 million) with operating profits
     10 per cent higher at £10.2 million (1999: £9.3 million).

*    The Directors are recommending an unchanged final dividend of
     6.05p  per share, making an unchanged 8.5p per share for  the
     full year, payable on 30 October 2000 to shareholders on  the
     register at the close of business on 22 September 2000.

*    Five   businesses  were  disposed  of  during  the  year   in
     accordance  with  the  restructuring programme  commenced  in
     1999.

*    A profit before tax of £0.5 million was earned in relation to
     these discontinued activities.

*    Cash  generated by the business of £1.2 million was augmented
     by  cash  from disposals of £4.6 million to give a  net  cash
     balance of £4.8 million at the year end.

*    The Board intends to pursue a more active policy on share buy-
     backs.

*    John McCall, Chairman, comments in his statement:

  'The successful reorganisation of our business coupled with  its
  strengthening  performance  and a  responsible  dividend  policy
  places  Alumasc  in a very strong position from which  to  build
  future growth.

  Major investment opportunities are opening up for expanding  our
  precision  engineering  business into  growth  markets  such  as
  telecommunications.  Acquisition opportunities  which  build  on
  our market strengths are also being reviewed.
  
  The  Board is confident in the prospects for new business in our
  Engineering  Division and the ability of our  building  products
  business to grow its range of premium building products.'

Enquiries:

The Alumasc Group plc                             01536-383844
  John McCall (Chairman & Chief Executive)

Bankside Consultants Limited                     020-7220 7477
  Charles Ponsonby
Chairman's Statement

Overview

The  advance in pre-tax profit from continuing operations for  the
year  ended 30 June 2000 from £9.0 million to £10.1 million  is  a
positive result for the Group's refocused business.  Strong profit
growth  in  our  restructured precision engineering  and  building
product divisions resulted from new business initiatives, reviewed
in  the  Operations section of this report, and  the  benefits  of
rationalisation.   The  performance  of  the  Group's   industrial
product activities was less satisfactory.

Operating profit from continuing activities was 10 per cent  ahead
at £10.2 million (1999 : £9.3 million), on turnover of £127.6 million, 
ahead by 6 per cent.
Pre-tax  profit from continuing activities rose by 12 per cent  to
£10.1 million while earnings per share were 10 per cent higher  at
18.6p.  A positive cash flow before financial transactions of £1.2
million  was  augmented  by the proceeds from  disposals  of  £4.6
million  to  give a net cash balance of £4.8 million at  the  year
end.

The  refocusing  of  Alumasc during the year  around  its  premium
engineering and building products activities progressed  according
to  plan.   The  financial impact of the restructuring  programme,
including disposals, was dealt with in last year's accounts and is
reviewed  in  the  Financial Review section  of  this  report.   A
further  disposal of a non-core business - Tate  Access  Floors  -
took  place at the end of June 2000, after the business  had  been
managed back to profit.

The  directors  are  recommending an unchanged final  dividend  of
6.05p  per  share, making a total of 8.5p per share for  the  year
(1999  :  8.5p),  covered  2.2 times by earnings  from  continuing
activities.

The Future
The  successful  reorganisation of our business coupled  with  its
strengthening performance and a responsible dividend policy places
the  Group  in  a very strong position from which to build  future
growth.

The Board believes that, to date, there has been no reflection  of
this progress in the price at which the Company's shares have been
traded,  frustrating its objective of achieving a  more  realistic
valuation   of  the  Company  relative  to  its  performance   and
prospects.    In  this,  we  share  the  frustration   of   fellow
shareholders and the Boards of many other smaller quoted companies
and we have reviewed the options available to Alumasc for both the
creation and the realisation of shareholder value.

The   Board  has  outlined  three  related  routes  for   building
shareholder value through business development:

    organic growth of the restructured core business;
    acquisitions which seek to leverage market strengths; and
    exploitation of the internet revolution

Fundamental to all options for the future is the managed growth of
the  Group's  business.  The Board is in process of  appointing  a
Group  Managing Director to assume the primary responsibility  for
this activity in conjunction with the re-formed managements of our
business units.

The  consistent success of our precision engineering  business  is
beginning to open up major investment opportunities for expansion,
particularly  into  growth markets such as the  telecommunications
industry.  The Board is simultaneously reviewing with its advisors
the  opportunities  which exist for acquisitions  which  build  on
Alumasc's  market strengths and the substantial changes which  are
occurring within its markets.

Leonardo  Information Services Limited - the Group's 55  per  cent
owned venture for developing the Leonardo building products search
engine - will shortly be relaunched to offer net services and  web
design to the building industry.

In  addition to reviewing the options for developing the business,
the Board has considered, with its advisors, a range of structural
issues, including its policy on buying-back its own shares.
1.25 million shares, equivalent to 3.1 per cent of issued capital,
were bought and cancelled during the past year.  The generation of
cash  from  the sale of non-core assets has augmented the  Group's
resources and the Board intends to pursue a more active policy  on
share  buy-back,  without  compromising  the  Group's  ability  to
develop and invest in its business.

Board Changes

Debbie  Howard  (age 36), a board member at Lex Service  Plc,  was
appointed a non-executive director of the Group in October 1999.

Following  the  successful  restructuring  of  Alumasc's  building
products  activities, Martin Wood is now fully  committed  to  the
development   of  Leonardo  Information  Services   Limited   and,
accordingly, resigned from the Board of Alumasc and his  executive
responsibilities on 31 August 2000.  I would like  to  express  my
thanks  to  Martin  on  behalf of the Board  for  his  significant
contribution during his five years with Alumasc.

When  appointed, the Group Managing Director will continue to work
with myself as Executive Chairman, with the support of Jon Pither,
Deputy Chairman and senior independent director.

Prospects

The  last  financial year ended strongly, providing  encouragement
for  further  progress in the current year.  In  the  short  term,
however,  the  Group  will feel the effect of the  changes  taking
place  at  Rover  and  it  is too early to  predict  the  on-going
requirements  for this major customer.  This in no way  diminishes
the  Board's confidence in the prospects for new business  in  our
engineering  division  and the ability of  our  building  products
business to grow its range of premium building products.

Financial Review

Result

Pre-tax  profits  from  the  Group's continuing  businesses  moved
forward  to  £10.1 million (1999 : £9.0 million net of exceptional
costs of £0.55 million).  The result is net of a £0.3 million loss
from  Leonardo  Information  Services  Limited,  a  building   and
construction  products internet search engine in which  the  Group
acquired a 55% interest at a cost of £0.8 million during the year.

Disposals

During  the  year  ended  30 June 2000, the  Group  continued  the
process of restructuring begun in 1999.  In total, five businesses
were  sold  during  the year and, in separate  transactions,  four
vacant   freehold properties were also sold.  Because  the  profit
impact  of  known and expected disposals was reflected as  far  as
possible  in  the  published accounts at 30 June  1999,  the  main
profit  effect of the disposals in 1999/2000 has been  an  overall
pre-tax credit to discontinued activities of £0.5 million (1999  :
loss  of  £18.3 million) arising primarily from the sale  of  Tate
Access Floors in June 2000.

Balance sheet

Shareholders'  funds  increased to £38.8  million  (1999  :  £36.6
million), as a result of the retained profit for the year, reduced
by  the  effect of the purchase of own shares, and the  impact  of
negative  goodwill of Tate Access Floors under  FRS  10,  credited
within the results of discontinued activities.

Earnings and tax

Earnings  per share from continuing activities increased to  18.6p
(1999 : 16.9p after exceptional costs) after a tax charge up  from
23.8 per cent to 27.3 per cent, in line with expectations.

Dividend

The  directors  are recommending an unchanged final  dividend  per
share  of 6.05 pence, after an unchanged interim dividend of  2.45
pence,  bringing the year's total to 8.5 pence (1999 : 8.5 pence),
covered 2.2 times by earnings from continuing activities.

Net cash and cash flow

At  30  June 2000, the Group had net cash of £4.8 million (1999  :
net  debt  of £0.7 million).  The improvement reflects  continuing
strong  cash  inflow from operating activities  of  £10.2  million
(1999 : £12.8 million) and a cash inflow from disposals, including
disposal  of  land  and buildings, of £4.6 million  (1999  :  £1.1
million),  reduced by  capital expenditure, the  purchase  of  own
shares,  tax and dividends.  In addition to the normal corporation
tax  payment  on 31 March 2000, the Group suffered a further  cash
outflow  of  £0.8  million  as the government's  new  tax  payment
arrangements came into effect from January 2000 onwards.

Within  cash inflow from operations, working capital increased  by
£3.4 million  primarily because of higher trading activity in  the
last quarter compared with 1999.

Capital expenditure

Capital expenditure during the year amounted to £4.0 million (1999
:   £7.2  million)  compared  with  depreciation  of  a  virtually
identical amount (1999 : £4.6 million).

The  capital  expenditure total was the lowest for several  years,
partly  because the discontinued businesses were amongst the  most
capital  intensive in the Group, and partly because of  delays  in
some expenditure planned for the last quarter.

Purchase of own shares

The  Group  purchased 500,000 shares for cancellation  in  October
1999  at  a  cost  of £0.55 million followed by a further  750,000
shares  in June 2000 at a cost of £0.83 million.  Shares purchased
amounted to 3.1 per cent  of the issued share capital.

Application of new accounting policies

The  principal  new accounting policy to apply  to  the  Group  in
1999/2000  has been FRS 15 - Tangible Fixed Assets - which,  inter
alia,  affects our policy on the revaluation of freehold and  long
leasehold   buildings.   The  Group  has  elected  to  adopt   the
transitional provision of the FRS, under which previous valuations
will  be  retained  and  will  be treated  as  'cost'  for  future
accounting purposes.  More details will be given in note  1(e)  to
the  accounts.   Adoption  of this policy  has  not  affected  the
results for the year.

Operations Review
                                        Continuing
                                        Activities
                                        1999/2000 1998/1999
                                        
                                        
                                        £m        £m
Engineering Products  Turnover          90.6      82.9
Division              
                      Operating Profit  6.6       6.7
                                                  
                                                  
Precision Components  Turnover          44.3      39.5
                      Operating Profit  3.7       3.2

Alumasc Precision Limited, the Group's non-ferrous diecasting  and
machining specialists, made considerable progress, benefiting from
business initiatives and investment in recent years.  As a result,
there  was  an  encouraging  level of  new  product  and  customer
introductions which conform with the company's strategy to broaden
the sectors into which its specialist services are sold.

These  results were achieved despite the major disruptions in  the
UK automotive sector which followed the receivership of Transtec -
a  significant competitor - in December 1999 and the break  up  of
the  Rover  Group,  the division's largest single  customer.   The
closure  of Rover's Longbridge assembly plant during the  transfer
of  Cowley assembly facilities will have a considerable impact  on
the level of activity in the company in the short term.

The  continuing  drive to raise standards and extend  the  service
provided by Alumasc Precision was rewarded during the year by  the
achievement  of QS 9000 at two of the company's three  sites,  and
the  prestigious VDA6 German approval.  These are essential to the
continued  development of Alumasc Precision into  alternative  and
expanding precision markets such as Telecommunications.

Crossland,   the  Group's  automotive  stampings   business,   was
successful  in  developing its first tier  customer  base  despite
intense  competition  and  the uncertainties  present  in  the  UK
automotive sector referred to above.


                                        1999/2000 1998/1999
                                       
                                        £m        £m
Industrial Products   Turnover          46.3      43.4
                      Operating Profit  2.9       3.5

The headline growth in turnover reported for the year was contrary
to  underlying  activity trends, and was principally  due  to  the
impact of rising metal prices on sales by Brock Metals.

A  G  Standard  and Alumasc Grundy are both suppliers  to  the  UK
brewing  industry  where  structural  changes  accelerated  at  an
unprecedented  rate.   The  more remarkable  events  included  the
acquisition of the brewing activities of Whitbread and  Bass,  two
of  the UK's largest brewers, by the Belgian based Interbrew,  and
such   rapid   consolidation  inevitably  affected   the   Group's
traditional activities.

A  G  Standard  made good progress introducing new  brand  support
products for the soft drinks and retailing sectors, with a  number
of further initiatives in development.

Alumasc  Grundy  again performed well in its confined  market  for
aluminium  beer  containers although  the  take-up  of  the  'Non-
Returnable'   keg   introduced  during  the  previous   year   was
disappointing.

Brock  Metal  saw  prices rise for its zinc and  aluminium  alloys
reflecting  movements  in  the primary metals.   However,  margins
remained  under  pressure,  reflecting  customer  and  competitive
conditions.  The UK secondary metals sector has suffered in recent
years  from  over capacity and Brock's strong relative performance
reflects  the  efficiency  of its operations  and  the  commercial
determination of management.

Bissell's  high  export  content is  largely  into  non-US  dollar
markets which inevitably impacted its financial performance in the
year.   The  business is re-positioning itself  to  counter  this,
focusing  on  value-adding manufacturing and  the  development  of
higher specification spring pin products.

                                        Continuing
                                        Activities
                                        1999/2000 1998/1999
                                        
                                        £m        £m
Building Products         Turnover      37.0      37.3
                          Operating     4.1       3.2
                          Profit
                                                  
                                                  
Alumasc         Exterior  Turnover      24.3      25.2
Building Products
                          Operating     2.5       1.9
                          Profit

Alumasc  Exterior  Building Products was  established  during  the
previous  year by merging the four businesses of Alumasc  Building
Products, Euroroof, MR Swisspan and Corofil Morden into  a  single
entity.   The  benefits of this merger began to show in  the  year
under  review  with  substantial  cost  savings  enabling  a  more
satisfactory profit to be achieved on a similar level of turnover.

An  element of disruption from re-structuring continued  into  the
year  from  difficulties associated with the installation  of  new
business  systems.  The short term impact on service levels  which
resulted  was corrected during the second half year  and  the  new
management team coped well with a period of major change.

New business initiatives during the year included the introduction
of  new  roofing and wall coating systems which extend  the  range
into  new  sectors of activity.  The sales and marketing functions
have also been re-organised to support the drive by AEBP to expand
its business from the strong base now established.


                                        1999/2000 1998/1999
                                                                                
                                        £m        £m
Alumasc         Interior  Turnover      5.2       4.7
Building Products
                          Operating     0.8       0.6
                          Profit

Alumasc  Interior  Building Products performed  well  due  to  the
strong  performance of the Pendock brand of casing  and  enclosure
systems.

Pendock  has been repositioned to lower its exposure to the  local
authority  market  and  raise  its  presence  in  commercial   and
institutional applications.  Turnover exceeded £5 million for  the
first  time  providing a base from which to seek  new  market  and
brand opportunities.

Tate  Access  Floors  was  sold in June 2000  and  is  treated  as
discontinued  in  the  Group's accounts.  The  product  range  was
viewed  as  outside  the  Alumasc  family  of  high  specification
building products and the opportunity to sell the business to  its
U.S.   licensor   was  of  mutual  benefit.   Alumasc   Interior's
management was successful in managing Tate back into modest profit
making the sale possible on satisfactory terms.


                                        1999/2000 1998/1999
                                        
                                        £m        £m
Alumasc    Construction Turnover        7.5       7.4
Products
                        Operating       0.8       0.7
                        Profit


Alumasc Construction Products earned a similar profit in the  year
under review on sales which moved significantly out of weak export
markets  into  the  firm  UK market.  This  was  assisted  by  the
previous  introduction by Elkington Gatic of new  linear  drainage
and  lightweight  cover products which made good progress  in  the
year.


The gradual recovery in construction activity in the Far East will
hopefully  lead  to stronger demand in those markets  for  Gatic's
high performance access covers later in the current year.


As  part  of  a parallel initiative, SCP will shortly be  sourcing
components  from  the  Far East in order to extend  its  range  of
structural support products by the most cost effective route.
                                 
               CONSOLIDATED PROFIT AND LOSS ACCOUNT
                  for the year ended 30 June 2000
                                 
                               2000                     1999
                      Contin  Discont         Contin  Discont          
                        uing    inued           uing    inued
                      activi  activit  Total  activi  activit   Total
                        ties      ies           ties      ies
                      £000     £000     £000   £000     £000      £000
Turnover            127,638   8,402    136,040 120,157  27,140   147,297
                     
Cost of sales        94,722   6,578    101,300 88,759   31,406   120,165
                                       
                     ------   -------  ------ ------  -------  -------
                     
Gross profit/(loss)  32,916   1,824    34,740 31,398   (4,266)  27,132
Selling and          9,474    785      10,259 9,506     2,363    11,869
distribution costs
Administrative       13,221   986      14,207 12,578    4,990    17,568
expenses
                     ------   -------  ------ ------  -------  -------
                     
Operating            10,221   53       10,274 9,314   (11,6190  (2,305)
profit/(loss)                                      
                                                               
Share of operating                                             
profit in associates    111      -        111    100     -         100
Profit/(loss) on                                               
sale of business        -      426        426    -     (6,659)  (6,659)
activities
Interest receivable    58       -        58      697     -         697
Interest payable     (329)      -      (329)  (1,150)    -      (1,150)
                                              
                     ------   -------  ------ ------  -------  -------
                     
Profit/(loss) on                                               
ordinary activities  10,061   479      10,540 8,961   (18,278)  (9,317)
before taxation                                       
                                                               
Taxation              2,746   211       2,957 2,132    (1,490)     642
charge/(credit)
                     ------   -------  ------ ------  -------  -------
                     
Profit/(loss) on                                               
ordinary activities  7,315    268      7,583  6,829   (16,788)  (9,959)
after taxation                                        
                                                               
Equity minority        145      -        145    (21)    -          (21)
interest
                     ------   -------  ------ ------  -------  -------
                      
Profit/(loss) for                                              
the financial year                                             
attributable to the                                            
members of the       7,460    268      7,728  6,808   (16,7880  (9,980)
parent company                                        
Dividends            3,323    -        3,323  3,429     -        3,429
                     ------   -------  ------ ------  -------  -------
                  
Retained                                                       
profit/(loss) for    4,137    268      4,405  3,379   (16,788)  (13,409)
the financial year   =====    =====    =====  =====   =====    =====

Earnings  per share                                            
and diluted earnings                                           
per share - see note 18.6p    0.7p     19.3p  16.9p   (41.6p)  (24.7p)
1                                                              
                     =====    =====    =====  =====   =====    =====
Included  in  the operating profit/(loss) for continuing activities  is
£nil  (1999:  £552,000) and for discontinued activities is £nil  (1999:
£10,001,000) of exceptional costs.

Included  in continuing activities for the year is turnover of  £33,000
and  operating  losses  of  £330,000 relating  to  the  acquisition  of
Leonardo Information Services Limited.

Statement of Total Recognised Gains and Losses
There are no recognised gains or losses in the year ended 30 June  2000
other  than the profits attributable to shareholders of the Company  of
£7,728,000 (1999: loss £9,980,000).


                    CONSOLIDATED BALANCE SHEET
                          at 30 June 2000

                                                  2000        1999
                                                  £000        £000
                                                                  
Fixed assets                                                      
Intangible assets                                  356          88
Tangible assets                                 28,490      32,204
Investments                                        451         859
                                             ---------   ---------
                                                29,297      33,151
                                                 =====       =====
                                                                  
Current assets                                                    
Stocks                                          11,744      12,662
Debtors                                         28,821      28,755
Cash at bank and in hand                         5,623         521
                                             ---------   ---------
                                                46,188      41,938
                                                 =====       =====
                                                                  
Creditors: amounts falling due within one                         
year
Trade and other creditors                       28,435      30,893
Taxation                                         1,899       1,496
Proposed dividend                                2,358       2,440
                                             ---------   ---------
                                                32,692      34,829
                                             ---------   ---------
Net current assets                              13,496       7,109
                                             ---------   ---------
                                                                  
Total assets less current liabilities           42,793      40,260
                                                                  
Creditors:  amounts falling due after more       3,525       3,349
than one year
Provisions for liabilities and charges             228         282
Equity minority interest                           224          35
                                             ---------   ---------
Net assets                                      38,816      36,594
                                                 =====       =====
                                                                  
Capital and reserves                                              
Called up share capital                          4,889       5,043
Share premium                                   26,907      26,891
Revaluation reserve                              2,271       2,374
Capital redemption reserve                         156           -
Profit and loss account                          4,593       2,286
                                             ---------   ---------
Equity shareholders' funds                      38,816      36,594
                                                 =====       =====

                 CONSOLIDATED CASH FLOW STATEMENT
                          at 30 June 2000

                                              2000       1999
                                              £000       £000
                                                         
Net cash inflow from operating activities     10,213     12,794
                                              ---------  ---------
Returns on investments and servicing of                  
finance
Interest received                             58         697
Interest paid                                 (328)      (1,129)
Interest element of finance lease payments    (1)        (21)
                                              ---------  ---------
Net cash outflow from returns on investments             
and servicing of finance                      (271)      (453)
                                              ---------  ---------
Taxation                                                 
UK corporation tax paid                       (1,951)    (2,450)
                                              ---------  ---------
                                                         
Capital expenditure and financial investment             
Purchase of tangible fixed assets             (3,919)    (7,152)
Proceeds from sale of tangible fixed assets   149        1,224
Proceeds from sale of investments             441        -
                                              ---------  ---------
                                              (3,329)    (5,928)
                                              ---------  ---------
                                              
Acquisitions and disposals                               
Proceeds from sale of business activities     4,604      1,056
Purchase of subsidiary undertaking            (802)      -
Net cash acquired with subsidiary             750        -
undertaking
Purchase of investments                       -          (205)
                                              ---------  ---------
                                              4,552      851
                                              ---------  ---------
Equity dividends paid                         (3,405)    (3,428)
                                              ---------  ---------
Cash inflow before use of liquid resources    5,809      1,386
and financing
                                              ---------  ---------
Financing                                                
Issue of ordinary share capital               18         18
Repurchase of ordinary share capital          (562)      -
Repayment of amounts borrowed                 (125)      (3,342)
Capital element of finance lease payments     (38)       (404)
                                              --------   -------
                                              (707)      (3,728)
                                              --------   ---------
Increase/(decrease) in cash in the year       5,102      (2,342)
                                              =====      =====

                               NOTES
                                 
                                                         
1  Earnings per share                                    
   Both the earnings per share and the diluted earnings per share are
based  on  the profit for the financial year of £7,728,000  (1999:
loss  £9,980,000) and on the weighted average number  of  ordinary
shares  in  issue during the year ended 30 June 2000 of 40,008,259
(1999: 40,325,477).
                                                            
2  Audited accounts                                         
   The  above  financial  information does not  constitute  statutory
accounts  as  defined in Section 240 of  the Companies  Act  1985.
The  comparative financial information is based on  the  statutory
accounts  for  the  financial year  ended  30  June  1999.   These
accounts,  upon which the auditors issued an unqualified  opinion,
have been delivered to the Register of Companies.

    Statutory  accounts for the year ended 30 June  2000  will  be
delivered to the Registrar.

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