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Alumasc Group Plc (ALU)

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Wednesday 06 June, 2001

Alumasc Group Plc

Trading Statement

Alumasc Group PLC
6 June 2001

                            THE ALUMASC GROUP plc

                                TRADING UPDATE

Alumasc, the high specification engineering and building products company,
announces a partial recovery in trading activity following the weak
performance in the half year to December 2000.  While the Group's precision
components and building products activities have been stronger in the second
half,  the pace of improvement has been slower than expected with  delays to
the start of  several major new projects.  There has been no recovery in
demand in the Group's brewery related business from the low activity of the
first half associated with major sectoral uncertainty.  For these reasons the
Board does not expect to achieve market expectations for profit before tax
from continuing activities for the full year to 30 June 2001.

Vigorous reviews have been undertaken of each business, under the direction of
newly appointed Managing Director Paul Hooper, who joined the Group in April
2001.  Each business has examined its cost base, operational efficiency and
product profitability.  Business plans to sustain and build on the present
recovery, while incurring current year costs, are expected to result in
significant operational improvements.

The Board believes that these actions will underpin the future performance of
the Group's continuing businesses.  In particular, the Board continues to
believe that the prospects for significant growth in the Precision Components
division remain excellent, based upon the provision of outstanding and
continually modernised casting and machining services to an increasing spread
of world class customers in the UK and overseas.

Two disposals have been completed during the second half year, of Crossland,
the automotive pressings business, and of the remainder of Corofil Woodall.
These businesses had combined net assets of £2.4 million, for which the Group
will receive a total of £2 million over a nine month period.   Following a
trading loss in the first half year, these disposals will result in combined
capital and trading losses from discontinued activities of approximately £1
million in the year.

On the above analysis of the underlying strengths of the Group's business, the
Directors expect to recommend an unchanged final dividend per share of 6.05p
in respect of the year ending 30 June 2001, making a total of 8.5p (2000:
8.5p) for the full year which the Board currently expects to be covered by
earnings from continuing activities.  The Board remains committed to restoring
satisfactory dividend cover from the continuing recovery in profitability.

With the Group's strong balance sheet, the Board is pursuing an active share
buy-back policy during the current financial year and has acquired 4.3 million
shares, equivalent to 11 per cent of issued share capital at the start of the
year, at an average price of £1.34 per share.  Authority exists to acquire up
to a further 1.7 million shares prior to the Group's  October AGM.


The Alumasc Group plc                      01536-383844
John McCall (Chairman)
Paul Hooper (Group Managing Director)

Bankside Consultants Limited               020-72 20 74 77
Charles Ponsonby

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