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Alumasc Group Plc (ALU)

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Tuesday 20 February, 2001

Alumasc Group Plc

Interim Results

Alumasc Group PLC
20 February 2001

                   THE ALUMASC GROUP plc - INTERIM RESULTS

  * Alumasc, the high specification engineering and building products group,
    announces a pre-tax profit of £1.7 m (99/00:  £5.1 m) on a continuing
    turnover of  £58.2 m (99/00:  £62.8 m) - a disappointing performance
    following the improvement achieved in the previous year, but consistent
    with the AGM statement of 20 October 2000.

  * Engineering Products achieved an operating profit of £1.5 m (99/00:£3.1
    m) on a turnover of £41.0 m (99/00:  £44.4 m),  with a £1 m adverse profit
    impact from both the restructuring of Rover and the decline in business
    from the UK brewing industry.  The resumption of production at Longbridge
    and significant new business won in the period give an expectation of
    second half recovery.

  * Building Products made an operating profit of £0.6 m (99/00:  £2.1 m) on
    a turnover of £17.2 m (99/00:  £18.3 m), reflecting competitive conditions
    and exceptionally poor weather.  The rising levels of quotations and
    specifications won provide hopeful signs for an improved second half
    performance.

  * On 1 February 2001, Alumasc announced the appointment of Paul Hooper to
    the new post of Group Managing Director with primary responsibility for
    the Group's operations from April 2001.

  * Following strategic reviews undertaken during the period, the Board has
    committed to a major expansion  of Alumasc Precision Limited aimed at
    doubling its business in the medium term.

  * A review of the Group's Building Products activities confirms, in the
    Board's view, an opportunity to develop the excellent brands which have
    been grown in conjunction with its premium product ranges.

  * The Board maintains an active policy for the purchase of the Company's
    shares.

  * John McCall, Chairman & Chief Executive, stated 'The causes underlying
    the poor H1 performance are in contrast with the improving trend of the
    previous period and our current view that emerging market conditions
    should lead to a trading recovery in H2.  In these circumstances, the
    directors have declared an interim dividend of 2.45 p per share, unchanged
    from the previous year'.

Enquiries:

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

Bankside Consultants Limited                                    020-72 20 74 77 
  Charles Ponsonby


                            THE ALUMASC GROUP PLC

                             CHAIRMAN'S STATEMENT

Trading

It was apparent from trading during the first quarter of this financial year
that the half year would be very difficult for Alumasc.  I issued a statement
to this effect at the Annual General Meeting held on 20 October, drawing
particular attention to the contrast with the closing quarter of the previous
year, when the Group's performance was strong.

In the event, the Group earned profits before tax of £1.7 million compared
with £5.1 million in the previous year, on turnover £4.6 million lower at £
58.2 million - a disappointing performance, particularly given the improvement
achieved in the previous year.

A number of the issues underlying this performance were set out in the
preliminary announcement of 5 September 2000 and the October statement.  These
included the fact that the closure of Rover's Longbridge plant during the
restructuring of that business would have a significant impact on turnover and
profits until such time as the production of Rover cars recommenced and new
business was obtained to replace the permanent down-sizing of our largest
customer.  These events have occurred much as anticipated with a profit impact
of around £1 million in the period.  Production has now recommenced at
Longbridge and, significantly, Alumasc Precision has been winning new business
from major customers including Filtronic in the telecommunications sector, and
global systems manufacturers such as Denso Marston and Garretts.  Alumasc
Precision is one of only eight UK component suppliers to BMW's recently opened
Hams Hall engine plant near Birmingham.  This provides encouragement for an
improved second half and the prospects for expanding the Group's core
precision component business remain positive and provide a solid block in the
Group's ongoing strategy.

The decline in business available from the UK brewing industry (which in the
last full year generated turnover of some £17 million) was severe, reducing
profits earned by approximately £1 million in the half year, the period when
historically the major proportion of profit is earned from this sector.  The
extent to which this decline reflects the uncertainties associated with
takeover activity in the sector - particularly the OFT investigation of the
Interbrew purchase of the brewing interests of Whitbread and Bass - is
difficult to assess.  However the rationalisation of the industry is likely to
result in a significant proportion of this decline being permanent.  The
progress achieved by the businesses within our Group, which depend on the
brewing industry for their living, in reducing costs and developing new
products has been unable to match this sudden decline in demand.

The Group's building products activities earned profits £1.5 million lower at
£0.6 million, reflecting both lower turnover and lower margins.  The results
were impacted by trading losses of £0.3 million in a satellite operation which
remains to be sold following the disposal of Corofil Woodall, its parent
company, during the previous year.  Most of the turnover decline of £1.2
million can be attributed to the exceptional weather conditions prevailing
during the Autumn months which have had a serious effect on all external
building trades in the UK.  The squeeze on margins is a reflection of the
universally competitive conditions in which we operate and the conscious
investment that has been made by each of our building products activities to
counter this pressure and resume market growth.    The rising level of
enquiries, quotations and specifications in our building products division
provides hopeful signs of a recovery in trading volumes in the second half
year.  This coupled with actions to reduce costs and modest opportunities for
price improvements gives an expectation of an improved trading performance in
the current period.

Leonardo, the Group's 55 per cent owned building products internet search
engine, continues to earn modest revenues and is currently being redesigned
prior to marketing a wider range of web services.

Appointments

On 1 February 2001, Alumasc announced the appointment to the Board of two
executive directors.  In line with previously announced plans, Paul Hooper
will join the Group in April in the new role of Group Managing Director with
primary responsibility for the Group's operations.  Paul's recent career
included senior positions within BTR plc, Williams Holdings plc and Rexam plc,
and I warmly welcome him on your behalf.

Martin Rhodes has played an important role as Managing Director of Alumasc
Precision Limited and joins the Board to give impetus to the expansion of that
core business in line with its excellent prospects.

Development

Following a detailed strategic review during the period, the Board has
committed to a major expansion programme for Alumasc Precision Limited, aimed
at doubling the business in the medium term.  While expected to span a number
of years, the exact timing of this programme will depend on the pace at which
the commercial opportunities which have been identified proceed in practice.
Investment by the Group will similarly take place project by project, while
engineering capabilities continue to be developed in parallel.  The Group will
finance this expansion from its existing resources, without recourse to
shareholders.

The review of the Group's building products activities has confirmed, in the
Board's view, the opportunity to develop the excellent brands which have been
grown in conjunction with its premium product ranges.  As a result, the search
for new products to fill and extend those ranges will continue.   As a
demonstration of this, Alumasc acquired Forrest Maughan, the Leeds-based
standing seam roofing business, for £0.25 million on 5 February 2001,
extending the product family in Alumasc Exterior Building Products into a
growth sector.

The Board continues to adopt an active policy for the purchase of the Group's
shares within the authority granted at the Annual General Meeting held in
October.  During the 6 months to December 2000, 2.55 million shares were
bought, equivalent to 6.5 per cent of the issued share capital at 30 June
2000, at an average price of £1.39 per share.

Dividend and prospects

The causes underlying the poor first half performance are in contrast with the
improving trend of the previous period and our current view that emerging
market conditions should lead to a trading recovery in the second half.  In
these circumstances, the directors have declared an interim dividend of 2.45p
per share, unchanged from the previous year, which will be payable on 9 April
2001 to shareholders on the register at close of business on 9 March 2001.

J S McCall
Chairman and Chief Executive                           20 February 2001


                     UNAUDITED CONSOLIDATED BALANCE SHEET

                             at 31 December 2000

                                                           31         31     30
                                                     December   December   June
                                                         2000       1999   2000
                                                         £000       £000   £000

Fixed assets

Intangible assets                                         347         86    356
Tangible assets                                        28,642     30,374 28,490
Investments                                               462        891    451
                                                       ______     ______ ______
                                                       29,451     31,351 29,297

Current assets

Stocks                                                 11,940     11,961 11,744
Debtors                                                25,197     30,959 28,821
Cash at bank                                                -          -  5,623
                                                       ______     ______ ______
                                                       37,137     42,920 46,188

Creditors:  amounts falling due within one year
Trade and other creditors                              24,973     28,054 28,527
Taxation                                                1,564      3,016  1,899
Proposed dividend                                         892        965  2,358
                                                       ______     ______ ______
                                                       27,429     32,035 32,784
Net current assets                                      9,708     10,885 13,404


Total assets less current liabilities                  39,159     42,236 42,701


Creditors: amounts falling due after more than one      3,187      3,141  3,433
year

Provisions for liabilities and charges                    170        258    228


Equity minority interest                                  187          5    224

                                                       ______     ______ ______
Net assets                                             35,615     38,832 38,816

Capital and reserves

Called up share capital                                 4,570      4,983  4,889
Share premium                                          26,907     26,907 26,907
Revaluation reserve                                     2,271      2,374  2,271
Capital redemption reserve                                475         62    156
Profit and loss account                                 1,392      4,506  4,593
                                                       ______     ______ ______
Shareholders' funds (note 6)                           35,615     38,832 38,816


                UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT

                    for the half year to 31 December 2000

         31 December        31 December                        30 June
             2000              1999                             2000
              £000 Continuing Discontinued       Continuing Discontinued
                   activities   activities       activities   activities
                                            Total                          Total
                         £000         £000   £000      £000         £000    £000
Turnover    58,178     62,760        5,506 68,266   127,638        8,402 136,040
             _____      _____        _____  _____     _____        _____   _____
Operating    1,756      5,169            2  5,171    10,221           53  10,274
profit

Share of        33         31            -     31       111            -     111
operating
profit in
associates

Profit on        -          -            -      -         -          426     426
sale of
business
activities

Interest       (83)      (147)           -   (147)     (271)           -   (271)

             _____      _____        _____  _____      _____        _____ _____

Profit on
ordinary
activities   1,706      5,053            2  5,055    10,061          479  10,540
before
taxation

Taxation       512      1,314            -  1,314     2,746          211   2,957
charge

             _____      _____        _____  _____     _____        _____   _____

Profit on
ordinary
activities   1,194      3,739            2  3,741     7,315          268   7,583
after
taxation

Equity          37          9            -      9       145            -     145
minority
interest

             _____      _____        _____  _____     _____        _____   _____

Profit for
the
financial
period
attributable
to the
members of   1,231      3,748            2  3,750     7,460          268   7,728
the parent
company

Dividends      892        965            -    965     3,323            -   3,323

             _____      _____        _____  _____     _____        _____   _____

Retained
profit for
the            339      2,783            2  2,785     4,137          268   4,405
financial
period

             _____      _____        _____  _____     _____        _____   _____

Earnings per
share and
diluted
earnings per
share         3.2p       9.3p            -   9.3p     18.6p         0.7p   19.3p
(note 2)

Dividend per
share (note 3)           
             2.45p                          2.45p                           8.5p


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 £1,231,000 for the half year to 31 December
2000 (£3,750,000 for the half year to December 1999 and £7,728,000 for the
year to 30 June 2000).


                  UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

                    for the half year to 31 December 2000

                                                   Half Year  Half Year    Year
                                                          31         31 30 June
                                                    December   December    2000
                                                        2000       1999    £000
                                                        £000       £000

Cash flow from operating activities  +                2,207      1,291  10,213

Returns on investments and servicing of finance

Net interest                                            (83)      (147)   (271)
Taxation

UK corporation tax (paid)/received                     (825)        206 (1,951)
Capital expenditure and financial investment

Purchase of tangible fixed assets                    (2,215)    (2,028) (3,919)
Proceeds from sale of tangible fixed assets             470        153     149
Proceeds from sale of investments                         -          -     441
                                                       _____      _____   _____
                                                     (1,745)    (1,875) (3,329)
Acquisitions and disposals

Proceeds from sale of business activities                  -      2,293   4,604
Purchase of subsidiary undertaking                         -          -    (802)
Net cash acquired with subsidiary undertaking              -          -     750
                                                       _____      _____   _____

                                                           -      2,293   4,552

                                                       _____      _____   _____

Equity dividends paid                                (2,358)    (2,440) (3,405)

Financing

Issue of ordinary share capital                           -         18      18

Repurchase of ordinary share capital                 (3,540)      (562)   (562)
Repayment of debt                                      (477)       (82)   (163)
                                                       _____      _____   _____
                                                     (4,017)      (626)   (707)
                                                       _____      _____   _____

(Decrease)/increase in cash in the period (note 5)   (6,821)    (1,298)  5,102


+ Reconciliation of operating profit to net cash
inflow from operating activities

Operating profit                                       1,756      5,171  10,274
Depreciation                                           1,659      1,967   3,955
Amortisation of goodwill                                   9          -       5
Profit on disposal of tangible fixed assets/             (66)       (85)   (128)
investments
Increase in working capital                             (847)    (5,574) (3,277)
Warranty and other provisions                           (304)      (188)   (616)
                                                       _____      _____   _____
                                                       2,207      1,291  10,213
                                                       _____      _____   _____



                       NOTES TO THE UNAUDITED ACCOUNTS

                             at 31 December 2000


1.            BASIS OF PREPARATION

The interim financial statements for the half year ended 31 December 2000 have
been prepared in accordance with the accounting policies detailed in the 2000
Annual Report & Accounts.  The financial information for the year ended 30
June 2000 is an abridged version of the financial statements filed with the
Registrar of Companies, on which the auditors gave an unqualified report.  The
financial information for the half year ended 31 December 1999 is restated for
business activities discontinued in the six months to 30 June 2000.  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 38,101,476  (31 December 1999: 40,161,131; year
ended 30 June 2000: 40,008,259).

3.            DIVIDENDS

The directors have declared an interim dividend of 2.45p per share (1999:
2.45p) which will be paid on 9 April 2001 to shareholders on the register at
the close of business on 9 March 2001.

4.      TRADING

                         6 months to December 2000   6 months to December 1999
                           Turnover           Profit       Turnover      Profit
                               £000             £000           £000        £000
Engineering Products         40,981            1,460         44,437       3,128
Building Products            17,162              617         18,323       2,072
Leonardo                         35             (288)             -           -
                              _____             ____          _____        ____
                             58,178            1,789         62,760       5,200
Discontinued                      -                -          5,506           2
                              _____             ____          _____        ____
                             58,178            1,789         68,266       5,202
Interest                                         (83)                      (147)
                                                ____                       ____
Profit before tax                              1,706                      5,055


5.             REPURCHASE OF SHARES FOR CANCELLATION


                                        Half Year         Half Year        Year
                                      31 December       31 December     30 June
                                             2000              1999        2000
                                              000               000         000

            Shares (number)                 2,555               500       1,250
            Value (£)                       3,540               562       1,387


6.         RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET (DEBT)/CASH

                                                      Half Year Half Year  Year
                                                             31        31    30
                                                       December  December  June
                                                           2000      1999  2000
                                                           £000      £000  £000

      (Decrease)/increase in cash in period              (6,821)  (1,297) 5,102

      Cash outflow from decrease in debt and lease
      financing
                                                            477      119    163
                                                          _____     _____ _____
       Change in net debt resulting from cash flows      (6,344)  (1,178) 5,265
       Surrender of loan notes for non-cash                   -        -    263
       consideration

                                                          _____     _____ _____
       Movement in net debt in the period               (6,344)   (1,178) 5,528

       Net cash/(debt) at start of period                4,839      (689)  (689)

                                                          _____     _____ _____
       Net (debt)/cash at end of period                 (1,505)   (1,867) 4,839
                                                          _____     _____ _____



7.    RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
                                               Half Year Half Year   Year
                                                      31        31     30
                                                December  December   June
                                                    2000      1999   2000
                                                    £000      £000   £000

        Retained profit for the financial            339     2,785  4,405
period
        Repurchase of shares                     (3,540)      (562)(1,387)
        New share capital                             -         19     18
        Exchange difference                           -        (3)   (11)
        Goodwill written back                         -         -   (803)
                                                   _____     _____  _____

        Net (reduction in)/addition to           (3,201)    2,239  2,222
shareholders' funds

        Opening shareholders' funds              38,816    36,594 36,594

                                                  _____     _____  _____
        Closing shareholders' funds              35,615    38,833 38,816

                                                  _____     _____  _____

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