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Alumasc Group Plc (ALU)

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Wednesday 13 September, 2006

Alumasc Group Plc

Final Results

Alumasc Group PLC
13 September 2006


                                                                                

                                                                                 

                THE ALUMASC GROUP PLC - PRELIMINARY ANNOUNCEMENT                

Alumasc (ALU.L), the premium building and engineering products group which since
January 2006 has been classified under Construction & Materials, announces a
good result, ahead of expectations, in challenging conditions in the year to 30
June 2006.

Financial Highlights
   
  * Revenue from continuing activities increased by 16% to £132.7m, of which
    metal cost increases, which were passed on to customers in higher selling
    prices, accounted for growth of £12.9m or 11%. Exports increased to £37.2m
    from £21.4m.
   
  * Trading profit from continuing operations of £9.0m was a strong
    performance. The H2 figure of £5.7m was up 17% and the final quarter was
    particularly strong.
   
  * Pre-tax profit on continuing operations of £7.9m (2005: £7.7m) reflected
    continued growth in Building Products and a second half recovery in
    Engineering Products.
   
  * Basic earnings per share on continuing operations were 15.5p (2005:14.6p)
    and 11.1p including discontinued activities (2005: 6.2p).
   
  * Unchanged dividends per share of 9.3p are covered 1.7 times by earnings
    per share on continuing operations.

Commercial Highlights
   
  * Building Products had a fifth successive year of profit growth, increasing
    to £6.5m (including associate) (2005: £6.0m), 72% (2005: 65%) of the Group
    total, on revenue of £55.5m (2005: £48.7m), much of the growth deriving from
    exports. The Building Products companies expanded ahead of underlying market
    trends. They introduced new products, extended into new markets, and
    launched innovative and product-differentiating software aimed at saving
    specifiers time and money.
   
  * Alumasc Precision Components' trading profit of £2.0m (2005: £2.1m) on
    revenue of £28.6m (2005: £27.4m) represented an achievement in its first
    year without sales to its former largest customer, MG Rover. The year was a
    record one for new project start-ups (around 70% of its business has changed
    across the last two years), the H2 performance showed a significant
    improvement, and the final quarter began to show the benefits of some of the
    new projects coming on stream. Revenue reliance on automotive companies
    further reduced (to 6% of the Group total from 20% in 2003).
   
  * Acquisitions are being sought, in particular in Building Products.

John McCall, Chairman, stated: "Within our businesses, there has been solid
progress in the last year linked to the introduction of new products, investment
in manufacturing, and the development of our markets. We are optimistic that
this will continue in the current financial year."

Paul Hooper, Chief Executive, added: "The Group's strategy to move forward
through building niche, highly customer-focussed businesses, supported by strong
technical service and marketing expertise and featuring higher added-value,
should serve it well in the future. The resilience shown in the past year in
overcoming rising costs outside its control give confidence that the Group can
continue to manage the various challenges and deliver further progress in the
current year."


Presentation:

Today, from 09:30am to 10:30am, a presentation to analysts and private client
investment advisers will be held at the offices of KBC Peel Hunt, 4th Floor, 111
Old Broad Street, London EC2N 1PH.


Enquiries:
 
The Alumasc Group plc                                             01536 383844  
Paul Hooper (Chief Executive)                                                   
John McCall (Chairman)                                                          
                                                                                
Bankside Consultants Limited                                                    
Charles Ponsonby                                                 020 7367 8851  
Ian Payne                                                        020 7367 8853  



                              
                              CHAIRMAN'S STATEMENT 

Summary

Alumasc's profit before tax on continuing operations for the year ended 30 June
2006 of £7.9 million (2005: £7.7 million) was a good result, representing a
strong recovery from the disappointing performance in the first half year. There
was continued growth from our building products activities and a second half
recovery in our engineering business.

The contribution from building products to trading profit (including associate)
on continuing operations grew from £6.0 million to £6.5 million and represented
72% of the total (2005: 65%).

The Group's borrowings ended the year at £3.4 million, virtually unchanged from
the opening position of £3.3 million. This represents gearing of 14% on
Shareholders' Funds which, under IFRS, are now stated net of pension
liabilities.

The directors are recommending an unchanged final dividend per share of 6.3p,
giving a total for the year of 9.3p (2005: 9.3p), covered 1.7 times by earnings
from the ongoing business.

Trading

Trading profit from continuing operations of £9.0 million was a strong
performance in the light of a number of negative factors set out in the Chief
Executive's Review (2005: £9.3 million). In the second half, trading profit grew
by 17% to £5.7 million, 63% of the total for the year.

Our building products companies grew revenue to £55.5 million (2005: £48.7
million) and trading profit (including associate) to £6.5 million (2005: £6.0
million). Margins remained satisfactory despite rising material costs, and the
growth must be seen against the background of a weaker construction marketplace
in the UK.

Revenue from Alumasc Precision's continuing operations grew by £1.1 million to
£28.6 million in the year, having fallen in the first half year. Although
trading profit for the full year of £2.0 million was below the previous year
(£2.1million), the second half performance showed a strong recovery as the
exceptional level of new work began to bed down.

The increase in revenue from our Industrial Products businesses (from £38.7
million to £48.6 million) is misleading, since the value of metal included
within these sales grew by an even greater amount. While Brock Metal was able to
improve its performance in this period of rising metal prices, Alumasc Dispense
continued to suffer from weak demand from its UK brewing base as it worked to
develop new products. Trading profit of £0.5 million was below the previous
year's £1.2 million as a result.

It is encouraging that each division performed better as the year progressed,
finishing on a positive note.

Board

David Sowerby will retire in October this year, after 15 years as Alumasc's
Group Finance Director. David's contribution in both the financial arena and
more generally has been major and I take this opportunity to express my personal
gratitude. His replacement will be Andrew Magson, who joins Alumasc from BPB
plc, where he held the position of Group Financial Controller prior to that
company's acquisition by Saint-Gobain. I welcome Andrew on your behalf.

Development

The past year has been remarkable for the violent movements - nearly all upwards
- in commodity prices, energy included. Alumasc's ability to cope with these, at
a time of generally low inflation, is a credit to the business. It is also
relevant to our future development plans, where a number of our businesses are
well placed to exploit the underlying imperatives of greater efficiency in the
generation of power and in the utilisation of energy. This theme is discussed
further in the Chief Executive's Review.

We have invested strongly in our manufacturing base during the past year, not
least in pursuit of energy efficiency and energy-efficient end products.

We are also seeking acquisition opportunities, to build on our base of leading
building product businesses and to enhance our ability to exploit the
opportunities presented by our markets.

Prospects

A number of factors, which have influenced the past year, continue to affect our
business going forward. The costs of energy and materials are significant to
each business and largely outside its control. However, by working closely with
suppliers and customers, we have to a large extent mitigated their impact on our
performance and we will continue to minimise and pass on such increases wherever
possible.

Within our businesses, there has been solid progress in the last year linked to
the introduction of new products, investment in manufacturing and the
development of our markets. We are optimistic that this will continue in the
current financial year.

 

John McCall                                                 13 September 2006
Chairman


                            CHIEF EXECUTIVE'S REVIEW                            

Overview

The Group's profit before tax from continuing operations came in at £7.9m (2005:
£7.7m), with a substantial improvement in the second half year as forecast in
the Interim Announcement and, in particular, during the final quarter. In
delivering the increase in profit the Group has shown considerable resilience in
overcoming a number of challenges including sharply higher metal and energy
prices (substantially passed on to customers), recovering from the collapse in
April 2005 of one of the Group's former largest customers (MG Rover), resulting
in subsequent closure of a subsidiary, and the funding of pension deficits.

Revenue from continuing operations grew by £17.8m, 16%, compared with the
previous year, to £132.7m. Metal cost increases, which were passed on to
customers in higher selling prices, accounted for growth of £12.9m, or 11%. All
divisions contributed to a rise in exports to £37.2m (28% of revenue) versus a
prior year of £21.4m (19% of revenue). The Group responded well in replacing the
loss of MG Rover, which had benefited the prior year. It also had to offset
energy cost increases of around £0.8m.

The Building Product businesses expanded ahead of underlying market trends. They
introduced new products, extended into new markets, and launched innovative and
product differentiating software aimed at saving specifiers time and money.
Exports have played an increasing part in this division's revenue.

Meanwhile, Alumasc Precision Components has created a firm platform during a
challenging year which included an unprecedented level of new project
introductions in the areas targeted for development such as non-automotive
diesel engine components. Several new projects commenced with Caterpillar,
Perkins, Deutz and JCB. There were also good developments in niche component
areas for Mercury Marine, via Honeywell, and for Aston Martin on its new V8
Vantage and DB9 models.

A third consecutive year of improvements in the Health and Safety performance of
our companies saw a halving of the number of days lost due to accidents in the
workplace. Two months of the year had no days lost linked to an accident. Health
and Safety data are among our most important KPIs and this topic is the first
item on the agenda of all executive and board meetings. There has been a welcome
reduction in insurance costs, as a side benefit, from the significant
improvements that have been made in this area.

Capital expenditure of £5.3m compared with the deprecation charge of £3.3m. The
former was predominantly linked to expansion requirements, particularly at our
two core businesses of Building Products and Precision Components. In several
cases, these investments also gave energy cost savings and made primary or
secondary Health and Safety improvements.

As previously announced, the Group closed its loss making gravity diecastings
business, Copal Casting, in February 2006 following abortive efforts to sell it
as a going concern. This move has allowed the Precision Components division to
focus on more complex, and higher value activity, while selectively transferring
gravity die castings business, with the support of its customers, to lower cost
economies.

The Group's strategy remains one of activity focus towards premium products
requiring high quality technical support and service. Bolt-on acquisitions for
our Building Product businesses will continue to complement the Group's organic
expansion plans.


Building Products

The Building Products division had a fifth successive year of profit growth,
improving by £0.4m (7%) on revenue which was £6.9m (14%) ahead of the prior year
at £55.5m. An estimated £0.4m of the sales growth related to metal cost
increases which were passed on to customers. The importance of our Building
Products division is apparent in its profit growth to £6.5m (including
associate), now accounting for 72% of the Group's total profit. In the prior
year the equivalent figure was £6.0m, 65% of Group profit.

Alumasc Exterior Building Products made a significant contribution to the
division's revenue increase. A large Armaseam standing seam roof supply contract
was made for an Alcoa aluminium smelter in Iceland, contributing £2.6m to this
increase. Each of AEBP's other areas of activity grew also. In particular, both
waterproofing and external walling insulation enjoyed a significant increase in
revenue against the prior year. Potential capacity constraints were overcome
through investment in a new, industry-leading, powder paint plant, along with
new production equipment for walling render. Both plants have also contributed
to Health and Safety, along with environmental, benefits. The growth in social
housing refurbishment and new commercial build have all contributed to the
increased sales activity.

Roof-Pro delivered a robust revenue performance despite a slowdown in
supermarket and retail expansion. This is being countered by the launch of new
systems to move the business forwards.

Sustainability and energy conservation are topics which seem to feature more and
more in the news, affecting everybody's quality of life. With its leading
position in the Green Roof market AEBP is well positioned to benefit from this
growing area of activity which is being driven by both legislation and
environmental/sustainability pressures. Green Roof enquiries have increased
substantially for AEBP. Sustainability is a growing area of interest to the
Group.

AEBP's growth has been made against a UK background of a 1.1% reduction in
construction activity during calendar year 2005, and recent 2006 forecasts of an
overall construction growth of 0.6% (Source: Construction Products Association)
and 2.9% (Source: Experian). The business will continue to invest in sales
resource, marketing, technical support and new products to keep ahead of the
underlying market forecasts.

Alumasc Interior Building Products grew its revenue despite the introduction of
new competition in the UK. It widened its distribution in the UK and launched
two new products, Boxing Pak and a washroom product range under the joint brand
of PendockShires. Both have been well received in their respective market
places.

Its recent product launches put it in a good position to move forward in the
forthcoming year while continuing to respond to market pressures.

Within Alumasc Construction Products, Elkington Gatic had another outstanding
year of growth driven by sales of its well-established Gatic specialist access
covers and the more recently launched Gatic Slotdrain in both the UK and export
markets. Of particular note was the 23% revenue growth for Gatic Slotdrain
driven by export sales and the success in the UK of its innovative software that
has been estimated to reduce a drainage system design time from two days to 20
minutes. This has been a major benefit for customers.

The agreement with Saint-Gobain to distribute Gatic engineered access covers on
the Continent resulted in a first full year of satisfactory growth in sales to
Europe. This has led to a further distribution agreement, announced in March
2006, for Saint-Gobain to distribute the Gatic Slotdrain product into certain
European markets which should benefit the current year. A product trial has
already commenced at Charles de Gaulle Airport in Paris.

To meet the increased demand for Gatic Slotdrain a further investment was made
in laser cutting equipment. Additional shift work also commenced in the second
half year.

Elkington China, the marketing arm based in Hong Kong, had an encouraging year
with good growth. It is well positioned in a part of the world where economic
activity is increasing.

Following two years of good progress, Scaffold and Construction Products' sales
performance was impacted by increased competition in the UK and Ireland. It
moved fast to contain sourcing costs, to meet price expectations, in a market
where metal prices were moving upwards, performing creditably as a result.

Overall, ACP had a good year where it had to overcome several hurdles including
high cost increases, particularly for raw materials.

Timloc successfully renewed its main customer contracts and won additional
business which contributed to a good sales increase. While seeking to mitigate
some raw material cost increases through an aggressive sourcing exercise, it
invested into sales and marketing resource. It launched several new products,
including the Acoustray, which reduces flanking noise transmission between
floors in apartments with the unique benefit of integrating a preformed
adjustable cavity tray and an insulation panel, and it has been specified by
many leading housebuilders. Timloc also invested during the year in automatic
silo polymer equipment to increase efficiency within manufacturing while
improving Health and Safety by eliminating manual handling and reducing the
potential for slips from loose polymer granules.
 

Precision Components

Alumasc Precision Components had a record year for new project start-ups (around
70% of its business has changed across the last two years). It grew its revenue
by £1.1m (4%) to £28.6m, albeit slightly more than half of this growth was
attributable to the passing on of metal cost increases. In its first year
without sales to the APC's former largest customer, MG Rover, this was an
achievement. While the full year trading profit was marginally below last year's
level at £2.0m (2005 : £2.1m), the final quarter of the year began to show the
benefits of some of the new projects coming on-stream.

The division's strategy to focus on non-automotive diesel engine component
supply combined with niche automotive work is moving forward satisfactorily. In
the last three years there has been a significant reduction in APC's sales to
automotive companies which accounted for 20% of Group revenue in 2003. In 2006
the equivalent revenue reduced to 6%. Outside the automotive area sales have
accelerated to Caterpillar, a company that has recently posted record quarterly
results, with five major engine plants now being supplied in North America. APC
also expanded its range of components supplied to Caterpillar's UK subsidiary,
Perkins Engines, to become the principal supplier for both cast and machined
aluminium engine components. APC moved forward at a rapid pace with Deutz, a
company which has itself had encouraging sales growth. JCB's new engine range
created additional demand for the division. Mercury Marine, in North America,
increased its demand for components on its new 4 cylinder and 6 cylinder engines
with components being sourced from Precision Components via Honeywell Thermal
Systems. Supporting this customer in its relocation to production facilities in
Mexico helped to secure the continuation of the contract.

A complex, multifaceted, component project, won at the niche automotive
customer, Aston Martin, will benefit the current financial year. It will be used
in the manufacture of both the DB9 and the V8 Vantage models. APC was also
successful in attracting Siemens back as a customer.

APC has had to handle a major transformation in its business during the year.
Its reputation for the timely supply of components, supported by
industry-leading engineering and technical support, is appreciated, especially
by those customers that have built strong brand names. This should put APC in a
good position to grow further both with its current customers and with new ones
attracted by APC's strengths and reputation.
 

Industrial Products

The Industrial Products businesses grew their total revenue by £9.8m (25%)
against the prior year. A higher figure of £11.8m was associated with metal cost
increases which were passed on by Brock Metal to its customers. Alumasc
Dispense's sales reduced following an exceptionally strong prior year in which
it had record countermount and tap sales.

Brock Metal had a much improved year on the basis of a strategy in which it was
more selective in seeking new business, some of which was achieved in niche
automotive markets. It also increased its exports to offset a decline in its
traditional UK business. The massive second half year movements in aluminium and
zinc prices created both challenges and opportunities.

Alumasc Dispense supplied new countermounts for InBev Becks, Cobra and
Carlsberg. Its tap sales were also assisted by a significant stainless steel tap
order from Wetherspoons and its glassware sales by a major new sales contract
with Magners Cider.

Alumasc Dispense continued the development of new products. Its launch of an
innovative beer cooler, ABC Trimcool, has been successful with several brewers,
such as SAB/Miller, InBev and Thwaites, either trialling the product or placing
orders. Its Wireless Energy Transfer (WET) technology will lead to opportunities
in the current financial year for illuminating point of sale equipment.
 

Prospects

The Group had to move fast and resolutely during the year to offset
unprecedented rises in raw material costs, in particular for zinc and aluminium.
It has had to pass on £12.9m metal cost increases to its customers. Increased
energy costs of around £0.8m have also been contended with.

It is difficult to forecast what the metal cost movements will be in the current
year. It is, however, encouraging that the Group has proven the efficacy of its
metal cost escalation agreements, which are in place with many of its customers,
along with the resolve, where these are not in place, to ensure that any impacts
are limited.

Energy costs are likely to rise further. The Group has joined an innovative
grouping arrangement with several other companies to seek some flexibility for
part of its electricity purchase arrangements. This should limit further cost
increases while giving the ability to benefit from downward price movements. The
Group's higher energy use companies have been investing in more energy efficient
equipment. This programme, along with other initiatives, will continue to reduce
its energy consumption.

Forecasts for the UK building product market place show the likelihood of
limited growth across the next year. The Building Products division will,
therefore, be working hard to build on its success to date. New products and
market extensions will be key ingredients for future success. In particular, the
division will augment its expertise and knowledge to capitalise fully on its
presence in those areas which show good growth potential such as sustainable
green roofs. The opportunity will be taken to accelerate further the success of
Gatic Slotdrain, especially for additional exports. Bolt-on acquisitions in
niche areas will be sought to assist the targeted organic growth.

Following its very busy year of replacing old projects with new ones, APC will
continue to build on its success which is in most cases now closely linked to
successful customers with strong brand names and reputations. APC has an
ambitious programme to grow further outside the volume automotive area, while
building its expertise in complex low volume work and, in particular,
non-automotive diesel business.

The Group's strategy to move forward though building niche, highly
customer-focused businesses supported by strong technical service and marketing
expertise, and featuring higher added-value, should serve it well in the future.
The resilience shown in the past year in overcoming rising costs outside its
control gives confidence that the Group can continue to manage the various
challenges and deliver further progress in the current year.
 

Paul Hooper
Chief Executive                                               13 September 2006


                                FINANCIAL REVIEW

The financial statements for the year to 30 June 2006 are presented in
accordance with the Group's accounting policies based on International Financial
Reporting Standards (IFRS), and comparative figures for the year to 30 June 2005
have been restated on the same basis. The major impact of the new standards
derives from the inclusion of IAS 19 pension deficits in the balance sheet and
an IAS19-driven pension charge in the income statement.


Continuing operations

During the year, the Group saw growth in its building product and precision
component activities; the latter substantially recovered from the loss of Rover
business in April 2005, with second half profits before tax substantially ahead
of the first half, and the same period in the previous year.

 
                                               H1         H2       2006       2005  
                                                                  Total      Total  
                                             ------     ------     ------    -------
                                         £million   £million   £million   £million  
Building Products *                           2.6        3.9        6.5        6.0  
Precision Components                          0.6        1.4        2.0        2.1  
Industrial Products                           0.1        0.4        0.5        1.2  
                                             ------     ------     ------    -------
Trading profit                                3.3        5.7        9.0        9.3  
Interest                                     (0.2)      (0.3)      (0.5)      (0.4) 
Pension interest                             (0.4)      (0.4)      (0.8)      (1.2) 
                                             ------     ------     ------    -------
                                              2.7        5.0        7.7        7.7  
Profit on sale of property                    0.2          -        0.2          -  
                                             ------     ------     ------    -------
                                              2.9        5.0        7.9        7.7  
                                             ======     ======     ======    =======
                                                                                    
Prior year                                    3.7        4.0        7.7             
                                             ======     ======     ======           

 

* including associate.

 

Discontinued operations

The loss of the Rover business at the Group's gravity diecast operation at
Handsworth, Birmingham, and the inability to reach an acceptable agreement with
a buyer, led to the closure of this business during the year. This activity is
treated as discontinued in these accounts (and was shown as "to be discontinued"
last year).
 

Trading - continuing operations

Revenue grew by £17.8 million to £132.7 million (2005: £114.9 million). The
growth comprised approximately £12.9 million arising from increases in aluminium
and zinc prices, substantially passed on to customers, a minor additional
contribution from a full year's sales for the two businesses acquired in the
first two months of the previous year, and organic growth, primarily in the
Group's core building product businesses.

There was little or no change in underlying gross margin percentages once the
impact of commodity price changes is eliminated.

Net finance costs increased from £0.4 million to £0.5 million reflecting a full
year impact of £6.5 million increased borrowings made to finance acquisitions in
the previous year, capital expenditure in excess of depreciation, and other cash
flows.
 

Earnings, tax and dividend

Earnings per share on continuing operations were15.5p (2005: 14.6p), and 11.1p
per share including discontinued activities (2005: 6.2p). The effective tax rate
on profit from continuing activities excluding profit on sale of property was
31.4% (2005: 33.6%). Profits on sale of property are tax-free because the Group
has capital tax losses available.

The Board is recommending an unchanged total dividend per share of 9.3p covered
1.7 times by the profit from continuing operations. The directors propose an
unchanged final dividend per share of 6.3p payable on 2 November 2006 to
shareholders on the register at 13 October 2006.

Equity attributable to shareholders increased by 15.8% to £24.3 million (2005:
£21.0 million).
 

Cash flow and borrowings

Net borrowings at 30 June 2006 were virtually unchanged from the previous year
at £3.4 million (2005: £3.3 million) despite the impact of capital expenditure
of £5.3 million (2005: £3.7 million) compared with depreciation and amortisation
of £3.3 million (2005: £3.7 million) and the impact of the closure of the
Group's gravity diecasting business.

Year end borrowings benefited from strong final quarter cash inflows as well as
continued good underlying cash control.
 

Pensions

Final salary pension costs, measured under IAS 19, fell by £0.5 million to £1.6
million. The overall funding position of the Group's two final salary pension
schemes improved by £5.3 million during the year, the result of a £6.0 million
increase in the market value of the schemes' assets including £2.0 million of
cash payments (2005: £1.5 million) made to reduce the deficit less a £0.7
million increase in the schemes' liabilities. Net of deferred tax, the overall
deficit reduced to £17.0 million at 30 June 2006 (2005: £20.7 million).
 

Key Performance Indicators

Set out below are five KPIs against which the Group judges its performance:

 
                                             2006          2005         Change  
                                               £m            £m              %  
Revenue:                                                                        
- Total                                     132.7         114.9          +15.5  
- Building Products                          55.5          48.7          +14.1  
- Precision Components                       28.6          27.4           +4.1  
- Industrial Products                        48.6          38.7          +25.4  
                                                                                
Trading profit (incl. associate)                                                
- Total                                       9.0           9.3           -3.2  
- Building Products                           6.5           6.0           +7.0  
- Precision Components                        2.0           2.1           -3.5  
- Industrial Products                         0.5           1.2          -54.3  
                                                                                
Net borrowings - year end                     3.4           3.3           +1.2  
                                                                                
Gearing - year end                           13.9%         15.9%          +2.0  
                                                                                
Capital expenditure and investment            5.3           3.7          +44.0  
                                                                                

 

The Group remains committed to expanding its operations by acquisition in the
building products sector as well as overall organic growth supported by
appropriate capital investment.
 

D R Sowerby
Group Finance Director                                       13 September 2006


                         
                          CONSOLIDATED INCOME STATEMENT 
                        for the year ended 30 June 2006                         

  
 
                                                              2006        2005  
                                                  Notes      £'000       £'000  
Continuing operations                                                           
                                                                                
Revenue                                               1    132,706     114,869  
Cost of sales                                              (99,757)    (83,642) 
                                                            --------   ---------
Gross profit                                                32,949      31,227  
Selling and distribution costs                             (11,540)    (10,615) 
Administrative expenses                                    (12,439)    (11,343) 
                                                            --------   ---------
Trading profit                                        1      8,970       9,269  
Profit on disposal of property                        1        242           -  
                                                            --------   ---------
Operating profit                                             9,212       9,269  
                                                                                
Finance revenue                                                 22          24  
Finance costs                                                 (568)       (419) 
Other finance expense - pensions                              (786)     (1,201) 
Share of post-tax profit in associates                          23          24  
                                                                                
                                                            --------   ---------
Profit before taxation                                       7,903       7,697  
Income tax expense                                    4     (2,408)     (2,586) 
                                                            --------   ---------
Profit for the year from continuing operations               5,495       5,111  
                                                                                
Discontinued operations                                                         
                                                                                
Loss for the year from discontinued operations              (1,551)     (2,946) 
                                                                                
                                                            --------   ---------
Profit for the year                                          3,944       2,165  
                                                            ========   =========
                                                                                
Profit for the year attributable to:                                            
Equity holders of the parent                                 3,928       2,165  
Minority interest                                               16           -  
                                                            --------   ---------
                                                             3,944       2,165  
                                                            ========   =========
                                                                                
                                                             Pence       Pence  
                                                                                
Basic earnings per share                                                        
- continuing operations                                       15.5        14.6  
- discontinued operations                                     (4.4)       (8.4) 
                                                            --------   ---------
                                                      3       11.1         6.2  
                                                            ========   =========
                                                                                
Diluted earnings per share                                                      
- continuing operations                                       15.5        14.5  
- discontinued operations                                     (4.4)       (8.3) 
                                                            --------   ---------
                                                      3       11.1         6.2  
                                                            ========   =========


 

            CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE             
                        for the year ended 30 June 2006                         

 
 
                                                             2006         2005  
                                                            £'000        £'000  
                                                                                
Income and expense recognised directly in equity                                
                                                                                
Actuarial gain on defined benefit pensions                  3,784          961  
Movement in cash flow hedging position                          1            -  
Tax on items taken directly to or transferred from         (1,135)        (288) 
equity                                                                          
                                                                                
                                                           --------    ---------
Net income recognised directly in equity                    2,650          673  
for the year                                                                    
Profit for the year                                         3,944        2,165  
                                                                                
Total recognised income for the year                                            
                                                           --------    ---------
attributable to parent company equity holders               6,594        2,838  
                                                           ========    =========
                                                                                
                                                                                
Attributable to:                                                                
Equity holders of the parent                                6,578        2,838  
Minority interest                                              16            -  
                                                           --------    ---------
                                                            6,594        2,838  
                                                           ========    =========

  

                           CONSOLIDATED BALANCE SHEET                           
                                at 30 June 2006                                 

   
                                               Notes         2006         2005  
                                                            £'000        £'000  
Assets                                                                          
Non-current assets                                                              
Property, plant and equipment                              25,407       25,780  
Goodwill                                                    5,556        5,556  
Other intangible assets                                       563          319  
Investments in associates                                       -          250  
Financial assets                                               34          237  
Deferred tax assets                                         7,292        8,873  
                                                          ---------    ---------
                                                           38,852       41,015  
Current assets                                                                  
Inventories                                                14,626       12,248  
Trade and other receivables                                31,744       30,209  
Cash and short term deposits                                  167            -  
Derivative financial assets                                 1,346            -  
                                                          ---------    ---------
                                                           47,883       42,457  
Non-current assets classified as held for sale              1,618            -  
                                                          ---------    ---------
Total assets                                               88,353       83,472  
                                                          =========    =========
Liabilities                                                                     
Non-current liabilities                                                         
Interest bearing loans and borrowings                           -         (722) 
Employee benefits payable                                 (21,283)     (27,325) 
Provisions                                                   (430)        (457) 
Deferred tax liabilities                                   (1,245)      (1,051) 
                                                          ---------    ---------
                                                          (22,958)     (29,555) 
Current liabilities                                                             
Bank overdraft                                             (2,817)      (1,780) 
Interest bearing loans and borrowings                        (722)        (831) 
Employee benefits payable                                  (3,024)      (2,252) 
Trade and other payables                                  (31,684)     (26,422) 
Provisions                                                   (962)        (926) 
Income tax payable                                           (534)        (704) 
Derivative financial liabilities                           (1,333)           -  
                                                          ---------    ---------
                                                          (41,076)     (32,915) 
                                                          ---------    ---------
Total liabilities                                         (64,034)     (62,470) 
                                                          ---------    ---------
                                                                                
                                                          ---------    ---------
Net assets                                                 24,319       21,002  
                                                          =========    =========
Equity                                                                          
Called up share capital                            5        4,412        4,409  
Share premium                                      5       27,406       27,387  
Other reserve                                      5        1,401        1,551  
Capital redemption reserve                         5          693          693  
Capital reserve - own shares                       5         (133)        (165) 
Hedging reserve                                    5            1            -  
Retained earnings                                  5       (9,495)     (12,901) 
                                                          ---------    ---------
Equity attributable to equity holders of the               24,285       20,974  
parent                                                                          
Minority interest                                  5           34           28  
                                                          ---------    ---------
Total equity                                               24,319       21,002  
                                                          =========    =========

 

                        CONSOLIDATED CASH FLOW STATEMENT                        
                        for the year ended 30 June 2006                         

   
                                                            2006         2005  
                                                           £'000        £'000  
Operating activities                                                           
Operating profit from continuing operations                9,212        9,269  
Adjustments for:                                                               
Loss before taxation from discontinued operations         (2,225)      (4,063) 
Depreciation                                               3,160        3,461  
Amortisation                                                 142          194  
Impairments of property, plant and equipment                   -        1,040  
Gain on disposal of property, plant and equipment           (297)         (14) 
Gain on sale of investments                                  (78)           -  
Increase in inventories                                   (2,602)        (245) 
Increase in receivables                                   (1,559)      (4,518) 
Decrease in trade and other payables                       5,332        1,088  
Movement in provisions                                         9        1,161  
Movement in retirement benefit obligations                (2,272)      (1,300) 
Other items                                                    -          151  
                                                         ---------    ---------
Cash generated from operations                             8,822        6,224  
Tax paid                                                  (1,264)      (2,082) 
                                                         ---------    ---------
Net cash inflow from operating activities                  7,558        4,142  
                                                         ---------    ---------
Investing activities                                                           
Purchase of property, plant and equipment                 (4,953)      (3,511) 
Payments to acquire intangible fixed assets                 (390)        (198) 
Proceeds from sale of property, plant and equipment        1,108        2,043  
Acquisition of subsidiary undertakings net of cash                             
acquired                                                     (50)      (6,490) 
Proceeds from sale of business activities                    201          449  
Proceeds from sale of investments                            281            -  
Return of capital from associate                               -           52  
                                                         ---------    ---------
Net cash outflow from investing activities                (3,803)      (7,655) 
                                                         ---------    ---------
                                                                               
Financing activities                                                           
Interest paid                                               (546)        (395) 
Equity dividends paid                                     (3,271)      (3,248) 
Repayment of amounts borrowed                               (831)        (784) 
Proceeds from issue of share capital                          22          535  
                                                                               
                                                         ---------    ---------
Net cash outflow from financing activities                (4,626)      (3,892) 
                                                         ---------    ---------
                                                                               
Net decrease in cash and cash equivalents                   (871)      (7,405) 
                                                         ---------    ---------
                                                                               
Cash and cash equivalents at beginning of period          (1,780)       5,625  
Effect of foreign exchange rate changes                        1            -  
                                                                               
                                                         ---------    ---------
Cash and cash equivalents at end of period                (2,650)      (1,780) 
                                                         =========    =========
Cash and cash equivalents comprise:                                            
Cash and short term deposits                                 167            -  
Bank overdrafts                                           (2,817)      (1,780) 
                                                         ---------    ---------
                                                          (2,650)      (1,780) 
                                                         =========    =========

 


                                      NOTES
                                        
1. Segment information

Primary reporting format - business segments

The following tables present revenue and profit and certain asset and liability
information regarding the Group's business segments for the years ended 30 June
2006 and 2005.

Segment revenue represents revenue from external customers arising from the sale
of goods, plus inter-segment revenue. Inter-segment transactions are priced on
an arm's length basis.

The type of products sold by each segment are detailed in the Chief Executive's
Review.

Segment results, assets and liabilities include items directly attributable to a
segment as well as those that can be allocated on a reasonable basis.

Unallocated assets comprise deferred tax assets and corporate assets that cannot
be allocated on a reasonable basis to a business segment.

Unallocated liabilities comprise borrowings, employee benefit obligations,
deferred tax liabilities, income tax payable and corporate liabilities that
cannot be allocated on a reasonable basis to a business segment.

 
Analysis by business segment 2006 
                                                                                   
                           Engineering products                                                                      
               Building   Precision    Industrial                 Continuing   Discontinued                    2006  
               products   components    products    Elimination   operations    operations    Elimination     Total  
                  £'000        £'000        £'000         £'000        £'000          £'000         £'000     £'000  
Sales to                                                                                                             
external                                                                                                             
customers        55,529       28,587       48,590             -      132,706          1,658             -   134,364  
Inter-segment                                                                                                        
revenue              50        1,554        1,300        (2,904)           -            304          (304)        -  
                   ------      -------       ------       -------       ------       --------       -------   -------
                 55,579       30,141       49,890        (2,904)     132,706          1,962          (304)  134,364  
                   ======      =======       ======       =======       ======       ========       =======   =======
                                                                                                                     
Segment result    6,432        1,991          547                      8,970         (2,225)                  6,745  
Share of                                                                                                             
post-tax                                                                                                             
profit of                                                                                                            
associate            23            -            -                         23              -                      23  
                   ------      -------       ------       -------       ------       --------       -------   -------
                  6,455        1,991          547                      8,993         (2,225)                  6,768  
Profit on                                                                                                            
fixed asset                                                                                                          
disposals                                                                242              -                     242  
Finance                                                                                                              
revenue                                                                   22              -                      22  
Finance                                                                 (568)             -                    (568) 
costs                                                                                                                
Other finance                                                                                                        
expense -                                                                                                            
pensions                                                                (786)             -                    (786) 
                                                                        ------       --------                 -------
                                                                                     --------                 -------
Profit before                                                                                                        
tax                                                                    7,903         (2,225)                  5,678  
Tax                                                                   (2,408)           674                  (1,734) 
                                                                        ------       --------                 -------
Profit after                                                                                                         
tax                                                                    5,495         (1,551)                  3,944  
                                                                        ======       ========                 =======
Segment assets   28,307       23,765       22,664                     74,736            297                  75,033  
Unallocated                                                                                                          
assets                                                                13,047                                 13,047  
Equity                                                                                                               
accounted                                                                                                            
investments         273            -            -                        273                                    273  
                                                                        ------                                -------
Total Group                                                                                                          
assets                                                                88,056                                 88,353  
                                                                                                                     
Segment                                                                                                              
liabilities     (12,283)      (6,313)     (13,469)                   (32,065)          (193)                (32,258) 
Unallocated                                                                                                          
liabilities                                                          (31,776)                               (31,776) 
                                                                        ------                                -------
Total Group                                                                                                          
liabilities                                                          (63,841)                               (64,034) 
Other segment                                                                                                        
information                                                                                                          
Capital                                                                                                              
expenditure:                                                                                                         
Property,                                                                                                            
plant and                                                                                                            
equipment         2,549        2,131          273                      4,953              -                   4,953  
Other                                                                                                                
intangible                                                                                                           
assets              386            3            1                        390              -                     390  
Depreciation        977        1,721          383                      3,081             79                   3,160  
Amortisation                                                                                                         
of intangible                                                                                                        
assets               98           23           18                        139              3                     142  



 
Analysis by business segment 2005
                                                                                    
                          Engineering products                                                                       
               Building   Precision    Industrial                 Continuing   Discontinued                    2005  
               products   components   products     Elimination   operations   operations     Elimination     Total  
                  £'000        £'000        £'000         £'000        £'000          £'000         £'000     £'000  
                                                                                                                     
Sales to                                                                                                             
external                                                                                                             
customers        48,674       27,449       38,746             -      114,869          6,728             -   121,597  
Inter-segment                                                                                                        
revenue              20        1,320        1,452        (2,792)           -          1,624        (1,624)        -  
                   ------      -------       ------       -------       ------       --------       -------   -------
                 48,694       28,769       40,198        (2,792)     114,869          8,352        (1,624)  121,597  
                   ======      =======       ======       =======       ======       ========       =======   =======
                                                                                                                     
Segment result    6,008        2,064        1,197                      9,269         (3,239)                  6,030  
Loss on sale          -            -            -                          -           (824)                   (824) 
Share of post                                                                                                        
tax profit of                                                                                                        
associate            24            -            -                         24              -                      24  
                   ------      -------       ------                     ------       --------                 -------
                  6,032        2,064        1,197                      9,293         (4,063)                  5,230  
Finance                                                                                                              
revenue                                                                   24              -                      24  
Finance                                                                 (419)             -                    (419) 
costs                                                                                                                
Other finance                                                                                                        
expense -                                                                                                            
pensions                                                              (1,201)             -                  (1,201) 
                                                                        ------       --------                 -------
Profit before                                                                                                        
tax                                                                    7,697         (4,063)                  3,634  
Tax                                                                   (2,586)         1,117                  (1,469) 
                                                                        ------       --------                 -------
Profit after                                                                                                         
tax                                                                    5,111         (2,946)                  2,165  
                                                                        ======       ========                 =======
                                                                                                                     
                                                                                                                     
Segment assets   26,611       20,101       16,902                     63,614          4,245                  67,859  
Unallocated                                                                                                          
assets                                                                15,363              -                  15,363  
Equity                                                                                                               
accounted                                                                                                            
investments         250            -            -                        250              -                     250  
                                                                        ------       --------                 -------
Total Group                                                                                                          
assets                                                                79.227              -                  83,472  
                                                                                                                     
Segment                                                                                                              
liabilities     (12,796)      (5,535)      (6,884)                   (25,215)        (1,090)                (26,305) 
Unallocated                                                                                                          
liabilities                                                          (36,165)                               (36,165) 
                                                                        ------                                -------
Total Group                                                                                                          
liabilities                                                          (61,380)                               (62,470) 
                                                                                                                     
Other segment                                                                                                        
information                                                                                                          
Capital                                                                                                              
expenditure:                                                                                                         
Property,                                                                                                            
plant and                                                                                                            
equipment           743        2,171          327                      3,241            270                   3,511  
Goodwill          5,506            -            -                      5,506              -                   5,506  
Other                                                                                                                
intangible                                                                                                           
assets              132            9           39                        180             20                     200  
Depreciation        894        1,656          482                      3,032            429                   3,461  
Amortisation                                                                                                         
of intangible                                                                                                        
assets              148           26           14                        188              6                     194  
Impairment                                                                                                           
losses                -            -            -                          -          1,040                   1,040  

 
 

Secondary reporting format - geographical segments
  
Analysis by geographical segment 2006                                                     
                                                                                          
                  United     Europe  Europe   Rest   Continuing   Discontinued     Total  
                              -        -      of                                          
                  Kingdom     EU       Non   World   operations    operations     Group   
                                      EU                                                  
                    £'000    £'000   £'000   £'000        £'000          £'000     £'000  
                                                                                          
Sales to                                                                                  
external                                                                                  
customers          95,535   23,975   6,443   6,753      132,706          1,658   134,364  
                     ======   ======  ======  ======     ========        =======   =======
                                                                                          
Segment assets     74,920                      113       75,033                   75,033  
Unallocated                                                                               
assets                                                   13,047                   13,047  
Equity                                                                                    
accounted                                                                                 
investments                    273                          273                      273  
                                                         --------                  -------
                                                         88,353                   88,353  
                                                         ========                  =======
Capital                                                                                   
expenditure:                                                                              
Property,                                                                                 
plant and                                                                                 
equipment           4,952                        1        4,953                    4,953  
Other                                                                                     
intangible                                                                                
assets                390                                   390                      390  
  
                                                                                        
Analysis by geographical segment 2005                                                     
                                                                                          
                  United    Europe   Europe  Rest    Continuing   Discontinued     Total  
                            -        -       of                                           
                  Kingdom   EU       Non     World   operations   operations      Group   
                                     EU                                                   
                    £'000    £'000   £'000   £'000        £'000          £'000     £'000  
                                                                                          
Sales to                                                                                  
external                                                                                  
customers          93,453   14,448   1,619   5,349      114,869          6,728   121,597  
                     ------   ------  ------  ------     --------        -------   -------
                                                                                          
Segment assets     67,831                       28       67,859                   67,859  
Unallocated                                                                               
assets                                                   15,363                   15,363  
Equity                                                                                    
accounted                                                                                 
investments                    250                          250                      250  
                                                         --------                  -------
                                                         83,472                   83,472  
                                                         ========                  =======
Capital                                                                                   
expenditure:                                                                              
Property,                                                                                 
plant and                                                                                 
equipment           3,511        -       -       -        3,511                    3,511  
Goodwill            5,506        -       -       -        5,506                    5,506  
Other                                                                                     
intangible                                                                                
assets                200        -       -       -          200                      200  
                                                                                          

 
Segment revenue by geographical segment represents revenue from external
customers based upon the geographical location of the customer. Revenue from 
discontinued operations relates substantially to the United Kingdom. The 
analyses of segment assets and capital expenditure are based upon location of 
the assets.

 
 
2. Dividends                                                                    
                                                          2006            2005  
                                                         £'000           £'000  
                                                                                
Interim dividend for 2006 of 3.0p paid on 6              1,052               -  
April 2006                                                                      
Final dividend for 2005 of 6.3p paid on 28               2,219               -  
October 2005                                                                    
Interim dividend for 2005 of 3.0p paid on 6                  -           1,063  
April 2005                                                                      
Final dividend for 2004 of 6.3p paid on 29                   -           2,185  
October 2004                                         -----------     -----------
                                                         3,271           3,248  
                                                     -----------     -----------
 
A final dividend per equity share of 6.3p has been proposed for 2006, payable on
2 November 2006. In accordance with IFRS accounting requirements, this dividend 
has not been accrued in these consolidated financial statements.
 

3. Earnings per share

Basic earnings per share is calculated by dividing the net profit for the period
attributable to ordinary equity shareholders of the parent by the weighted 
average number of ordinary shares in issue during the period.

Diluted earnings per share is calculated by dividing the net profit attributable
to ordinary equity shareholders of the parent by the weighted average number of
ordinary shares in issue during the period, after allowing for the exercise of
outstanding share options.

The following sets out the income and share data used in the basic and diluted
earnings per share calculations:

 
                                                               2006      2005  
                                                              £'000     £'000  
                                                                               
Net profit attributable to equity holders of the parent -                      
continuing operations                                         5,479     5,111  
Loss attributable to equity holders of the parent -                            
discontinued operations                                      (1,551)   (2,946) 
                                                             --------  --------
Net profit attributable to equity holders of the parent       3,928     2,165  
                                                                               
                                                               000s      000s     
                                                                               
Basic weighted average number of shares                      35,291    35,040  
Dilutive potential ordinary shares - employee share options      59       146  
                                                             --------  --------
                                                             35,350    35,186  
                                                             --------  --------
                                                                               
4. Income tax costs

 
                                                               2006      2005  
                                                              £'000     £'000  
                                                                               
Total current tax                                             1,094     1,248  
Total deferred tax                                              640       221  
                                                              -------   -------
Tax charge in the income statement                            1,734     1,469  
                                                              =======   =======
                                                                               
The tax charge in the income statement is disclosed as                         
follows:                                                                       
Income tax expense on continuing activities                   2,408     2,586  
Income tax credit on discontinued activities                   (674)   (1,117) 
                                                              -------   -------
                                                              1,734     1,469  
                                                              =======   =======


5. Reconciliation of movements in equity 

 
                                            Capital     Capital                                            
              Share     Share     Other    redemption   reserve   Hedging   Retained   Minority     Total  
             capital   premium   reserve    reserve        own    reserve   earnings   interests   equity  
                                                        shares                                             
               £'000     £'000     £'000        £'000     £'000     £'000      £'000       £'000    £'000  
                                                                                                           
At 1 July      4,352    26,909     1,727          693      (164)        -    (12,654)         28   20,891  
2004                                                                                                       
Shares            57       478         -            -         -         -          -           -      535  
issued                                                                                                     
Excess                                                                                                     
depreciation                                                                                               
on                                                                                                         
previously                                                                                                 
revalued                                                                                                   
assets             -         -      (150)           -         -         -        150           -        -  
Released on                                                                                                
disposal of                                                                                                
property           -         -       (26)           -         -         -         26           -        -  
Vesting of                                                                                                 
own                -         -         -            -        82         -        (82)          -        -  
shares                                                                                                     
Increase in                                                                                                
capital                                                                                                    
reserve -                                                                                                  
own                -         -         -            -       (83)        -          -           -      (83) 
shares                                                                                                     
Actuarial                                                                                                  
gain on                                                                                                    
defined                                                                                                    
benefit                                                                                                    
pensions net                                                                                               
of tax             -         -         -            -         -         -        673           -      673  
Dividends          -         -         -            -         -         -     (3,248)          -   (3,248) 
Profit for                                                                                                 
the                -         -         -            -         -         -      2,165           -    2,165  
period                                                                                                     
Share based                                                                                                
payments           -         -         -            -         -         -         69           -       69  
                                                                                                           
                ------    ------    ------      -------  --------    ------     ------      ------   ------
At 1 July      4,409    27,387     1,551          693      (165)        -    (12,901)         28   21,002  
2005                                                                                                       
Shares             3        19         -            -         -         -          -           -       22  
issued                                                                                                     
Excess                                                                                                     
depreciation                                                                                               
on                                                                                                         
previously                                                                                                 
revalued                                                                                                   
assets             -         -      (150)           -         -         -        150           -        -  
Net gains on                                                                                               
cash flow                                                                                                  
hedges             -         -         -            -         -         1          -           -        1  
Vesting of                                                                                                 
own                -         -         -            -        32         -        (32)          -        -  
shares                                                                                                     
Actuarial                                                                                                  
gain on                                                                                                    
defined                                                                                                    
benefit                                                                                                    
pensions net                                                                                               
of tax             -         -         -            -         -         -      2,649           -    2,649  
Dividends          -         -         -            -         -         -     (3,271)        (10)  (3,281) 
Profit for                                                                                                 
the                -         -         -            -         -         -      3,928          16    3,944  
period                                                                                                     
Share based                                                                                                
payments           -         -         -            -         -         -        (18)          -      (18) 
                                                                                                           
                ------    ------    ------      -------  --------    ------     ------      ------   ------
At 30 June                                                                                                 
2006           4,412    27,406     1,401          693      (133)        1     (9,495)         34   24,319  
                ------    ------    ------      -------  --------    ------     ------      ------   ------

 

Share capital and share premium

The balances classified as share capital and share premium are the proceeds of
the nominal value and premium value respectively on issue of the Company's
equity share capital.

Other reserve

The other reserve is an asset revaluation reserve which was used in previous
years to record increases in the fair value of land and buildings, and decreases
to the extent that such decrease relates to an increase on the same asset
previously recognised in equity.

Capital redemption reserve

The capital redemption reserve is a non-distributable reserve.

Capital reserve own shares

The capital reserve own shares relates to 91,000 (2005: 116,000) ordinary own
shares held by the parent company.
The market value of shares at 30 June 2006 was £138,000, (2005: £177,000).
These are held to help satisfy the exercise of awards under the Company's Long
Term Incentive Plan.
A Trust holds the shares in its name and shares are awarded to employees on
request by the Company. The Company bears the expenses of the Trust.

Hedging reserve

This reserve records the portion of the gain or loss on a hedging instrument in
a cash flow hedge that is determined to be an effective hedge. 
 

6 Change of accounting policy

From 1 July 2005 the Group has adopted IAS 32 - Financial Instruments:
Presentation and IAS 39 - Financial Instruments: Recognition and Measurement.

From 1 July 2005 derivative financial instruments are initially recognised at
fair value on the date on which a derivative contract is entered into and are
subsequently re-measured at fair value. The gain or loss on re-measurement to
fair value is recognised immediately in profit or loss. However where
derivatives qualify for hedge accounting recognition of any resultant gain or
loss depends on the nature of the item being hedged.

The fair value of forward currency contracts is calculated by reference to
current forward exchange rates for contracts with similar maturity profiles.

For the purpose of hedge accounting, the hedges used by the Group are classified
as:

-          Fair value hedges when hedging the exposure to changes in the fair
value of a recognised asset or liability or firm commitment; or

-          Cash flow hedges when hedging exposure to variability in cash flows
that is either attributable to a particular risk associated with a recognised
asset or liability or a highly probable forecast transaction.

As permitted under IFRS 1, First Time Adoption of International Financial
Reporting Standards, the Group has elected not to restate comparative
information for the Financial Instruments Standards IAS 32 and IAS 39.
 

7 Post balance sheet events

The Group disposed of its investment in its associate, Xiloform Profili srl, in
August 2006 for gross proceeds of £335,000, a value in excess of its carrying
value.
  

8 Audited Accounts

The above financial information is derived from the statutory accounts for the
years ended 30 June 2006 and 30 June 2005, on both of which the auditors have
issued an unqualified opinion.

This is the first year in which the Group has prepared its financial statements
under IFRS. The comparatives have been restated from UK Generally Accepted
Accounting Practice (UK GAAP) to comply with IFRS. The impact of this
restatement is available as a separate document to be viewed on
www.alumasc.co.uk

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 2005 have been filed with the Registrar
of Companies and the accounts for the year ended 30 June 2006 will be filed in
due course.

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



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