Information  X 
Enter a valid email address

Alumasc Group Plc (ALU)

  Print          Annual reports

Wednesday 08 September, 2004

Alumasc Group Plc

Final Results

Alumasc Group PLC
08 September 2




                THE ALUMASC GROUP PLC - PRELIMINARY ANNOUNCEMENT

Alumasc, the high specification engineering and building products group,
announces a good year, particularly in its two principal activities, precision
engineering and specification building products.

• Compared with the previous year's continuing activities:

  Pre-tax profit increased by 8.0% to £8.1m (underlying*) and by 15.1% to £8.9m
  (reported).
  Basic earnings per share advanced by 8.8% to 16.1p (underlying*) and by 18.5% 
  to 18.6p (reported).

   • Dividends per share are 6.3% higher at 9.3p.

   • Net cash increased to £3.3m from £1.5m.

   • Precision Components operating profit increased to £2.7m from £1.75m on
     turnover reduced to £36.8m from £37.4m. In what was overall an encouraging
     year, the declared strategy to develop into non-automotive markets
     progressed.

   • Industrial Products operating profit declined to £0.7m from £2.2m on
     turnover reduced to £38.0m from £43.8m. The turnover reduction was mainly
     accounted for by the severe slowdown in project activity at Alumasc
     Dispense, following last year's record performance.


   • Building Products increased its operating profit to £5.0m from £4.0m on
     turnover increased to £40.4m from £36.1m. Alumasc Exterior Building
     Products, Alumasc Interior Building Products and Alumasc Construction
     Products all enjoyed good years. Particular successes were project wins by
     Harmer engineered drainage systems, increased penetration into builders'
     merchants by Alumasc Interior Building Products, and a record year for 
     sales and profit at Elkington Gatic.

John McCall, Chairman, stated: "I spoke a year ago of our belief that the
prospects for the coming year were dependent largely on our own actions in the
light of tight market conditions. This is a fair description of the outcome, and
I hesitate from drawing a significantly different picture one year later. Upward
pressure on external costs continues, particularly in the case of energy.
However, Alumasc has made real progress in the last three years which gives
confidence in our ability to grow in those areas where we have genuine and
demonstrable skills and strengths."

* excluding profit on sale of land

Paul Hooper, Chief Executive, added: "The strong final quarter of the year gives
encouragement for the current financial year. Following the acquisitions of
Roof-Pro and Timloc since the year end, there will continue to be a focus on
using the Group's strong financial position to expand the Building Products
division through further add-on acquisitions. In addition, there are a number of
significant new projects for Alumasc Precision which will require further
investment to increase capacity."

Presentation

From 09.30 to 10.30 today, a presentation to brokers' analysts and private
client investment advisers is being held at the office of Williams de Broe, 6
Broadgate, London EC2M 2RP.

Enquiries:

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

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166


                           Chairman's Statement 2004

Overview

2004 was a good year for Alumasc, particularly in our two principal activities -
precision engineering and specification building products.

The Group's pre-tax profits of £8.9 million (2003: £7.8 million on continuing
activities) were ahead of the previous year by £1.1 million. Both years
benefited from profits on the sale of land, and the increase before such profits
was £ 0.6 million or 8.0%.

Within the overall improvement, the core precision engineering and building
products divisions grew operating profit by £1.9million, a 33% improvement on
the previous year. This excellent result was achieved by a combination of
increasing the sales of new products in both divisions, and improving the
efficiency of our manufacturing operations. Profit margins improved as a result.
Our industrial products activities performed less well, with market conditions
significantly weaker than in the previous year.

Earnings per share of 18.6p were 18.5% ahead of the previous year. Excluding the
profits from the sale of land, earnings per share of 16.1p were 8.8% ahead.

The Group's balance sheet continued to strengthen, with net cash of £3.3 million
at the year-end, up from £1.5 million a year earlier.

Dividends

In keeping with its policy to grow dividends in line with earnings, the Board is
recommending an increase in the total dividend per share for the year from 8.75p
to 9.3p, equal to 0.55p or 6.3%. Following the rebalancing between interim and
final payments which occurred during the year with an increase in the interim
dividend per share from 2.45p to 3.0p, this equates to a recommended final
dividend per share of 6.3p (2003: 6.3p).

Strategy and Development

The Board's determination to take advantage of the Group's strong market
positions through increased sales activity, product development and add-on
acquisitions bore fruit in the year with the growth in building products sales
and an increasing contribution from the sale of new products.

Since the year-end, in furtherance of this strategy, Alumasc acquired two
building products companies. Roof-Pro Limited was acquired on 31 July 2004 for
£3.0 million net of acquired cash. Roof-Pro manufactures and supplies support
systems for equipment and services located on roofs, and will fit closely
alongside the roofing products activities of Alumasc Exterior Building Products.
Timloc Building Products Limited was acquired on 6 September 2004 for £3.25
million. Timloc manufactures and supplies cavity trays, ventilation products and
loft access doors to the UK house building market. The Board views this sector
as offering significant opportunities for expansion where the familiar
characteristics of high performance, service and technical support are present.

Financing these acquisitions was well within the Group's existing financial
resources. I formally welcome Roof-Pro and Timloc to our Group.

Following the closure of the Group's beer barrel activity in Burton-Upon-Trent
during the previous year, contracts were exchanged for the sale of the 10 acre
freehold site for £2.1 million in June 2004. This gave rise to a profit in the 
year of £0.8 million, in line with expectations at the time of closure, and the 
transaction was completed on 28 July 2004.

As a result of its strong performance in the past year, assisted by the sale of
surplus land, our Group continues to have ample resources with which to pursue
its strategy of product innovation and related acquisitions.

Prospects

I spoke a year ago of our belief that the prospects for the coming year were
dependent largely on our own actions in the light of tight market conditions.
This is a fair description of the outcome and I hesitate from drawing a
significantly different picture one year later. Upward pressure on external
costs continues, particularly in the case of energy. However, Alumasc has made
real progress in the past three years, which gives us confidence in our ability
to grow in those areas where we have genuine and demonstrable skills and
strength.

J S McCall
Chairman                                                        8 September 2004

                            Chief Executive's Review

Overview

I am very pleased to report a third consecutive year of improvement in the
Group's operations during 2004. In particular, the two core activities of
Precision Components and Building Products moved their operating profit ahead
strongly. The overall result from continuing activities was an operating profit
of £8.2m, an increase of £0.5m (7%) on turnover of £115.3m (2003 : £117.4m)

Our Building Products division achieved significant organic sales increases, as
a result of increased sales and marketing activity combined with launches into
new markets. The Industrial Products companies experienced reduced sales due to
fewer countermount projects at Alumasc Dispense, and weaker markets combined
with fierce competition faced by Brock and Bissell. Whilst Alumasc Precision
moved its sales of complex components and assemblies forwards, this was offset
by reductions in the gravity casting business. The net effect of these movements
was a small reduction in the Group's turnover for the year.

Costs in several areas, especially in manufacturing, benefited from efficiency
improvements. This was particularly evident in the second half year. Across the
Group, the year-end headcount had reduced by 8% (7% in the prior year).

A keen focus on the utilisation of assets led to a tight control on capital
expenditure in the year, which came in £1.2m below the depreciation charge.
Trade working capital was well controlled. The Group finished the year with net
cash of £3.3m versus £1.5m in the prior year.

The strong final quarter of the year gives encouragement for the current
financial year.

Development

In line with the Group's stated plan to grow through both organic and
acquisition growth, two building products companies have been acquired since the
year end. Roof-Pro Limited, acquired in July 2004, manufactures and supplies
support systems for equipment and services located on roofs such as chillers,
air conditioning plant and pipelines. These systems are specified by Mechanical
and Electrical (M&E) engineers for new and refurbishment construction contracts
and provide cost-saving flexibility in roof maintenance and repair. Roof-Pro's
activities will fit closely with those of Alumasc Exterior Building Products
(AEBP). Whilst Roof-Pro may be expected to benefit from AEBP's wide contacts in
the UK construction industry, it will in turn provide AEBP with an entree into
the growing M&E sector. The purchase price was £3.0m, excluding cash acquired,
and it generated £0.7m pre-tax operating profit in the year to December 2003.

Timloc Building Products Limited was acquired in early September 2004. Timloc
manufactures and supplies a range of products to the UK house building market,
including cavity trays, roof and wall ventilation products and loft access doors
with a significant market position in each product range. Products are sold
principally to builders' merchants and distributors for use in the construction
of new houses. This acquisition increases Alumasc Building Products' activities
in the house building sector and by the builders' merchant route. The house
building sector is a relatively minor channel for Alumasc's existing activities
and the Board views it as a significant opportunity for expansion where the
familiar characteristics of high performance, service and technical support are
present. Timloc matches these criteria and should benefit in turn from Alumasc's
existing strengths in the marketing of specification building products.

The purchase price was £3.25m and Timloc generated £0.5m pre tax operating
profit in the year to December 2003.


Both acquisitions should be immediately earnings enhancing for the Group.


Prospects

The Group will continue to invest in sales and marketing resources to drive
sales forward. New products will be launched and new markets will be sought for
the Group's established products. Manufacturing efficiency gains are still a
focus and, to that end, there has been an increasing use of Six Sigma techniques
to further help measure, analyse, improve and control processes in the Precision
Components businesses. To date the Group has had some success in passing on
increased raw material costs, relevant mainly to steel and cast iron products.
Concern exists for the impact on energy costs currently emanating from high oil
prices.

Following the acquisition of Roof-Pro Limited and Timloc Building Products
Limited, after the year end, there will continue to be a focus on using the
Group's strong financial position to expand the Building Products Division
through further add-on acquisitions. In addition, there are a number of
significant new projects for Alumasc Precision which will require investment to
increase capacity.

The marketplaces in which the Group's businesses operate require management's
proactive approach to ensure that the Group's three year record of profit growth
is maintained.

Precision Components

Although sales reduced by £0.6m to £36.8m, added value, an equally important
measurement of activity levels, grew in absolute terms and in proportion to
sales. Operating profit grew by £0.9m (53%) to £2.7m.

Within the automotive area there was a softening in demand from the more
established customers. However, BMW continued as a highlight, with strong sales
of the Mini Cooper S resulting in increased component demand. Volumes also
ramped up for Saab in Sweden following a new engine launch.

Outside the automotive area, sales to Caterpillar and Garrett Thermal Systems
grew. New customers Deutz and Mercury Marine (through Garrett Thermal Systems)
were welcomed and volumes began to uplift in the second half year. These
customers match the declared strategy to develop into non-automotive markets.
The size of such customers also gives future opportunities, especially once good
supplier track records have been established. Increased business with Philips
and Orangebox, the manufacturer of office chairs, further strengthened the
non-automotive development.

Alumasc Precision grew sales and improved its manufacturing efficiencies.
Overhead recoveries were enhanced by a headcount which ended the year 13% lower
than the prior year end. Copal went through a further restructuring process
which produced a headcount 21% lower at the year end. In the final quarter of
the year, its performance was greatly improved. Dyson performed well, improving
its return on relatively flat sales.

Overall, Precision Components had an encouraging year. Further project launches
next year will build on this business's success in distinguishing itself by
focusing on complex, high added value work.


Industrial Products

The Industrial Products companies had sales of £38.0m, a reduction of £5.8m
compared to last year's continuing activities, mainly accounted for by Alumasc
Dispense. Profit reduced by £1.5m (67%) to £0.7m.

Following last year's record performance at Alumasc Dispense, there was a
general slowdown in project activity, albeit several countermount projects were
won such as ScotCo Fosters' 'Super Chilled', Carlsberg's 'Extra Cold' and
Holsten. Business development continues with many international and regional
brewers.

Brock Metal had a challenging year, with market demand being affected by a
softening in the UK demand for zinc, partly a reflection of a reduction in the
size of the UK customer base. At the same time, market prices were driven down
by competitive pressures. Export sales were developed. Aluminium profits were
negatively affected by increased prices for scrap aluminium feed, driven by
demand from China. Towards the year end, however, aluminium alloy manufacturing
capacity reduced in the UK. This should help Brock in the current financial
year.

Bissell had a difficult year, with its performance being impacted by demand
fluctuations in the UK and mainland Europe, compounded by steel cost increases
and low market sales prices.

Building Products

The Building Products Division increased its profit by £1.0m (24%) to £5.0m on
sales which were £4.3m (12%) ahead of the previous year at £40.4m.

Alumasc Exterior Building Products

Alumasc Exterior Building Products grew its sales through a further investment
in sales and marketing. All brands moved ahead of the prior year. In particular,
Harmer engineered drainage systems had a good year, driven by project wins. A
highlight was the contract award for the Coventry Walsgrave Hospital. Sales in
the final quarter were particularly good across all brands. The increased sales
were the primary driver to increase AEBP's operating profit.

Continued investment in sales and marketing, new product development and the
recently acquired Roof-Pro, should help to drive this business forwards. Further
investment in PFI projects, a new preferred supplier status for Alumasc
Rainwater, and increased MR Walling brand sales, as the refurbishment of social
housing stock gathers pace under the Government's Decent Homes initiative, will
also help.

Alumasc Interior Building Products

Alumasc Interior Building Products had a good performance in the UK resulting in
sales moving well ahead of the prior year. This was mainly driven by the success
of the penetration into builders merchants, with 81 stocking branches in place
at the year end. The roll-out into mainland Europe has, however, taken longer
than expected to become established. Continuing negotiations with several large
distribution channels could result in a greatly improved performance.

In the current year, a focus will be maintained on sales into Europe as well as
building on the success of last year's UK strategy. This will involve the
further development of UK merchants combined with the targeting of specific UK
markets. An increasing investment in sales and marketing will continue in
support of the above.

Alumasc Construction Products

Elkington Gatic had another outstanding and record year for sales and profit.
The company's access and drainage products had significant sales increases in
both established and new markets. Within the UK, there was an increased level of
airport activity for both commercial and military establishments. This was
driven by airport expansion (such as Terminal 5 at Heathrow) and maintenance
replacement work. Export sales also held up well, especially in Germany, the
United Arab Emirates and Malaysia.

The Gatic Slotdrain product continued its roll-out into supermarket car parks,
retail parks and petrol station forecourts. Recent notable successes have been
with Total and BP (at Stansted Airport). National UK stockist distribution has
been established for Gatic Slotdrain which will build on the momentum gained for
this fast growing product. Another highlight was the agreement reached with
Saint Gobain to distribute Gatic engineered access covers on the Continent.
Further manufacturing efficiencies were generated during the year, partly driven
by increased sales volumes. To complete a very successful year, Elkington Gatic
achieved the Environmental Standard ISO 14001.

Elkington China performed well in a depressed market. It remained in profit by
tailoring its cost structure to the revenues achieved. Sales continued for the
Hong Kong Terminal 9 Container Project.

Scaffold & Construction Products also had a record year, for both sales and
operating profit. SCP's fast customer response business model has been a success
and further products will be sought to market through its distribution channel.

While raw material cost increases became a factor in the second half year, ACP
has been broadly successful in passing these on. A further investment in sales
and marketing along with a planned expansion into new geographical markets
should continue the momentum into the current year.

G P Hooper
Chief Executive                                                 8 September 2



                                Financial Review

Results

Total profit before tax rose from £4.5 million in 2003 to £8.95 million in 2004.
The 2004 result includes a profit on sale of property of £0.88 million (2003:
£0.31 million), and the prior year result was net of a £3.3 million loss on
discontinued activities. Excluding these items, there was an 8% increase in
profit before tax to £8.07 million (2003: £7.47 million), on turnover down 1.8%
to £115.3 million (2003: £117.4 million). Within the result, there was a marked
improvement in gross margin, up from 24.6% to 26.1%, reflecting aggressive
action on manufacturing costs, and continued efficiency improvements in the
utilisation of plant. Administrative expenses were largely unchanged, but the
Group invested in additional marketing costs, including additional staff,
although there was a headcount reduction on year end figures of 8% in total
throughout the Group.

Earnings, tax and dividend

Earnings per share were 18.6 p (2003: 6.9p overall, 15.7p on continuing
activities).
The overall effective tax rate was 27.5 % (2003: 29.6% on continuing
activities). Excluding the effect on the tax rate of the profit on land sales,
the underlying effective rate is 30.5% (2003: 30.8% on continuing activities).

The Board is recommending a 6.3% increase in the total dividend to 9.3p (2003:
8.75p) covered 2.0 times. A year ago the Board announced its intention to pay a
higher proportion of the dividend at the interim stage. This was reflected in
the increase in the interim dividend from 2.45p to 3.0p. The directors propose a
final dividend of 6.3p (2003: 6.3p) payable on 29 October 2004 to shareholders
on the register as at 8 October 2004.

Shareholders' funds

Shareholders' funds increased to £ 39.4million (2003: £36.1 million).

Cash

The Group continues to generate cash; net cash at 30 June 2004 was £3.3 million
(2003: £1.5 million) even though £2.0 million of the proceeds from the sale of
land at Burton-Upon-Trent was received after the year end. Capital expenditure
was modestly up on prior year at £2.5 million (2003: £2.2 million) compared with
depreciation of £3.6 million (2003:
£4.0 million). Interest costs fell to £0.2 million (2003: £0.3 million).

Pensions

Following an increase in the actuarial deficits on both of the Group's final
salary schemes reported in 2002 and 2003, the Group acted to reduce the cost of
providing future pensions with effect from the last quarter of the year to 30
June 2004.

Summary

The results for 2004 show continuing advances in the Group's core activities and
increased cash generation. Taken together with its nil gearing this leaves the
Group well placed to make further acquisitions and fund its continuing growth
from a solid base.

Post balance sheet events

Since 1 July 2004 the Group has acquired two building products businesses in
pursuit of its policy of expanding by acquisition as well as organic growth in
this area. On 31 July 2004 the Group acquired Roof-Pro Limited for a cash
consideration of £3 million net of cash acquired and on 6 September 2004 the
Group acquired Timloc Building Products Limited for a cash consideration of
£3.25 million.

D R Sowerby
Group Finance Director 8 September 2004



                      CONSOLIDATED PROFIT AND LOSS ACCOUNT
                        for the year ended 30 June 2004

                                          2004                                  2003
                                         -------                    ------------------

                                                 Continuing   Discontinued
                                         Total   activities     activities     Total
                              Notes       £000         £000           £000      £000
Turnover                           1   115,312      117,425          2,499   119,924
Cost of sales                           85,209       88,555          2,086    90,641
-----------------------     --------   -------      -------        -------   -------
Gross profit                            30,103       28,870            413    29,283

Selling and
distribution costs                       9,803        9,199             72     9,271
Administrative                          12,054       11,933            392    12,325
expenses             
-----------------------     --------   -------      -------        -------   -------
Operating profit/                  1     8,246        7,738            (51)    7,687
(loss)
Share of operating
profit in associates                        50           55              -        55
Profit on fixed
asset disposals                            880          305              -       305

Sale/ termination of
businesses:                            -------      -------        -------   -------
                                                                               -------
  Business closure                           -            -           (875)     (875)
  costs                                -------      -------        -------   -------
  Goodwill write                             -            -         (2,388)   (2,388)
  off                                  -------      -------        -------   -------
                                             -            -         (3,263)   (3,263)
Interest receivable                         13           39              -        39
Interest payable                          (242)        (361)             -      (361)
-----------------------     --------   -------      -------        -------   -------
Profit/(loss) on
ordinary
activities
before taxation                          8,947        7,776         (3,314)    4,462
Taxation
charge/(credit)                          2,459        2,302           (246)    2,056
-----------------------     --------   -------      -------        -------   -------
Profit/(loss) on
ordinary
activities
after taxation                           6,488        5,474         (3,068)    2,406
Equity minority
interest                                    (7)         (22)             -       (22)
-----------------------     --------   -------      -------        -------   -------
Profit/(loss) for
the financial year
attributable to
shareholders                             6,481        5,452         (3,068)    2,384
Dividends                          2     3,225        3,035              -     3,035
-----------------------     --------   -------      -------        -------   -------
Retained profit/
(loss) for the
financial year                           3,256        2,417         (3,068)     (651)
-----------------------     --------   -------      -------        -------   -------
Basic earnings per
share                              3      18.6p        15.7p          (8.8)p     6.9p
-----------------------     --------   -------      -------        -------   -------
Diluted earnings per
share                              3      18.5p        15.6p          (8.8)p     6.8p
-----------------------     --------   -------      -------        -------   -------
Dividend per share                 2       9.3p                                 8.75p
-----------------------     --------   -------      -------        -------   -------

Consolidated Statement of Total Recognised Gains and Losses
for the year ended 30 June 2004

                                                                2004      2003
                         ---------------------------------- ---------- ---------
                                                                £000      £000
Profit for the financial year attributable to shareholders     6,481     2,384
Currency translation differences on foreign currency net
investments                                                       (6)       (9)
----------------------------------                          ---------- ---------
Total recognised gains and losses for the year                 6,475     2,375
----------------------------------                          ---------- ---------

                           CONSOLIDATED BALANCE SHEET
                                at 30 June 2004
                                                                      Restated
                                                             2004         2003
                                                             £000         £000
Fixed assets
Intangible assets                                              50           58
Tangible assets                                            25,901       28,411
Investments                                                   515          493
----------------------------                            ---------    ---------
                                                           26,466       28,962
                                                       ---------    ---------

Current assets
Stocks                                                     11,745       11,698
Debtors                                                    26,875       24,192
Cash at bank and in hand                                    5,625        4,608
----------------------------                            ---------    ---------
                                                           44,245       40,498
                                                       ---------    ---------

Creditors: amounts falling due within one year
Trade and other creditors                                  24,966       25,608
Corporation tax                                             1,151        1,202
Proposed dividend                                           2,185        2,185
----------------------------                            ---------    ---------
                                                           28,302       28,995
                                                        ---------    ---------
Net current assets                                         15,943       11,503
----------------------------                            ---------    ---------

Total assets less current liabilities                      42,409       40,465
Creditors: amounts falling due after more than one year     1,907        3,656
Provisions for liabilities and charges                      1,040          704
Equity minority interest                                       28           36
----------------------------                            ---------    ---------
Net assets                                                 39,434       36,069
----------------------------                            ---------    ---------

Capital and reserves
Called up share capital                                     4,352        4,352
Share premium                                              26,909       26,907
Revaluation reserve                                         1,727        1,874
Capital redemption reserve                                    693          693
Capital reserve - own shares                                 (164)        (164)
Profit and loss account                                     5,917        2,407
----------------------------                            ---------    ---------
Equity shareholders' funds                                 39,434       36,069
----------------------------                            ---------    ---------

                        CONSOLIDATED CASH FLOW STATEMENT
                        for the year ended 30 June 2004
                                                            2004          2003
                                                            £000          £000
Net cash inflow from operating activities                  9,637         9,464
------------------------------                          --------     ---------

Returns on investments and servicing of finance
Interest received                                             13            39
Interest paid                                                (85)         (147)
Interest element of lease/ hire purchase payments           (157)         (214)
Dividends paid to minority interests                         (15)          (16)
---------------------------------                         ------     ---------
Net cash outflow from returns on investments and servicing
of finance                                                  (244)         (338)
---------------------------------                         ------     ---------

Taxation
UK corporation tax paid                                   (2,192)       (2,095)
------------------------------                          --------     ---------

Capital expenditure and financial investment
Purchase of tangible fixed assets                         (2,490)       (2,217)
Proceeds from sale of tangible fixed assets                  264         1,520
------------------------------                          --------     ---------
                                                          (2,226)         (697)
                                                        --------     ---------

Acquisitions and disposals
Sale of subsidiary undertaking                                 -           109
Net cash disposed of with subsidiary undertaking               -          (108)
------------------------------                          --------     ---------
                                                               -             1
                                                        --------     ---------

Equity dividends paid                                     (3,225)       (2,948)
------------------------------                          --------     ---------

Cash inflow before use of liquid resources and             1,750         3,387
financing                                               --------     ---------
------------------------------

Financing
Issue of ordinary share capital                                2             -
Repayment of amounts borrowed                               (735)         (688)
------------------------------                          --------     ---------
                                                            (733)         (688)
                                                        --------     ---------

Increase in cash in the year                               1,017         2,699
------------------------------                          --------     ---------


                             Notes on the Accounts
                        for the year ended 30 June 2004

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 on ordinary activities before taxation attributable to each
of the classes of activity of the Group are as follows:
Segmental analysis
                                               2004                                          2003
                                         ------------ ------                       ----------------
                                                                                       Continuing
                                                                                       activities
                            Turnover   Total profit          Turnover   Total profit       profit
                                £000           £000              £000           £000         £000
Engineering
Products
- Precision
Components                    36,836          2,684            37,440          1,749        1,749
- Industrial
Products                      38,046            747            46,285          2,196        2,259
Building
Products                      40,430          4,954            36,132          3,986        3,986
Leonardo                           -              -                67             12            -
------------------------     -------        -------            ------         ------       ------
Sub total                    115,312          8,385           119,924          7,943        7,994

Pension
deficit cost                                   (139)                            (256)        (256)
------------------------     -------        -------            ------         ------       ------
                             115,312          8,246           119,924          7,687        7,738
------------------------     -------        -------            ------         ------       ------
Share of
operating
profit in
associates                                       50                               55           55
Profit on sale
of land                                         880                              305          305
Business
closure costs                                     -                             (875)           -
Goodwill
write                                             -                           (2,388)           -
off
Net                                            (229)                            (322)        (322)
interest    
------------------------     -------        -------            ------         ------       ------
                                              8,947                            4,462        7,776
------------------------     -------        -------            ------         ------       ------

Engineering Products has been split between Precision Components and Industrial
Products, to highlight the relative performance of the two subdivisions.
Comparative figures have been restated to show the split on the same basis.
The amounts disclosed as pension deficit cost have been shown separately because
they relate to closed schemes, 89% 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.

                             NOTES TO THE ACCOUNTS
                        for the year ended 30 June 2004

Turnover by destination is as follows:
                                                 2004         2003         2003
                                                        Continuing
                                           Total        activities        Total

                                                 £000         £000         £000
United Kingdom                                 94,236      100,377      102,876
Europe   - EU                                  13,127       12,514       12,514
         - Non EU                               1,069          680          680
Other                                           6,880        3,854        3,854
--------------------------                   --------      -------     --------
                                              115,312      117,425      119,924
--------------------------                   --------      -------     --------

2 Dividends
                                                               2004       2003
                                                               £000       £000
Interim dividend of 3.0p per share (2003: 2.45p), paid 6
April 2004                                                    1,040        850
Proposed final dividend of 6.3p per share (2003: 6.3p),
payable 29 October 2004                                       2,185      2,185
-------------------------------------                        ------   --------
                                                              3,225      3,035
                                                             ------   --------

3 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
£6,481,000 (2003: £2,384,000). Earnings per share is based on the weighted
average number of ordinary shares in issue during the year ended 30 June 2004 of
34,817,592 (2003: 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 34,980,410 (2003:
34,864,434).

4         Reconciliation of movement in shareholders' funds

                                                                      Restated
                                                               2004       2003
                                                               £000       £000
Profit attributable to shareholders                           6,481      2,384
Dividends                                                    (3,225)    (3,035)
-------------------------------------                        ------   --------
                                                              3,256       (651)
Exchange difference                                              (6)        (9)
New shares issued                                                 2          -
UITF 17 charge on long-term incentive plan                      113          -
Goodwill written back on disposals                                -      2,388
-----------------------------------                        --------   --------
Net increase in shareholders' funds                           3,365      1,728
Opening shareholders' funds                                  36,069     34,341
-----------------------------------                        --------   --------
Closing shareholders' funds                                  39,434     36,069
-----------------------------------                        --------   --------


5 Post balance sheet events

On 31 July 2004 the Company completed the acquisition of Roof-Pro Limited for a
cash consideration of £3 million, net of cash acquired.

On 6 September 2004 the Company completed the acquisition of Timloc Building
Products Limited for a cash consideration of £3.25 million, based upon a value
of net assets acquired of £1.5 million. Any variation in this figure, determined
by completion accounts, will reflect in the appropriate adjustment to the
purchase price.

6 Audited Accounts

The above financial information is derived from the statutory accounts for the
years ended 30 June 2004 and 30 June 2003, on both of which the auditors have
issued an unqualified opinion.
The information does not constitute statutory accounts as defined in Section 240
(1) of the Companies Act 1985.
The accounts for the year ended 30 June 2003 have been filed with the Registrar
of Companies and the accounts for the year ended 30 June 2004 will be filed in
due course.
Copies of the Annual Report and Accounts will be posted to all shareholders on
15 September 2004. 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 2004.







                      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