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Alumasc Group Plc (ALU)

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Tuesday 09 September, 2003

Alumasc Group Plc

Final Results

Alumasc Group PLC
09 September 2003







    THE ALUMASC GROUP PLC - PRELIMINARY ANNOUNCEMENT


   •Alumasc, the specialist engineering and building products group,
    announces "a year of solid achievement against the background of major
    events internal and external to the Company", notably the decline and
    closure of the previously profitable beer barrel activity following
    permanent changes in the UK brewing industry.


   •In the year ended 30 June 2003, the continuing business grew turnover by
    6% to £117.4m, pre-tax profit by 21% to £7.8m and earnings per share by 23%
    to 15.7p, with both divisions contributing to the advance. Year end net cash
    totalled £1.5m (2002: £1.9m net debt).


   •The total profit before tax of £4.5m (2002: £7.5m) was impacted by losses
    on Discontinued Activities of £3.3m, including closure costs of £0.9m and
    the write-off of £2.4m goodwill, previously written-off to reserves.


   •A final dividend per share of 6.3p (2002: 6.05p), up 4%, is recommended,
    making a total for the year of 8.75p (2002: 8.5p), up 3%. It is proposed
    that dividend payments be rebalanced in the current year, to a more
    conventional weighting between interim and final.


   •The Engineering Products Division increased its operating profit by 36%
    to £4.0m on continuing business, on turnover up 7% at £81.3m. BMW was a
    highlight for Alumasc Precision Components, with strong sales of the Mini
    Cooper S resulting in increased component demand, whilst Alumasc Dispense
    had an outstanding year, with significant sales being made of Carlsberg,
    Kronenbourg and Heineken branded dispense products.


   •The Building Products Division increased its operating profit by 10% to
    £4.0m on turnover up 4% at £36.1m. Elkington Gatic had an excellent year,
    with the Slotdrain surface drainage system successfully widening its market
    outside of airports.


   •The strong final quarter has helped several companies, particularly in
    the Building Products Division, to enter the new financial year with healthy
    order books.


   •John McCall, Chairman, stated "On balance, we anticipate another year of
    tight market conditions in which further advances will depend largely on our
    own actions and continued attention to detail."


   •Paul Hooper, Chief Executive, added "Across both divisions, there
    continue to be opportunities to build on the significant performance
    improvements that have taken place in the last two years. Initiatives will
    include the targeting of further productivity improvements in all
    businesses. Whilst actions taken in the last year have helped to limit
    insurance cost increases for the current year, such increases are still way
    ahead of inflation. When combined with the full year effect of National
    Insurance increases and further pension cost increases, as with many other
    companies, the Group will need to work hard to offset such costs to continue
    the forward momentum. The Group will continue to invest in sales and
    marketing resources to drive the businesses forward and there is a serious
    intent to use Alumasc's strong balance sheet to speed up the expansion of
    the Building Products Division through bolt-on acquisitions."


Presentation:


A presentation will be held from 9.30 a.m. to 10.30 a.m. today at the offices of
Williams de Broe, 6 Broadgate, London EC2.


Enquiries:

The The Alumasc Group plc                                         01536-383844

John McCall (Chairman)
Paul Hooper (Chief Executive)

Bank Bankside Consultants Limited

Charles Ponsonby                                                 020-7444 4166

CHAIRMAN'S STATEMENT


SUMMARY


2003 was a year of solid achievement for Alumasc, against the background of
major events internal and external to the company.


Our continuing activities grew turnover by 6.2%, following similar advances in
the previous year. Profit before tax and earnings per share were ahead on a
similar basis, by 21% and 23% respectively, and exceeded those for the Group as
a whole in the previous year. These results were achieved despite absorbing
sharply higher pension and insurance costs, and the closure of the beer barrel
activity which was for so many years a major contributor to Group profits. Both
our engineering and building products divisions contributed to this advance.


There was further strengthening of the Group's balance sheet, underwriting our
ability to pursue opportunities for development, with positive cash balances
reported at the year end.


DIVIDEND


This performance has led your directors to recommend an increase in the final
dividend per share of 0.25p to 6.3p (2002: 6.05p), an increase of 4%, making a
total of 8.75p for the year (2002: 8.5p), an increase of 3%. In the Board's
view, this will result in an excessive weighting in favour of the final dividend
payment. Accordingly, it is the Board's intention to rebalance the dividend
payments less heavily towards the final payment, commencing with the next
interim payment. Further details will be announced at the time of the next
interim results.


STRATEGY


The present business environment of low inflation and lower economic growth
presents challenges to well-established businesses such as ours. Our strategy
for continuing the advances of recent years is to take advantage of our strong
market positions through increased sales activity and product development. The
Group has the resources with which to pursue product innovation and acquisitions
in pursuit of this strategy.


BOARD


As announced in our interim report, Paul Hooper, who joined Alumasc in April
2001 as Group Managing Director, was appointed Chief Executive on 1 March 2003.


Bill Bailie, an executive director of Alumasc since May 1989 with responsibility
for a number of the Group's operations including its brewery related activities,
retired on 31 August 2003 and I thank him on your behalf for his contribution to
the company over the past 14 years.



PROSPECTS


The consensus forecast for manufacturing in the UK remains at best flat for the
remainder of 2003. The stronger euro - some 10 per cent higher against sterling
at the end of the last financial year compared with the start - could help to
boost demand, but probably not before 2004.


In the construction market, the outlook for house-building is uncertain with
underlying demand somewhat tempered by the surge in house prices. Public
spending, in contrast, is growing strongly.


On balance, we anticipate another year of tight market conditions in which
further advances will depend largely on our own actions and continued attention
to detail.


J S McCall

Chairman      9 September 2003

CHIEF EXECUTIVE'S REVIEW


I am very pleased to report a further improvement in the Group's operations
during the year. Both Engineering Products and Building Products improved upon
the performance of continuing activities against the prior year. This resulted
in an operating profit of £7.7 million, an increase of £0.9 million (14%), from
continuing activities on turnover of £117.4 million (2002 : £110.5 million).


The 6.2% sales increase for the Group's continuing activities contributed to the
improved result. Both divisions' sales went ahead. At the same time costs in
several areas were reduced. For example, year end headcount, on continuing
activities, was 7% lower than at the prior year end and, when combined with
other cost reduction measures, helped to offset some of the £1.0 million
increased costs in insurance, National Insurance and pensions. The total gross
margin improved by 0.3%.


An improvement in the utilisation of assets coupled with tight control on
capital investment led to reduced expenditure in the year. A focus on working
capital helped to reduce stocks, although the overall working capital moved
ahead of the prior year due to the strong final quarter sales which lifted the
debtor figures. The cash performance was helped by a £1.0 million land sale. The
Group finished the year with net cash of £1.5 million versus £1.9 million net
borrowings in the prior year.


The strong final quarter of the year has helped several companies, particularly
in the Building Products Division, to enter the new financial year with healthy
order books.


During the year, the Group closed Alumasc Grundy, the beer barrel manufacturing
and repair operation, following a downturn in business which resulted from
permanent changes in the UK brewing industry. The costs of £0.9 million for this
closure, excluding goodwill, accounted for under discontinued activities, are in
line with the estimate given in the December 2002 announcement. The operation's
10 acre site in Burton-upon-Trent is being marketed. Leonardo Internet, the 70%
owned web design company, also formed part of discontinued activities. Its sale
was in keeping with the Group's focus on premium engineering and building
products.


ENGINEERING PRODUCTS


The Engineering Products Division (continuing activities) increased its profit
by
£1.0 million (36%) to £4.0 million on sales of £81.3 million, £5.6 million (7%)
ahead of the prior year.


Alumasc Precision Components


Despite a £0.5 million sales reduction to £37.4 million, associated primarily
with a softening in demand from the more established automotive customer
accounts, operating profit of £1.7 million grew slightly against the prior year.


Within the automotive area, BMW has been a highlight with strong sales of the
Mini Cooper S resulting in increased component demand.


Several new projects commenced outside the automotive area, including the supply
of cast and machined components to Caterpillar in North America and Continental
Europe. As with many project start-ups, there were initial cost overruns.
However, costs fell into line by the year end. Additional business with Philips
and Orangebox, the manufacturer of office chairs, added to development outside
the automotive area. Filtronic raised its demand for the high specification
components supplied by the Precision Component businesses. These businesses
slimmed down their employee numbers as a result of improved layouts, efficiency
initiatives and changed sales profiles.


Copal went through a restructuring which substantially improved its performance
versus the prior year despite the effect of some demand softening. This helped
to offset some of the costs associated with new project start-ups across the
division.


Dyson did well to increase its sales whilst simultaneously reducing its overhead
costs.


It is pleasing to report that both Alumasc Precision Components and Dyson
achieved the ISO 14001 environmental accreditation during the year. Copal is in
the process of applying for this accreditation.


The Precision Component businesses will continue to develop into non-automotive
markets and, as an example of this, the German diesel engine manufacturer,
Deutz, promises to become quite a significant new customer in the next financial
year.


Industrial Products


The ongoing industrial products companies increased their profit by £1.0 million
(87%) to £2.3 million on sales which increased by £6.1 million (16%) to £43.9
million.


Alumasc Dispense had an outstanding year, with significant sales being made of
Carlsberg, Kronenbourg and Heineken branded dispense products, in particular.
The Tap business also grew and decorated glass had a record year.


Brock Metals maintained a good performance. Sales tonnages of both aluminium and
zinc grew. However, margins were tighter than the prior year. There was some
benefit from the sale of a better mix of high grade aluminium alloys and the
reduction in alloy capacity following the closure of competitors. Export sales
were also developed.


Bissell continued to restructure its business and improved its performance,
despite a difficult economic background, particularly in Continental Europe.



BUILDING PRODUCTS


The Building Products Division increased its profit by £0.4 million (10%) to
£4.0 million on sales which were £1.3 million (4%) ahead of the prior year at
£36.1 million.


Alumasc Exterior Building Products


Alumasc Exterior Building Products grew its sales whilst simultaneously
achieving productivity improvements, in part due to investment in new production
equipment. In particular, the company was successful in growing its Alumasc and
Harmer Rainwater and Drainage sales along with its MR social housing walling
range. Sales in the final quarter were particularly good and a highlight during
that period was the strength of the Roofing Product orders and sales.


The company will continue to build on its customer service improvements. It
enters the next financial year with a healthy order book and there are some
signs that the Government funded improvements in social housing will accelerate,
to the likely benefit of MR walling sales.


Alumasc Interior Building Products


Alumasc Interior Building Products fell short of its record results of the prior
year. Nevertheless, its performance was still satisfactory. Sales were affected
principally by the non-repetition of major radiator guard projects in the
previous year. Elsewhere, an expanded range of Pendock-brand column casings,
launched during the year, became established. A 'state of the art' website to
assist designers continued to support this company.


Next year will encompass some quite ambitious new product launch plans backed by
creative marketing campaigns which will further develop the established Pendock
range.


Alumasc Construction Products


Elkington Gatic had an outstanding year. Its strategic plans became a reality in
which, for instance, the Gatic Slotdrain surface water drainage system
successfully widened its market outside of airports. Assisted by good
productivity and a re-engineered product, the future looks promising for this
range. Several national supermarkets and a major oil company are either
specifying or evaluating Gatic Slotdrain for supermarket car parks and petrol
station forecourts. Export sales of Gatic airport products more than offset some
UK weakness. Significant contracts were won in the Bahamas, Bangkok and
Singapore. Overall, the business moved ahead strongly, driven by improved sales
and good manufacturing efficiency improvements.


Elkington China, despite a depressed Hong Kong economy and the impact of SARS,
grew its sales and reduced costs. Sales continued for Hong Kong's Terminal 9
Container Project. In the circumstances, this company's result was commendable.


Scaffold and Construction Products had a very busy year which included a
relocation of its operation and its reinvention as a sourcing and marketing
company. During such a potentially disruptive period, it significantly grew its
sales and reduced its cost base, resulting in an excellent performance.


PROSPECTS


Across both divisions, there continue to be opportunities to build on the
significant performance improvements that have taken place in the last two
years. Initiatives will include the targeting of further productivity
improvements in all businesses. The Group will continue to invest in sales and
marketing resources to drive the businesses forward. Whilst actions taken in the
last year have helped to limit insurance cost increases for the current year,
such increases are still way ahead of inflation. When combined with the full
year effect of National Insurance and further pension cost increases, as with
many other companies, the Group will need to work hard to offset such costs to
continue the forward momentum.


The Group has increased its profit and controlled its cash well, resulting in a
positive net cash position at the year end. There is a serious intent to use
such funds to speed up the expansion of the Building Products Division through
bolt-on acquisitions. To date, the Group has looked at several opportunities.
However, these have been owned by vendors with unrealistic price aspirations.
The search will continue into the next year to make acquisitions to benefit from
the operational gearing that should accrue from the Group's established brand,
marketing and technical support strengths, along with its well established
distribution channels.


The future is challenging and exciting. The Group remains in a strong position
to move further forward.









G P Hooper

Chief Executive      9 September 2003


                                FINANCIAL REVIEW


RESULTS


Profits before tax on continuing activities rose by £1.4 million to £7.8 million
(2002: £6.4 million) on turnover up by £6.9 million to £117.4 million (2002:
£110.5 million). The profit increase includes a £0.3 million profit on a
property sale. The total result of £4.5 million (2002: £7.5 million) is net of a
£3.3 million loss on discontinued activities which includes the write-off
through the profit and loss account under FRS 2 of £2.4 million of goodwill
already written-off to reserves when the related business was acquired in the
1980s. The satisfactory increase in profits from continuing activities reflects
a further 0.3% improvement in gross margin, and has been achieved despite
significant increases in insurance, pension and National Insurance charges
amounting to £1.0 million.


EARNINGS, TAX AND DIVIDEND


Earnings per share on continuing activities were 15.7p (2002: 12.8p), although
overall earnings per share fell 8.0p to 6.9p because of the impact of
discontinued activities including the goodwill write off.


The effective tax rate on continuing activities was 29.6% (2002: 30.1%). This
has benefited from a tax refund and the release of provisions relating to
earlier years.


In the light of the result, the directors propose an increase in the final
dividend to 6.3p per share (2002: 6.05p), payable on 31 October 2003 to
shareholders on the register as at 10 October 2003. This will make a total
dividend for the year of 8.75p per share (2002: 8.5p) covered 1.8 times by
profits from continuing activities.


SHAREHOLDERS' FUNDS


Shareholders' funds increased to £36.2 million (2002: £34.5 million).


CASH


The Group remains firmly cash generative; net cash at the year end was £1.5
million compared with net borrowings of £1.9 million last year. Cash flow
benefited from the sale of a property for £1.0 million and a prudent scale back
in capital investment to £2.2 million (2002: £6.3 million), £1.7 million below
depreciation. Interest costs fell to £0.3 million (2002: £0.5 million) on the
positive cash flow and reducing interest rates.


PENSIONS


Following an increase in the actuarial deficit on one of the Group's final
salary schemes to £4.9 million, which was reported last year, the 2002 actuarial
report on the Group's other final salary scheme showed that it also had moved to
a £4.4 million deficit at 1 April 2002. These deficits required an increase of
£0.5 million to be made in the SSAP 24 pension charge for the year. Movements in
equity and bond prices since the actuarial valuations have resulted in a further
decrease in the scheme's assets and decreases in bond yields have resulted in
further increases in the actuarial computation of the schemes' liabilities. The
result is an increase in the overall deficits as at 30 June 2003 compared with
the earlier actuarial valuations. The accounts show the schemes' deficits based
on the FRS 17 conventions.


In the analysis of segmental results in Note 1, the cost of funding the deficits
is reported separately to avoid distorting the results of commercial operations,
since the bulk of the deficits relate to the 86% of scheme members who are not
current employees.


SUMMARY


With nil gearing, healthy year end order books and growing profits, the Group is
in a strong position to make acquisitions, fund organic growth and take
advantage of other opportunities for future expansion.





D R Sowerby

Group Finance Director        9 September 2003





                     CONSOLIDATED PROFIT AND LOSS ACCOUNT

                        for the year ended 30 June 2003

                                                            2003                                     2002
                                -------         -------    -------       -------         -------    -------

                Notes      Continuing    Discontinued      Total    Continuing    Discontinued      Total
                -----      activities      activities               activities      activities

                                 £000            £000       £000          £000            £000       £000
Turnover              1       117,425           2,499    119,924       110,530           7,117    117,647
Cost of sales                  88,555           2,086     90,641        83,709           5,101     88,810
---------------   -------       -------         -------    -------       -------         -------    -------
Gross profit                   28,870             413     29,283        26,821           2,016     28,837

Selling and                     
distribution
costs                           9,199              72      9,271         8,599             177      8,776
Administrative                 
expenses                       11,933             392     12,325        11,418             766     12,184
---------------   -------       -------         -------    -------       -------         -------    -------
Operating             1         7,738             (51)     7,687         6,804           1,073      7,877
profit/(loss)

Share of operating profit        
in associates                      55               -         55            60               -         60
Profit on fixed                   
asset
disposals                         305               -        305             -               -          -
Sale/
termination of              
businesses:
                                                                                       
Business
closure costs/
loss on sale                        -            (875)      (875)            -               -          -
Goodwill write
off                                 -          (2,388)    (2,388)            -               -          -
                                -------         -------    -------       -------         -------    -------
                                    -          (3,263)    (3,263)            -               -          -
Interest                           
receivable                         39               -         39            48               -         48
Interest                         
payable                          (361)              -       (361)         (508)              -       (508)
---------------  -------        -------         -------    -------       -------         -------    -------
Profit/(loss)                   
on ordinary
activities
before
taxation                        7,776          (3,314)     4,462         6,404           1,073      7,477
Taxation charge                 2,302            (246)     2,056         1,931             323      2,254
/(credit)        
---------------  -------        -------         -------    -------       -------         -------    -------
Profit/(loss)
on ordinary
activities
after
taxation                        5,474          (3,068)     2,406         4,473             750      5,223
Equity minority                   
interest                          (22)              -        (22)          (24)              -        (24)
---------------  -------        -------         -------    -------       -------         -------    -------
Profit/(loss)for the
financial year attributable to
shareholders                    5,452          (3,068)     2,384         4,449             750      5,199
Dividends                       3,035               -      3,035         2,948               -      2,948
---------------  -------        -------         -------    -------       -------         -------    -------
Retained profit
/(loss) for the 
financial                       
year                            2,417          (3,068)      (651)        1,501             750      2,251
---------------  -------        -------         -------    -------       -------         -------    -------

Basic earnings       
per share            2           15.7p           (8.8)p      6.9p         12.8p            2.1p      14.9p
---------------  -------        -------         -------    -------       -------         -------    -------
Diluted              
earnings per     
share                2           15.6p           (8.8)p      6.8p         12.8p            2.1p      14.9p
---------------  -------        -------         -------    -------       -------         -------    -------





          CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                        for the year ended 30 June 2003



                                                               2003       2002
                                                         ----------  ---------
                                                               £000       £000
Profit for the financial year attributable to                 
shareholders                                                  2,384      5,199
Currency translation differences on foreign currency net         
investments                                                      (9)        (2)
                                                           ----------  ---------
Total recognised gains and losses for the year                2,375      5,197
                                                          ----------  ---------





                           CONSOLIDATED BALANCE SHEET

                                at 30 June 2003



                                                               2003       2002
                                                               £000       £000
Fixed assets
Intangible assets                                                58         66
Tangible assets                                              28,411     31,425
Investments                                                     493        468
                                                          ---------  ---------
                                                             28,962     31,959
                                                           ---------  ---------

Current assets
Stocks                                                       11,698     11,997
Debtors                                                      24,356     21,939
Cash at bank and in hand                                      4,608      2,231
                                                            ---------  ---------
                                                             40,662     36,167
                                                            ---------  ---------

Creditors: amounts falling due within one year
Trade and other creditors                                    25,608     24,572
Taxation                                                      1,202      1,410
Proposed dividend                                             2,185      2,098
-                                                            -------  ---------
                                                             28,995     28,080
                                                           ---------  ---------
Net current assets                                           11,667      8,087
                                                           ---------  ---------

Total assets less current liabilities                        40,629     40,046
Creditors: amounts falling due after more than one year       3,656      4,831
Provisions for liabilities and charges                          704        598
Equity minority interest                                         36        112
                                                          ---------  ---------
Net assets                                                   36,233     34,505
                                                          ---------  ---------

Capital and reserves
Called up share capital                                       4,352      4,352
Share premium                                                26,907     26,907
Revaluation reserve                                           1,874      2,021
Capital redemption reserve                                      693        693
Profit and loss account                                       2,407        532
                                                           ---------  ---------
Equity shareholders' funds                                   36,233     34,505
                                                          ---------  ---------


                        CONSOLIDATED CASH FLOW STATEMENT

                        for the year ended 30 June 2003



                                                             2003           2002
                                                             £000           £000
Net cash inflow from operating activities                   9,464         12,271
                                                         --------      ---------

Returns on investments and servicing of finance
Interest received                                              39             48
Interest paid                                                (147)          (432)
Interest element of lease/ hire purchase payments            (214)           (76)
Dividends paid to minority interests                          (16)             -
                                                          --------      ---------
Net cash outflow from returns on investments and
servicing of finance                                         (338)          (460)
                                                          --------      ---------

Taxation
UK corporation tax paid                                    (2,095)          (938)
                                                           --------      ---------

Capital expenditure and financial investment
Purchase of tangible fixed assets                          (2,217)        (4,487)
Proceeds from sale of tangible fixed assets                 1,520            226
                                                          --------      ---------
                                                             (697)        (4,261)
                                                          --------      ---------

Acquisitions and disposals
Deferred consideration from sale of business                  
activities                                                      -            379
Sale of subsidiary undertaking                                109              -
Net cash disposed of with subsidiary undertaking             (108)             -
                                                           --------      ---------
                                                                1            379
                                                           --------      ---------

Equity dividends paid                                      (2,948)        (2,948)
                                                           --------      ---------

Cash inflow before use of liquid resources and              
financing                                                   3,387          4,043
                                                           --------      ---------

Financing
Repayment of amounts borrowed                                (688)          (116)
Increase in medium term secured borrowings and lease/           
hire purchase financing                                         -          2,054
                                                           --------      ---------
                                                             (688)         1,938
                                                          --------      ---------

Increase in cash in the year                                2,699          5,981
                                                         --------      ---------


1.            ANALYSIS OF TURNOVER AND PROFITS BETWEEN ACTIVITIES AND MARKETS


Turnover comprises the invoice value of goods and services supplied by the Group
exclusive of VAT and intragroup transactions.


Turnover and profit/(loss) on ordinary activities before taxation attributable
to each of the classes of activity of the Group are as follows:


Segmental analysis

                                             2003                                             2002
                    --------         ------- -------            ------         -------       -------

                                             Continuing                                 Continuing
                                              activities                                activities
                  Turnover    Total profit        profit    Turnover    Total profit        profit
                      £000            £000          £000        £000            £000          £000
Engineering         
products            83,725           3,945         4,008      82,663           4,086         2,937
Building            
products            36,132           3,986         3,986      34,862           3,608         3,608
Leonardo                67              12             -         122             (76)            -
                  --------         -------       -------      ------         -------       -------
Sub total          119,924           7,943         7,994     117,647           7,618         6,545
Pension deficit (cost)/
surplus credit                        (256)         (256)                        259           259
                   --------         -------       -------      ------         -------       -------
                   119,924           7,687         7,738     117,647           7,877         6,804
                   --------         -------       -------      ------         -------       -------
Share of
operating profit
in associates                           55            55                          60            60
Profit on fixed                        
asset
disposals                              305           305                           -             -
                    Business          
                     closure
               costs/loss on
                      sale            (875)            -                           -             -
Goodwill write                      
off                                 (2,388)            -                           -             -
Net interest                          (322)         (322)                       (460)         (460)
                   --------         -------       -------      ------         -------       -------
                                     4,462         7,776                       7,477         6,404
                   --------         -------       -------      ------         -------       -------


The amounts disclosed as pension deficit (cost)/surplus credit have been shown
separately because they relate to closed schemes, 86% of whose members are not
now employed by the Group.



Geographical analysis


All business operations are located in the United Kingdom and all turnover is
generated there with the exception of Elkington China Limited, based in Hong
Kong, whose turnover is not significant.


Turnover by destination is as follows:

                                                     2003                     2002
                                           £000
                                        104,416
                                     Continuing               Continuing
                                     activities     Total      activities     Total

                                           £000       £000          £000       £000
United Kingdom                          100,377    102,876        97,308    104,416
Europe   - EU                            12,514     12,514        10,346     10,346
         - Non EU                           680        680           746        746
Other                                     3,854      3,854         2,130      2,139
----------         ----------------      --------   --------       -------   --------
                                        117,425    119,924       110,530    117,647
----------         ----------------      --------   --------       -------   --------


2.            EARNINGS PER SHARE


Both the earnings per share and the diluted earnings per share are based on the
profit after tax attributable to shareholders for the financial year of
£2,384,000 (2002: £5,199,000). Earnings per share is based on the weighted
average number of ordinary shares in issue during the year ended 30 June 2003 of
34,816,788 (2002: 34,816,788). Diluted earnings per share is based on the
weighted average number of ordinary shares in issue during the year, after
allowing for the exercise of outstanding share options, of 34,864,434 (2002:
34,852,456).





3.            AUDITED ACCOUNTS


               The above financial information is derived from the statutory
accounts for the years ended 30 June 2003 and 30 June 2002, on both of which the
auditors have issued an unqualified opinion.


               The information does not constitute statutory accounts as defined
in Section 240 of the Companies Act 1985.


               The accounts for the year ended 30 June 2002 have been filed with
the Registrar of Companies and the accounts for the year ended 30 June 2003 will
be filed in due course.


             Copies of the Annual Report and Accounts will be posted to all
shareholders on 12 September 2003. Copies will be available from the Company 
Secretary, The Alumasc Group plc, Burton Latimer, Kettering, Northamptonshire, 
NN15 5JP, and can be viewed on www.alumasc.co.uk, from 16 September 2003.






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