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Alumasc Group Plc (ALU)

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Friday 16 December, 2005

Alumasc Group Plc

Trading Update

Alumasc Group PLC
16 December 2005

                              THE ALUMASC GROUP PLC

                                  Trading Update

In its statement dated 7 November 2005 with regard to the closure of Copal
Casting, the Board of Alumasc, the high specification building and engineering
products company, commented that it anticipated lower profits from its
engineering business in the first half (to 31 December 2005) of the current year
than in the equivalent period of the prior year.

While the marketplace for engineering businesses in the UK remains challenging,
it is encouraging to report that the introduction of new work at Alumasc
Precision, the principal engineering division, to replace work lost on the
demise of Rover, is proceeding at an exceptionally fast pace. However, in the
short term, such a high turnover in activity is accompanied by high costs
associated with new projects prior to their reaching planned volume and
productivity levels. While this is encouraging news for the future, short-term
profit has suffered as a result.

The group's building products activities, which contributed 64% to the previous
year's profits, are continuing to grow. In addition to the major contract to
supply roofing materials for Alcoa's new aluminium smelter in Iceland, a number
of other contracts have been secured which give confidence for the second half

As a consequence of the above, the Board expects group profits for the first
half - and hence for the year as a whole - to fall below market expectations
based upon estimates made earlier in the year. Prospects for the more important
second half, however, remain positive. In these circumstances, and given the
strength of the balance sheet, the Board would expect dividends to be held at
the level of the previous year. It remains the Board's intention to grow
dividend payments in line with the growth in future earnings.


The Alumasc Group plc                                            01536-383 844
John McCall (Chairman)
Paul Hooper (Chief Executive)

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

                      This information is provided by RNS
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