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Alumasc Group Plc (ALU)

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Thursday 07 February, 2008

Alumasc Group Plc

Interim Results

Alumasc Group PLC
07 February 2008




Thursday 7 February 2008


                  THE ALUMASC GROUP PLC - INTERIM ANNOUNCEMENT

             "Board confident in Alumasc's ability to perform well"


Alumasc (ALU.L), which supplies premium building and engineering products,
announces an increase in adjusted1 pre-tax profit of almost 50% from continuing
operations in the half year to 31 December 2007.
Financial Highlights

   • Revenue from continuing operations, which include Levolux acquired last
     May, increased by 26% to £59.9m. Excluding the acquisition, revenue rose by
     7%, driven by strong growth in the Building Products division.
   • On continuing operations, including Levolux, the UK's leading supplier of
     solar shading systems for buildings, adjusted1 pre-tax profit increased by
     almost 50% to £4.5m and adjusted1 earnings per share were also nearly 50%
     ahead at 8.6p.
   • With Brock Metal, the producer of zinc and aluminium alloys sold in June
     2007, included in the prior period comparator, adjusted1 pre-tax profit
     increased by 24% and operating margins improved by 3.3 percentage points.
   • Group pre-tax profit of £5.2m was ahead by 45% and group earnings per
     share were 47% ahead at 10.3p.
   • The interim dividend per share is increased by 4.8% to 3.25p, covered 2.6
     times.
   • In the period, interest cover (on borrowings) exceeded nine times and
     gearing reduced to 35% from 40%.

Commercial Highlights

   • Building Products divisional revenue grew by 51% to £40.2m (up 16%,
     excluding Levolux) and adjusted1 operating profit increased by 75% to £4.8m
     (26% ahead, excluding Levolux).
   • The group's sustainable building products activities continued to
     advance, with increasing demand for greater energy and water management
     in construction.
   • Engineering Products divisional revenue from continuing
     operations of £19.7m and adjusted1 operating profit of £1.2m were 5%
     and 13% lower than the prior year, respectively. This performance
     was largely as anticipated, as the move from traditional automotive
     work to the new product and market areas continued at Alumasc
     Precision.

John McCall, Chairman, stated "Alumasc's trading results tend to be seasonally
biased towards the second half. With order books ahead of those a year ago, we
expect a similar pattern this year.

Alumasc's recent performance has benefited from actions taken to improve the
business and seek out opportunities for growth. These actions will continue to
yield benefits in the second half year and beyond. The Board is fully aware of
the uncertainties which dominate the broader economic outlook. However, the
group's balance sheet and businesses remain strong and the Board is confident in
Alumasc's ability to perform well in these circumstances."

    1 Adjusted profits and earnings exclude property disposal gains of
      £1.0m, brand amortisation of £0.1m and one-off reorganisation costs
      at Alumasc Dispense of £0.2m (2006: £nil in each case).


Presentation:

Today, a presentation will be made to institutional broker's analysts
and private client brokers by Paul Hooper (Chief Executive) and Andrew
Magson (Group Finance Director), with John McCall (Chairman) in
attendance. The meeting will commence at 9.30am and end at approximately
10.30am. It will be held at Bankside's offices, 1 Frederick's Place,
London EC2R 8AE (which is off Old Jewry, which itself runs between
Cheapside and Gresham Street, approximately 200 yards from the Bank of
England).



Enquiries:

The Alumasc Group plc                                               01536 383844
 Paul Hooper (Chief Executive)                                [email protected]
 Andrew Magson (Group Finance Director)

Bankside Consultants Limited
 Charles Ponsonby                                                  020 7367 8851
                                                   [email protected]





                              INTERIM ANNOUNCEMENT

                              Chairman's Statement


Overview

Alumasc traded strongly in the half year to 31 December 2007, building further
on the strategic re-alignment and improved performance achieved in the previous
year, and benefiting from the growing demand for sustainable building products.

Revenue from continuing operations, which include Levolux acquired last May,
increased by 26% to £59.9 million. Excluding the acquisition, revenue rose by
7%, driven by strong growth in the Building Products division. Adjusted1 pre-tax
profit from continuing operations, including Levolux, the UK's leading supplier
of solar shading systems for buildings, increased by almost 50% to £4.5 million
as a result of the higher revenue and improved operating margins of 8.8% (2006:
7.4%).

When Brock Metal, the producer of zinc and aluminium alloys sold in June 2007,
is included in the prior period comparator, total group revenue reduced by 20%,
while adjusted1 profit before tax increased by 24% and operating margins
improved by 3.3 percentage points. This illustrates the impact of the
transformation in Alumasc's portfolio of businesses last year and the
consequential improvement in quality of earnings arising from the group's
increased focus on premium building and precision engineering product
businesses.

Total profit before tax of £5.2 million (including property disposal gains,
brand amortisation and one-off reorganisation costs at Alumasc Dispense) was
ahead by 45%, with Brock Metal included in the prior period comparator.

Adjusted1 earnings per share from continuing activities of 8.6p were almost 50%
ahead of the prior period and basic earnings per share were 47% ahead at 10.3p.

The Board has declared a 4.8% increase in the interim dividend to 3.25p per
share (2006: 3.1p), covered 2.6 times by continuing earnings (2006: 2.25 times).

Building Products
Divisional revenue grew by 51% to £40.2 million (up 16% excluding Levolux) and
adjusted1 operating profit increased by 75% to £4.8 million (26% ahead,
excluding Levolux). In particular, the division's sustainable building products
activities continued to advance, with increasing demand for greater energy and
water management in construction.

Products that assist customers to manage energy consumption in buildings
experienced buoyant first-half demand, spearheaded by Levolux's solar shading
and control systems. Levolux is now integrated successfully into Alumasc's
portfolio of businesses, and its order book has grown to record levels.
Elsewhere, demand for green roofs continues to grow and the MR Facades business,
which provides external insulation for solid walls, benefited from improved
spend in the social housing refurbishment sector and increased penetration into
new build applications.

Building products associated with water management activities also performed
strongly, with continued growth from both Gatic Slotdrain and Gatic access
covers, particularly through direct sales into export markets, and improved
sales of other drainage products driven by new contracts to supply hospitals and
schools. Sales of rainwater goods remained buoyant, assisted by a widened
distribution network.

Alumasc Interior Building Products continued its transition to in-house
manufacture of Pendock Profiles, providing a much improved cost base in an
increasingly competitive market place.

The two businesses acquired by Alumasc in 2004 continued to perform well. Timloc
once again grew revenues and profits against the background of a more difficult
housing market, whilst further improving operating efficiencies through
investment in automation. Roof-Pro had an excellent first-half buoyed by a
substantial contract at a retail development.

The Building Products division contributed 67% and 82% respectively to the
group's total revenue and operating profits (2006: 36% and 59% respectively).

Engineering Products
Revenue from continuing operations of £19.7 million and adjusted1 operating
profit of £1.2 million in the Engineering Products division were 5% and 13%
lower than the prior year. This performance was largely as anticipated, as the
move from traditional automotive work to new product and market areas continued
at Alumasc Precision.

Activity levels at Alumasc Precision at the start of this financial year were
lower than at the beginning of the prior year, which had benefited from the last
deliveries of components to the Land Rover and Mini Cooper S projects. In the
second quarter of this financial year, significant levels of new non-automotive
diesel engine work for Caterpillar and Deutz, and a complex windshield surround
and other components for Aston Martin, began to come on stream. Progress had
meanwhile been made to reduce factory overhead costs at Alumasc Precision,
through both the outsourcing of lower value-added casting work to the Far East
and achievement of further operational efficiencies at our plants in the UK.

First-half profitability at Alumasc Dispense benefited from a better product
mix, although revenue was broadly unchanged. The decision was made in November
to consolidate Alumasc Dispense's operations onto a single rented site near
Kettering, enabling the sale of its facility at Borehamwood. Associated
re-organisation costs were £150,000, and the simplified ongoing operation will
be more cost efficient.

Financial position
There have been no significant changes in the overall shape of Alumasc's balance
sheet compared with the last year end. Property, plant and equipment reduced by
£1.8 million to £21.1 million, mainly as a result of the disposal of the former
Copal Warehouse at book value of £0.7 million in September, and the sale in
December of the Alumasc Dispense property at Borehamwood for net consideration
of £1.6 million, a gain of almost £1 million on book value. The cash proceeds
from this transaction were received in January.

The assumptions relating to the IAS19 valuation of the group's defined benefit
pension schemes remain unchanged from those at the year end. The draft actuarial
valuation of the Benjamin Priest pension scheme at 30 April 2007 is currently
being discussed with the Trustees, including an update of mortality assumptions.

Shareholders' funds at 31 December 2007 increased by £1.6 million to £33.8
million from the year end position, reflecting post-tax profits of £3.7 million
in the period, the payment of the prior year final dividend of £2.4 million, and
other minor changes in equity of £0.3 million.

Net borrowings reduced by £1.1 million to £11.8 million during the period, in
line with the strong trading performance. Interest cover (on borrowings)
exceeded nine times, and gearing at 31 December 2007 reduced to 35% (30 June
2007: 40%). Capital expenditure of £1.3 million was some £0.5 million lower than
the six-month depreciation charge.

Annualised post-tax return on average capital invested improved to 13.4% (2006:
12.4%) due to the improved operating margins and lower capital intensity of the
Group's portfolio of businesses following the acquisition of Levolux and
disposal of Brock towards the end of last year.


Prospects

Alumasc's trading results tend to be seasonally biased towards the second half.
With order books ahead of those a year ago, we expect a similar pattern this
year.

The main factors anticipated to impact second-half performance are continuing
growth in demand for sustainable building products; general levels of UK
economic and construction activity; the extent to which increasing input cost
inflation on ferrous and oil based materials can be mitigated through internal
cost savings or selling price increases; and the speed of introduction of new
work won at Alumasc Precision.

Alumasc's recent performance has benefited from actions taken to improve the
business and seek out opportunities for growth. These actions will continue to
yield benefits in the second half year and beyond. The Board is fully aware of
the uncertainties which dominate the broader economic outlook. However, the
group's balance sheet and businesses remain strong and the Board is confident in
Alumasc's ability to perform well in these circumstances.


John McCall
Chairman
7 February 2008



Note 1: Adjusted profits and earnings in 2007/08 are stated prior to property
disposal gains of £1.0m, brand amortisation of £0.1m and one-off re-organisation
costs at Alumasc Dispense of £0.2m (2006/07: £nil in each case)



                    UNAUDITED CONSOLIDATED INCOME STATEMENT
                     for the half year to 31 December 2007


                                                Half year     Half Year   Year ended
                                              31 December   31 December      30 June
                                                     2007          2006         2007
                                          Notes     £'000         £'000        £'000
Continuing operations

Revenue                                      3     59,881        47,432      103,601
Cost of sales                                     (42,035)      (33,226)     (71,800)
                                                  --------     --------     --------
Gross profit                                       17,846        14,206       31,801
Net operating expenses                            (12,787)      (10,682)     (23,425)
Profit on disposal of property               5        990             -          637
                                                  --------     --------     --------
Operating profit                             3      6,049         3,524        9,013

Finance revenue                                        82            14           72
Finance costs                                        (655)         (335)        (883)
Other finance expense - pensions                     (249)         (200)        (400)
                                                  --------      --------    --------
Profit before taxation                              5,227         3,003        7,802
Tax expense                                  6     (1,511)         (899)      (2,248)
                                                  --------     --------     --------
Profit for the period from continuing
operations                                          3,716         2,104        5,554

Discontinued operations

Profit after tax for the period from
discontinued operations                      4          -           374        1,370
                                                  --------     --------     --------
Profit for the period                               3,716         2,478        6,924
                                                  --------     --------     --------

Profit for the period attributable to:
Equity holders of the parent                        3,706         2,455        6,889
Minority interest                                      10            23           35
                                                  --------     --------     --------
                                                    3,716         2,478        6,924
                                                  --------     --------     --------

                                                    Pence         Pence        Pence
Basic earnings per share
- continuing operations                              10.3           5.9         15.6
- discontinued operations                               -           1.1          3.9
                                                  --------     --------     --------
                                             8       10.3           7.0         19.5
                                                  --------     --------     --------

Diluted earnings per share
- continuing operations                              10.3           5.8         15.6
- discontinued operations                               -           1.1          3.8
                                                  --------     --------     --------
                                             8       10.3           6.9         19.4
                                                  --------     --------     --------





       UNAUDITED CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
                     for the half year to 31 December 2007

                                                Half year    Half year       Year
                                              31 December  31 December    30 June
                                                     2007         2006       2007
                                                    £'000        £'000      £'000

Income and expense recognised directly in equity

Actuarial gain/(loss) on defined benefit
pensions                                               61       (1,900)     4,676

Movement in cash flow hedging position               (249)           7         99

Exchange differences on retranslation of
foreign operations                                      8            -         (6)

Tax on items taken directly to or
transferred                                           (17)         569     (1,754)
from equity
                                                ---------    ---------    -------
Net (expense)/ income recognised directly in
equity                                               (197)      (1,324)     3,015
for the period
Profit for the period                               3,716        2,478      6,924
                                                ---------    ---------    -------
Total recognised income for the period              3,519        1,154      9,939
                                                ---------    ---------    -------

Attributable to:
Equity holders of the parent                        3,509        1,131      9,904
Minority interest                                      10           23         35
                                                ---------    ---------    -------
                                                    3,519        1,154      9,939
                                                ---------    ---------    -------




                      UNAUDITED CONSOLIDATED BALANCE SHEET
                              at 31 December 2007

                                              31 December   31 December    30 June
                                                     2007          2006       2007
                                          Notes     £'000         £'000      £'000
Assets
Non-current assets
Property, plant and equipment                      21,111        24,525     22,877
Goodwill                                           14,966         5,556     14,966
Other intangible assets                             3,907           435      4,171
Financial assets                                       17            34         17
Deferred tax assets                                 4,560         7,570      4,917
                                                  -------     ---------   --------
                                                   44,561        38,120     46,948
Current assets
Inventories                                        15,391        13,823     13,714
Trade and other receivables                        27,404        29,612     28,916
Cash and short term deposits                        3,126             -      4,814
Derivative financial assets                             -           295        106
                                                  -------     ---------   --------
                                                   45,921        43,730     47,550
Non-current assets classified
as held for sale                                      734         2,377        678
                                                  -------     ---------   --------
Total assets                                       91,216        84,227     95,176
                                                  -------     ---------   --------
Liabilities
Non-current liabilities
Interest bearing loans and
borrowings                                        (14,863)            -    (14,873)
Employee benefits payable                         (16,284)      (25,232)   (17,561)
Provisions                                         (1,253)         (344)    (1,125)
Deferred tax liabilities                           (1,499)       (1,320)    (1,352)
                                                  -------     ---------   --------
                                                  (33,899)      (26,896)   (34,911)
Current liabilities
Bank overdraft                                          -        (5,650)    (2,837)
Interest bearing loans and
borrowings                                            (17)         (289)       (12)
Trade and other payables                          (20,847)      (26,136)   (22,523)
Provisions                                           (220)         (812)      (214)
Tax payable                                        (2,285)         (879)    (2,468)
Derivative financial
liabilities                                          (149)         (288)         -
                                                  -------     ---------   --------
                                                  (23,518)      (34,054)   (28,054)
                                                  -------     ---------   --------
Total liabilities                                 (57,417)      (60,950)   (62,965)
                                                  -------     ---------   --------
                                                  -------     ---------   --------
Net assets                                         33,799        23,277     32,211
                                                  -------     ---------   --------
Equity
Called up share capital                             4,517         4,412      4,479
Share premium                                         383        27,406          -
Other reserve                                       1,251         1,401      1,251
Capital redemption reserve                              -           693          -
Capital reserve - own shares                         (133)         (133)      (133)
Hedging reserve                                      (149)            8        100
Foreign currency reserve                                2             -         (6)
Retained earnings                                  27,880       (10,567)    26,482
                                                  -------     ---------   --------
Equity attributable to equity
holders of the parent                              33,751        23,220     32,173
Minority interest                                      48            57         38
                                                  -------     ---------   --------
Total equity                                 10    33,799        23,277     32,211
                                                  -------     ---------   --------



                   UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
                    for the half year ended 31 December 2007

                                            Half year      Half year      Year
                                          31 December    31 December   30 June
                                                 2007           2006      2007
                                 Notes          £'000          £'000     £'000
Operating activities
Operating profit from
continuing operations                           6,049          3,524     9,013
Adjustments for:
Depreciation                                    1,676          1,438     3,433
Amortisation                                      179             81       207
Impairments                                         -              -       469
Gain on disposal of property,
plant and equipment                              (981)           (17)   (1,039)
Gain on sale of investments                         -            (32)      (32)
(Increase) / decrease in
inventories                                    (1,677)           517      (228)
Decrease / (increase) in
receivables                                     2,523          3,684      (893)
Decrease in trade and other
payables                                       (2,854)        (5,249)   (1,671)
Movement in provisions                            134           (236)     (779)
Movement in retirement benefit
obligations                                    (1,465)        (1,175)   (2,470)
                                            ---------      ---------   -------
Cash generated from continuing
operations                                      3,584          2,535     6,010
Cash flow from discontinued
operations                                      1,167           (956)   (6,626)
Tax paid                                       (1,207)          (413)   (1,339)
                                            ---------      ---------   -------
Net cash inflow / (outflow)
from operating activities                       3,544          1,166    (1,955)
                                            ---------      ---------   -------

Investing activities
Purchase of property, plant and
equipment                                      (1,209)        (1,501)   (2,716)
Payments to acquire intangible
fixed assets                                      (80)           (34)     (353)
Proceeds from sale of property,
plant and equipment                               674             29     2,424
Acquisition of subsidiary
undertakings net of cash
acquired                                            -              -   (12,432)
Proceeds from sale of business
activities                                        747              -     8,150
Proceeds from sale of
investments                                         -            305       305
                                            ---------      ---------   -------
Net cash inflow / (outflow)
from investing activities                         132         (1,201)   (4,622)
                                            ---------      ---------   -------
Financing activities
Net interest paid                                (573)          (321)     (811)
Equity dividends paid                          (2,378)        (2,218)   (3,309)
New borrowings (net of
arrangement fees)                                   -              -    14,860
Loan charges and amortisation                      (1)             -         -
Repayment of amounts borrowed        9             (4)          (433)     (725)
Proceeds from issue of share
capital                                           421              -     1,195
                                            ---------      ---------   -------
Net cash (outflow) / inflow
from financing activities                      (2,535)        (2,972)   11,210
                                            ---------      ---------   -------

Net increase / (decrease) in
cash and cash equivalents            9          1,141         (3,007)    4,633

Cash and cash equivalents at
beginning of period                             1,977         (2,650)   (2,650)
Effect of foreign exchange rate
changes                                             8              7        (6)
                                            ---------      ---------   -------
Cash and cash equivalents at
end of period                                   3,126         (5,650)    1,977
                                            ---------      ---------   -------



                        NOTES ON THE UNAUDITED ACCOUNTS
                     for the half year to 31 December 2007



1. Basis of preparation

The interim consolidated accounts of The Alumasc Group plc and its subsidiaries
have been prepared on the basis of International Financial Reporting Standards
(IFRS), as adopted by the European Union, that are effective at 31 December
2007.

The interim consolidated accounts have been prepared using the accounting
policies set out in the statutory accounts for the financial year to 30 June
2007 and in accordance with IAS 34 "Interim Financial Reporting".

Comparative period information for the six months to 31 December 2006 has been
restated to reflect the reclassification of Brock Metal as a discontinued
operation following the sale of the business in June 2007.

The interim consolidated accounts include comparative figures for the financial
year ended 30 June 2007 which are an extract from the Group's statutory accounts
for that financial year. Those accounts have been reported on by the Company's
auditors and delivered to the Registrar of Companies. The report of the auditors
was unqualified and did not contain statements under section 237(2) or (3) of
the Companies Act 1985.

The interim accounts for the half year ended 31 December 2007 are not statutory
accounts and have been neither audited nor reviewed by the Group's auditors.

2. Risks & Uncertainties
The principal risks and uncertainties affecting the business activities of the
Group remain those detailed on page 16 of the 2007 Report and Accounts, a copy
of which is available on the Company's website at www.alumasc.co.uk. The
Chairman's Statement in this interim report includes comments on the prospects
for the Group for the remaining six months of the financial year.

3. Analysis of revenue and trading profit



                                                   Half year
                                              31 December 2007
                                     Building             Engineering     
                                     products                products    Total
                                        £'000                   £'000    £'000

Revenue                                40,168                  19,713   59,881

Adjusted operating profit               4,833                   1,157    5,990
Brand amortisation                        (85)                      -      (85)
Alumasc Dispense
reorganisation costs                        -                    (150)    (150)
                                      --------                -------- --------
Segment operating result                4,748                   1,007    5,755
Unallocated costs                                                         (696)
Profit on disposal of property                                             990
                                      --------                -------- --------
Operating profit                                                         6,049
                                      --------                -------- --------





3. Analysis of revenue and trading profit (continued)

                                                               Half year
                                                           31 December 2006

                           Building            Engineering              Continuing              Discontinued     
                           products               products              operations                operations    Total
                              £'000                  £'000                   £'000                     £'000    £'000

Revenue                      26,651                 20,781                  47,432                    27,626   75,058
Segment operating result      2,764                  1,331                   4,095                       599    4,694
Unallocated costs                                                             (571)                        -     (571)
                           --------               --------                --------                 ---------  -------
Operating profit                                                             3,524                       599    4,123
                           --------               --------                --------                 ---------  -------



                                                                   Year
                                                               30 June 2007

                            Building            Engineering              Continuing              Discontinued     
                            products               products              operations                operations     Total
                               £'000                  £'000                   £'000                     £'000     £'000

Revenue                       59,647                 43,954                 103,601                    59,803   163,404

Adjusted operating profit      6,960                  2,600                   9,560                     2,090    11,650
Acquisition accounting 
adjustment                      (320)                     -                    (320)                        -      (320)
Brand amortisation               (50)                     -                     (50)                        -       (50)
                            --------               --------                --------                 ---------   -------
Segment operating
result                         6,590                  2,600                   9,190                     2,090    11,280
Unallocated costs                                                              (814)                        -      (814)
Profit on disposal of
property                                                                        637                         -       637
                            --------               --------                --------                 ---------   -------
Operating  profit                                                             9,013                     2,090    11,103
                            --------               --------                --------                 ---------   -------



Reportable segments now exclude central and other unallocated costs, and prior
year comparatives have been restated accordingly. Following the recent
significant changes in the composition of the group, management is currently
reviewing the most appropriate way in which to analyse performance by business
segments in future reporting periods.


4. Discontinued operations

Discontinued operations in the prior year comprise the sale of the Brock Metal
business, the leading UK supplier of zinc and aluminium diecasting alloys, on 30
June 2007.

The results of discontinued operation included in the consolidated income
statement of the prior periods are as follows:


                                            Half year     Half year      Year
                                          31 December   31 December   30 June
                                                 2007          2006      2007
                                                £'000         £'000     £'000

Revenue                                             -        27,626    59,803
Cost of sales                                       -       (25,932)  (55,574)
                                          -----------     ---------  --------
Gross profit                                        -         1,694     4,229
Net operating expenses                              -        (1,095)   (1,993)
                                          -----------     ---------  --------
Operating profit                                    -           599     2,236
Loss on disposal                                    -             -      (146)
                                          -----------     ---------  --------
Profit before tax                                   -           599     2,090
Tax expense                                         -          (225)     (720)
                                          -----------     ---------  --------
Profit after taxation                               -           374     1,370
                                          -----------     ---------  --------

The net cash flows attributable to discontinued operations are as
follows:
                                            Half year     Half year      Year
                                          31 December   31 December   30 June
                                                 2007          2006      2007
                                                £'000         £'000     £'000

Operating cash flows                            1,167          (956)   (6,626)
Investing cash flows                              747             -     8,150
                                          -----------     ---------  --------
Net cash inflow / (outflow)                     1,914          (956)    1,524
                                          -----------     ---------  --------



5. Profit on disposal of property
Profit on disposal of property              
comprises:                                   Half year     Half year      Year
                                           31 December   31 December   30 June
                                                  2007          2006      2007
                                                 £'000         £'000     £'000

Profit on sale of Borehamwood
freehold property                                  990             -         -
Profit on sale of Walsall
freehold property                                    -             -       991
Impairment of Copal long
leasehold property                                   -             -      (354)
                                              --------     ---------   -------
                                                   990             -       637
                                              --------     ---------   -------


6. Tax expense
                                      Half year     Half year      Year
                                    31 December   31 December   30 June
                                           2007          2006      2007
                                          £'000         £'000     £'000

Current tax - UK Corporation
tax
          - continuing operations         1,024           533     1,678
          - discontinued                      -           225       720
          operations                 ----------    ----------  --------
                                          1,024           758     2,398
Amounts overprovided in
previous years                                -             -      (128)
                                     ----------    ----------  --------
Total current tax                         1,024           758     2,270

Deferred tax
                   - continuing             487           366       698
                   operations
                   - discontinued             -             -         -
                   operations        ----------    ----------  --------
Total deferred tax                          487           366       698
                                     ----------    ----------  --------
Tax charge in the income
statement                                 1,511         1,124     2,968
                                     ----------    ----------  --------


The tax charge in the income statement is disclosed as follows:

Income tax expense on
continuing operations                     1,511           899     2,248
Income tax expense on
discontinued operations                       -           225       720
                                     ----------    ----------  --------
                                          1,511         1,124     2,968
                                     ----------    ----------  --------

If the Finance Act is substantially enacted prior to 30 June 2008, and
Industrial Buildings Allowances (IBAs) are to be phased out, the deferred tax
liability currently recorded in respect of IBAs might need to be reversed in the
full-year accounts. The impact would be a credit to the income statement of
around £0.1m, decreasing the overall tax rate for the year by about 1%.
7. Dividends
The directors have approved an interim dividend per share of 3.25p (2006: 3.1p)
which will be paid on 7 April 2008 to shareholders on the register at the close
of business on 12 March 2008. In accordance with IFRS accounting requirements,
as the dividend was approved after the balance sheet date, it has not been
accrued in the interim consolidated financial statements. A final dividend per
equity share of 6.6p in respect of the 2006/07 financial year was paid during
the period.


8. 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 adjusted earnings per share figure is based on profit adjusted for gains
or losses on disposal of property, brand amortisation, reorganisation costs
and, in the year to 30 June 2007, an acquisition accounting adjustment. The
figure is also based on the same weighted average number of shares used in
the basic earnings per share calculation above.


                                             Half year                    Half year           Year
                                           31 December                  31 December        30 June 
                                                  2007                         2006           2007
                                                 £'000                        £'000          £'000
Net Profit attributable
to equity holders of the
parent - continuing operations                   3,706                        2,081          5,519
Net profit attributable
to equity holders of the
parent - discontinued operations                     -                          374          1,370
                                              --------                     --------        -------
Net profit attributable
to equity holders of the parent                  3,706                        2,455          6,889
                                              --------                     --------        -------



                                                  000s                         000s           000s

Basic weighted average number of shares         35,993                       35,293         35,371
Dilutive potential ordinary
shares - employee share options                     92                           66            118
                                              --------                     --------        -------
Diluted weighted average number of shares       36,085                       35,359         35,489
                                              --------                     --------        -------



Reconciliation to adjusted earnings per share:


                                             Half year                    Half year           Year
                                           31 December                  31 December        30 June 
                                                  2007                         2006           2007
Continuing    operations:                        £'000                        £'000          £'000

Profit before taxation                           5,227                        3,003          7,802
Less: profit on disposal of property              (990)                           -           (637)
Add: Levolux acquisition & brand amortisation       85                            -            370
Add: Alumasc Dispense reorganisation costs         150                            -              -
                                              --------                     --------        -------

Adjusted profit before taxation                  4,472                        3,003          7,535
Tax at underlying group rate of 31% (2006: 32%) (1,386)                        (961)        (2,411)
                                              --------                     --------        -------
Adjusted earnings                                3,086                        2,042          5,124
                                              --------                     --------        -------
Adjusted earnings per share                       8.6p                         5.8p          14.5p
                                              --------                     --------        -------




9. Movement in net borrowings

                                                                           Finance leases
                            Cash and bank                                     and secured              Net 
                               overdrafts   Bank loans                              loans       borrowings
                                    £'000        £'000                              £'000            £'000

At 1 July 2007                      1,977      (14,860)                               (25)         (12,908)
Cash flow movements                 1,141            -                                  4            1,145
Effect of foreign
exchange rate changes                   8            -                                  -                8
Loan charges and amortisation           -            1                                  -                1
                                 --------     --------                          ---------         --------
At 31 December 2007                 3,126      (14,859)                               (21)         (11,754)
                                 --------     --------                          ---------         --------

At 1 July 2006                     (2,650)           -                               (722)          (3,372)
Cash flow movements                (3,007)           -                                433           (2,574)
Effect of foreign
exchange rate changes                   7            -                                  -                7
                                 --------     --------                          ---------         --------
At 31 December 2006                (5,650)           -                               (289)          (5,939)
                                 --------     --------                          ---------         --------

At 1 July 2006                     (2,650)           -                               (722)          (3,372)
New borrowings (net of
arrangement fees)                       -      (14,860)                               (28)         (14,888)
Cash flow movements                 4,633            -                                725            5,358
Effect of foreign
exchange rate changes                 (6)           -                                  -               (6)
                                --------     --------                          ---------         --------
At 30 June 2007                    1,977      (14,860)                               (25)         (12,908)
                                --------     --------                          ---------         --------





10. Reconciliation of changes in total equity

For the half year to 31 December 2007

                                           Half year      Half year       Year
                                         31 December    31 December    30 June
                                                2007           2006       2007
                                               £'000          £'000      £'000

At beginning of period                        32,211         24,319     24,319
Shares issued                                    421              -      1,195
Net (losses)/gains on cash flow
hedges                                          (249)             7         99
Exchange differences on
retranslation of foreign
operations                                         8              -         (6)
Actuarial gain/(loss) on defined
benefit
pensions net of tax                               44         (1,331)     2,922
Dividends                                     (2,378)        (2,218)    (3,340)
Profit for the period                          3,716          2,478      6,924
Share based payments                              26             22         98
                                           ---------      ---------   --------
At end of period                              33,799         23,277     32,211
                                           ---------      ---------   --------



11. Post balance sheet events

In connection with last year's capital re-organisation, the company agreed with
the Pension Trustees to contribute £1.5 million into the group's defined benefit
pension schemes. On 1 February 2008, the company contributed the freehold
property being leased to Brock Metal, valued at £1.1 million, and £0.4 million
in cash into the two pension schemes in equal shares.




Responsibility Statement

We confirm that to the best of our knowledge:

a) The condensed set of financial statements has been prepared in accordance
with IAS 34;

b) The interim management report includes a fair review of the information
required by the Financial Statements Disclosure and Transparency Rules (DTR
4.2.7R) - indication of important events during the first six months and their
impact on the financial statements and description of principal risks and
uncertainties for the remaining six months of the year; and

c) The interim management report includes a fair review of the information
required by DTR 4.2.8R - disclosure of related party transactions and changes
therein.

On behalf of the Board


G P Hooper                          A Magson
Chief Executive                     Group Finance Director





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