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Alumasc Group Plc (ALU)

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Tuesday 22 February, 2000

Alumasc Group Plc

Interim Results - 6 Months to December 1999

Alumasc Group PLC
22 February 2000



            THE ALUMASC GROUP plc - INTERIM RESULTS
                               
*    Alumasc,  the  premium engineering and building  products
     group, announces that profit before tax for the half year
     to  31  December 1999 of £5.1 million compared with  £3.9
     million for the same period in the previous year and were
     £0.5  million (11.1%) ahead of the comparable figure  for
     continuing businesses, with turnover 1.4% higher at £65.6
     million.

*    Earnings per share were 9.3p compared with 7.0p (8.3p for
     the continuing business) for the first half of last year.

*    The  Engineering Products Division achieved a profit  for
     the  continuing  business down 6.8% at £3,133,000  (1998:
     £3,361,000)  on  turnover of £44.4 million  (1998:  £42.1
     million).  Within Engineering Products, Alumasc Precision
     Components,  the  Group's  diecasting  specialist,   grew
     strongly   despite   the  further  surge   in   sterling,
     benefiting  from  projects coming on stream  as  planned.
     The  group's  Industrial Products  businesses  had  mixed
     results,  however,  which were lower overall  on  reduced
     volume and tighter margins.

*    Building  Products reported a profit  up  25.4%  for  the
     continuing business at £2,069,000 (1998: £1,650,000) on a
     turnover   of   £21.2  million  (1998:  £22.6   million),
     benefiting from the restructuring of the previous year.

*    Net  borrowings  at  31  December 1999  of  £1.9  million
     (gearing  at  5%)  compare  favourably  with £6.5
     million at the same stage in the previous year.

*    The  programme to restructure the Group, which  dominated
     the  previous  financial year, was concluded  during  the
     period with disposals at Arnold Plastics, Crew Stainless,
     Thermex   Industries  and  SPF  Engineering.   This   has
     established  Alumasc  as  a  group  of  fewer,   stronger
     businesses  with  greater focus, enabling  management  to
     redirect their efforts on capturing the opportunities  to
     grow their businesses.

*    The  Board  now seeks to grow the Group by way  of  three
     related routes:  organic growth, building on the strength
     of  the Group's restructured business platform; utilising
     the  Group's ungeared balance sheet to finance investment
     opportunities  which leverage its market  strengths;  and
     exploiting  the  Internet  revolution,  both   with   the
     development  of e-commerce to assist organic  growth  and
     through   the   development  of  a  standalone   Internet
     operation.

*    In   pursuit  of  the  latter  opportunities,  the  Board
     announced  on  15  February 2000  a  joint  venture  with
     McDermott  Publishing aimed at developing  LeonardoUK.com
     into the UK's leading building industry search engine.

*    John   McCall,   Chairman,   stated   'The   satisfactory
     performance  for  the first half was achieved  by  strong
     performances  from  the Group's restructured  businesses.
     While each of our businesses faces significant challenges
     and  opportunities  in  common  with  all  UK  industrial
     companies,  we  believe we are better  placed  to  manage
     these  than  for a number of years.  With no  significant
     changes  in  the immediate outlook for our  markets,  the
     Board  views  the  management's  task  of  growing  their
     business as an equally real aspiration.'

An analyst presentation will be held at Bankside Consultants,
123 Cannon Street, London EC4
at 9.30 am today.
                               
Enquiries:

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

Bankside Consultants Limited                     0171-220 7477
  Charles Ponsonby


                     CHAIRMAN'S STATEMENT

OVERVIEW
The group's profit before tax for the half year to 31 December
1999  was £5.1 million compared with £3.9 million for the same
period in the previous year.  Profits earned by the continuing
business  were  £0.5  million (11.1 per  cent)  ahead  of  the
comparable figure, with turnover 1.4 per cent higher at  £65.6
million.  Earnings per share of 9.3p compared with 7.0p  (8.3p
for the continuing business) in the first half of last year.

The   profit   growth  was  generated  by   those   businesses
restructured  during  the  previous year,  with  the  Building
Products  division  strongly  ahead  as  a  whole.   The   re-
structuring  programme, which commenced  during  the  previous
financial  year, was concluded during the period  as  expected
and no further charges were incurred.

The  directors have declared an unchanged interim dividend  of
2.45p  per  share which will be payable on 10  April  2000  to
shareholders on the register at close of business on 10  March
2000.


TRADING
                6 months to December              6 months to
                                1999            December 1998
                                                             
                  Turnover    Profit       Turnover    Profit
                      £000      £000          £000       £000
Engineering         44,437     3,133        42,120      3,361
Products
Building            21,211     2,069        22,616      1,650
Products
                    ------    ------        ------     ------
                    65,648     5,202        64,736      5,011
Discontinued         2,618         -        11,866      (688)
                    ------    ------        ------     ------
                    68,266     5,202        76,602      4,323
                    ======                  ======           
Interest                       (147)                    (235)
Exceptional                        -                    (228)
costs
                              ------                   ------
Profit before                  5,055                    3,860
tax
                              ======                   ======

Within  Engineering Products, Alumasc Precision,  the  group's
diecasting  specialists,  grew strongly  despite  the  further
surge  in  sterling,  benefiting from new projects  coming  on
stream   as   planned.   Alumasc  Precision   Components   was
successful  in achieving the prestigious German  'Verband  der
Automobilindustrie' accreditation during the period, the first
UK  diecasting group to have done so.  The group's  Industrial
Products  businesses  had mixed results, however,  which  were
lower overall on reduced volume and tighter margins.

The  group's Building Products activities were well  ahead  in
the  period, benefiting from the restructuring of the previous
year.   Growth  in  turnover was held back  by  the  continued
disruption of certain export markets, particularly in the  Far
East,  and  difficulties  incurred  on  a  major  new  systems
installation   which  led  to  a  period   of   poor   product
availability  and  service levels.  There are  some  signs  of
recovery  in Far Eastern demand, and the principal operational
problems arising from the new systems implementation have been
overcome.

FINANCIAL
The  group's net borrowings at 31 December 1999 rose  to  £1.9
million  (gearing  of  5 per cent) from £0.7  million  at  the
beginning  of  the  period and compare  favourably  with  £6.5
million  at the same point in the previous year.  The increase
in  borrowing regularly experienced in the group's first  half
year  was  reduced  by  the proceeds from  disposals  of  £2.3
million.   Interest  expense fell compared with  the  previous
year to £147,000, in line with the group's lower borrowings.

The  authority  given by shareholders at  the  Annual  General
Meeting  in October for the group to buy up to 10 per cent  of
its  issued  share capital was partially used by the  purchase
(and  subsequent  cancellation) of 500,000  shares  (1.25  per
cent) on 21 October 1999 at a price of 112.5p per share.   The
Board  will continue to monitor the performance of the group's
shares in considering whether to make further purchases.

RESTRUCTURING
The  programme  to restructure the group, which dominated  the
previous financial year, was concluded during the period to 31
December  1999  with  the disposals of Arnold  Plastics,  Crew
Stainless, Thermex Industries and SPF Engineering.   This  has
re-established   Alumasc  as  a  group  of   fewer,   stronger
businesses with greater focus, enabling management to redirect
their  efforts  on capturing the opportunities to  grow  their
businesses.

DEVELOPMENT
The  board now seeks to grow the group by way of three related
routes:

*    organic  growth, building on the strengths of the group's
     restructured business platforms;

*    utilising  the group's ungeared balance sheet to  finance
     investment   opportunities  which  leverage  its   market
     strengths;

*    exploiting  the  internet revolution,  both  through  the
     development  of E-commerce to assist organic  growth  and
     through   the   development  of  a  standalone   internet
     operation.
     
In  pursuit of the latter opportunity, the board announced  on
15  February  2000  a joint venture with McDermott  Publishing
aimed  at  developing  LeonardoUK.com into  the  UK's  leading
building industry search engine.

PROSPECTS
The satisfactory performance in the first half was achieved by
strong  performances from the group's restructured businesses.
While each of our businesses faces significant challenges  and
opportunities  in common with all UK industrial companies,  we
believe we are better placed to manage these than for a number
of years.

With  no significant changes in the immediate outlook for  our
markets,  the  Board views management's task of growing  their
business as an equally real aspiration.


UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the half year to 31 December 1999


                                Half year to 31 December 1999
                                     Contin   Discont
                                       uing     inued
                                 activities activities   Total
                                       £000      £000     £000

Turnover                             65,648     2,618   68,266
                                     ======    ======   ======

Operating profit after exceptional
costs (note 4)                        5,171         -    5,171

Share of operating profit in associates  31         -       31
Loss on sale of business activities
(note 4)                                  -         -        -
Interest                              (147)         -    (147)
                                     ------    ------   ------
Profit on ordinary activities before
taxation                              5,055         -    5,055

Taxation charge                       1,314         -    1,314
                                     ------    ------   ------
Profit on ordinary activities after
taxation                              3,741         -    3,741

Equity minority interest                  9         -        9
                                     ------    ------   ------
Profit for the financial period
attributable to the members of the
parent company                        3,750         -    3,750
Dividends                               965         -      965
                                     ------    ------   ------
Retained profit for the financial
period                                2,785         -    2,785
                                     ======    ======   ======

Earnings per share and diluted
earnings per share (note 2)            9.3p         -     9.3p
                                     ======    ======   ======

Dividend per share                                       2.45p
                                                        ======


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

There are no recognised gains or losses other than the profits
attributable to shareholders of the company of £3,750,000 for
the half year to 31 December 1999 (£2,832,000 for the half
year to December 1998 and £9,980,000 loss for the year to 30
June 1999).



UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the half year to 31 December 1999


           Comparative figures - half year to 31 December 1998
                                     Contin  Discont
                                       uing    inued
                                 activities activities   Total
                                       £000      £000     £000

Turnover                             64,736    11,866   76,602
                                     ======    ======   ======

Operating profit/(loss) after
exceptional costs (note 4)            4,714     (688)    4,026

Share of operating profit in
associates                               69         -       69
Loss on sale of business
activities (note 4)                       -         -        -
Interest                              (235)         -    (235)
                                     ------    ------   ------
Profit/(loss) on ordinary activities
before taxation                       4,548     (688)    3,860

Taxation charge/(credit)              1,190     (186)    1,004
                                     ------    ------   ------
Profit/(loss) on ordinary
activities after taxation             3,358     (502)    2,856

Equity minority interest               (24)         -     (24)
                                     ------    ------   ------
Profit/(loss) for the financial
period attributable to the members
of the parent company                 3,334     (502)    2,832
Dividends                               989         -      989
                                     ------    ------   ------
Retained profit/(loss) for the
financial period                      2,345     (502)    1,843
                                     ======    ======   ======

Earnings per share and diluted
earnings per share (note 2)            8.3p    (1.3p)     7.0p
                                     ======    ======   ======

Dividend per share                                       2.45p
                                                        ======


UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the half year to 31 December 1999


                    Comparative figures - year to 30 June 1999
                                     Contin   Discont
                                       uing     inued
                                 activities activities   Total
                                       £000      £000     £000

Turnover                            126,849    20,448  147,297
                                     ======    ======   ======

Operating profit/(loss) after
exceptional costs (note 4)            9,235  (11,540)  (2,305)
Share of operating profit in
associates                              100         -      100
Loss on sale of business
activities (note 4)                       -   (6,659)  (6,659)
Interest                              (453)         -    (453)
                                     ------    ------   ------
Profit/(loss) on ordinary
activities before taxation            8,882  (18,199)  (9,317)

Taxation charge/(credit)              2,132   (1,490)      642
                                     ------    ------   ------
Profit/(loss) on ordinary
activities after taxation             6,750  (16,709)  (9,959)

Equity minority interest               (21)         -     (21)
                                     ------    ------   ------
Profit/(loss) for the financial
period attributable to the members
of the parent company                 6,729  (16,709)  (9,980)
Dividends                             3,429         -    3,429
                                     ------    ------   ------
Retained profit/(loss) for the
financial period                      3,300  (16,709) (13,409)
                                     ======    ======   ======

Earnings per share and diluted
earnings per share (note 2)           16.7p   (41.4p)  (24.7p)
                                     ======    ======   ======

Dividend per share                                        8.5p
                                                        ======




UNAUDITED CONSOLIDATED BALANCE SHEET
at 31 December 1999

                                     31          31    30 June
                               December    December       1999
                                   1999        1998       £000
                                   £000        £000
                                                              
Fixed assets                                                  
Intangible assets                    86           -         88
Tangible assets                  30,374      38,485     32,204
Investments                         891         744        859
                                 ------      ------     ------
                                 31,351      39,229     33,151
                                 ------      ------     ------
Current assets                                                
Stocks                           11,961      16,653     12,662
Debtors                          30,959      32,137     28,755
Cash at bank                          -           -        521
                                 ------      ------     ------
                                 42,920      48,790     41,938
                                 ------      ------     ------
                                                              
Creditors:  amounts falling                                   
due within one year
Trade and other creditors        28,053      33,743     30,893
Taxation                          3,016       4,528      1,496
Proposed dividend                   965         989      2,440
                                 ------      ------     ------
                                 32,034      39,260     34,829
                                 ------      ------     ------
Net current assets               10,886       9,530      7,109
                                 ------      ------     ------
                                                              
Total assets less current        42,237      48,759     40,260
liabilities
                                                              
Creditors: amounts falling                                    
due after more than one year      3,141       4,225      3,349
                                                              
Provisions for liabilities          258         376        282
and charges
                                                              
Equity minority interest              5          38         35
                                 ------      ------     ------
                                 38,833      44,120     36,594
                                 ======      ======     ======
                                                              
Capital and reserves                                          
Called up share capital           4,983       5,059      5,043
Share premium                    26,908      26,875     26,891
Revaluation reserve               2,374       2,477      2,374
Capital redemption reserve           62           -          -
Profit and loss account           4,506       9,709      2,286
                                 ------      ------     ------
Shareholders' funds (note 6)     38,833      44,120     36,594
                                 ======      ======     ======



UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
for the half year to 31 December 1999

                               Half Year        Half       Year
                                      31        Year    30 June
                                December          31       1999
                                    1999    December       £000
                                    £000        1998
                                                £000
                                                       

Cash flow from operating           1,291       3,546     12,794
activities  *
                                  ------      ------     ------

Returns on investments and                                     
servicing of finance
Net interest                       (147)       (235)      (453)
                                  ------      ------     ------
Taxation                                                       
UK corporation tax                   206       (628)    (2,450)
received/(paid)
                                  ------      ------     ------
Capital expenditure and                                        
financial investment
Purchase of tangible fixed       (2,028)     (4,606)    (7,152)
assets
Proceeds from sale of                153         164      1,224
tangible fixed assets
                                  ------      ------     ------
                                 (1,875)     (4,442)    (5,928)
                                  ------      ------     ------
Acquisitions and disposals                                     
Proceeds from sale of              2,293           -      1,056
business activities
Purchase of investments                -        (13)      (205)
                                  ------      ------     ------
                                   2,293        (13)        851
                                  ------      ------     ------
Equity dividends paid            (2,440)     (2,439)    (3,428)
                                  ------      ------     ------
Financing                                                      
Issue of ordinary share               19          18         18
capital
Repurchase of shares               (562)           -          -
Repayment of debt                   (82)     (1,800)    (3,746)
                                  ------      ------     ------
                                   (625)     (1,782)    (3,728)
                                  ------      ------     ------
Decrease in cash in the          (1,297)     (5,993)    (2,342)
period (note 5)
                                  ======      ======     ======
                                                               
* Reconciliation of operating                                  
profit/(loss) to net cash
inflow from operating
activities
                                                               
Operating profit/(loss)            5,171       4,026    (2,305)
Write back of impaired                 -           -      2,695
goodwill
Depreciation                       1,967       2,236      4,631
Fixed asset impairment                 -           -      4,424
Profit on disposal of                                          
tangible fixed                      (85)        (39)      (339)
assets/investments
(Increase)/decrease in           (5,574)     (2,800)      4,664
working capital
Warranty and other provisions      (188)         123      (976)
                                  ------      ------     ------
                                   1,291       3,546     12,794
                                  ======      ======     ======

NOTES TO THE UNAUDITED ACCOUNTS
at 31 December 1999


1.   BASIS OF PREPARATION
     The  interim financial statements for the half year ended
     31  December  1999 have been prepared in accordance  with
     the  accounting  policies detailed  in  the  1999  Annual
     Report  &  Accounts.  The financial information  for  the
     year  ended  30 June 1999 is an abridged version  of  the
     financial   statements  filed  with  the   Registrar   of
     Companies,  on  which  the auditors gave  an  unqualified
     report,  as restated for business activities discontinued
     during  the six months to 31 December 1999.  The  interim
     report  is  being posted to shareholders and  copies  are
     available to the public at the registered office,  Burton
     Latimer, Kettering, Northamptonshire NN15 5JP.

2.   EARNINGS PER SHARE
     Earnings  per  share  is based on  the  weighted  average
     number  of  ordinary shares in issue for  the  period  of
     40,161,131 (31 December 1998  40,344,130; year  ended  30
     June 1999  40,345,477).

3.   DIVIDENDS
     The  directors have declared an interim dividend of 2.45p
     per  share (1998  2.45p) which will be paid on  10  April
     2000  to  shareholders on the register at  the  close  of
     business on 10 March 2000.

4.   EXCEPTIONAL AND DISCONTINUANCE COSTS

                               Half Year        Half       Year
                                      31        Year    30 June
                                December          31       1999
                                    1999    December       £000
                                    £000        1998
                                                £000
                                                               
Included in continuing                 -         228        552
operating profit
Included in discontinued               -           -     10,001
operating profit
Loss on sale of business               -           -      6,659
activities
                                  ------      ------     ------
                                       -         228     17,212

                                  ======      ======     ======
                                                               
Comprising:                                                    
Discontinuance costs                   -           -      8,941
Impairment/write off of                -           -      7,719
goodwill
Exceptional items:                                             
reorganisation costs included          -         228        552
in operating profit/(loss)
                                  ------      ------     ------
                                       -         228     17,212
                                  ======      ======     ======




NOTES TO THE UNAUDITED ACCOUNTS
at 31 December 1999



5. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                              Half Year        Half      Year
                                     31        Year   30 June
                               December          31      1999
                                   1999    December      £000
                                   £000        1998
                                               £000
                                                             
Decrease in cash in period      (1,297)     (5,993)   (2,342)
Cash outflow from decrease          119       1,606     3,734
in debt and lease financing
                                 ------      ------    ------
                                                             
Change in net debt resulting    (1,178)     (4,387)     1,392
from cash flows
Issue of loan notes for non-          -       (263)     (263)
cash consideration
                                 ------      ------    ------
                                                             
Movement in net debt in the     (1,178)     (4,650)     1,129
period
Net debt at start of period       (689)     (1,818)   (1,818)
                                 ------      ------    ------
Net debt at end of period       (1,867)     (6,468)     (689)
                                 ======      ======    ======
                                                             
6.    RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
                              Half Year        Half      Year
                                     31        Year   30 June
                               December          31      1999
                                   1999    December      £000
                                   £000        1998
                                               £000
                                                             
Retained profit/(loss) for        2,785       1,843   (13,409)
the financial period                                        
Repurchase of shares              (562)           -         -
New share capital                    19          18        18
Exchange difference                 (3)           -         7
Goodwill written back                 -           -     7,719
                                 ------      ------    ------
Net addition to/(reduction                                   
in) shareholders' funds           2,239       1,861   (5,665)
Opening shareholders' funds      36,594      42,259    42,259
                                 ------      ------    ------
                                                             
Closing shareholders' funds      38,833      44,120    36,594
                                 ======      ======    ======

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