TIDMALU
RNS Number : 8239D
Alumasc Group PLC
03 February 2015
IMMEDIATE RELEASE 3 February 2015
THE ALUMASC GROUP PLC - INTERIM RESULTS ANNOUNCEMENT
Alumasc (ALU.L), the premium building and engineering products
group, announces interim results for the six months ended 31
December 2014.
Half year to 31 December 2014 2013 % change
Continuing operations:
Revenue (GBPm) 49.0 45.2 +8%
Underlying profit before tax
(GBPm)* 4.0 3.5 +14%
Underlying earnings per share
(pence)* 8.9 7.6 +17%
Total group:
Profit before tax (GBPm) 3.0 2.4 +24%
Basic earnings per share (pence) 6.6 5.2 +27%
Dividends per share (pence) 2.5 2.2 +14%
Net debt at 31 December (GBPm) 7.7 7.7 -
(*) Underlying profits and earnings per share from continuing
operations are stated prior to the deduction of brand amortisation
charges of GBP0.1 million (2013: GBP0.1 million), IAS19 pension
costs of GBP0.7 million (2013: GBP0.5 million) and pre-tax losses
from discontinued operations of GBP0.2 million (2013: GBP0.5
million).
Key points
-- The group's best first half performance since 2008
-- Decision taken to focus the group's strategic development on
accelerating the growth of its Building Products activities.
Discussions with potential buyers of Alumasc Precision Components
in progress
-- All H1 growth driven by Building Products which increased
revenue by 11% to GBP45.2m and underlying operating profit by 22%
to GBP4.6m, outperforming UK Construction output growth of 6%.
-- Roofing & Walling operating profit doubled on revenue up
24% with performance benefiting from a widened product range and
increased sales in the South East. Facades experienced strong
demand in Scotland and for new products.
-- Solar Shadingprofit up 18% and Construction Products profit
down 37%, each mainly reflect timing of large contracts.
-- Revenue from Rainwater, Drainage and Housebuilding Products
up 17%. Capacity is being added to support growth.
-- H1 Building Products order intake up 30% on prior H1 to GBP48.9m.
-- 14% interim dividend increase reflects improved performance and prospects.
Paul Hooper, Chief Executive, commented:
"...the Board believes the group is well positioned to continue
to grow its Building Products business both in this financial year
and beyond."
Enquiries:
The Alumasc Group plc 01536 383844
Paul Hooper (Chief Executive)
Andrew Magson (Finance Director)
Glenmill Partners Limited
Simon Bloomfield 07771 758517
REVIEW OF INTERIM RESULTS
Overview
Alumasc is pleased to report its best first half year result
since 2008, with the strong performance attributable to ongoing
profitable growth in the Building Products division where revenues
again increased at a faster rate than the UK construction market as
a whole:
-- Group revenues from continuing operations increased by 8% to GBP49.0 million.
-- Underlying profit before tax from continuing operations advanced by 14% to GBP4.0 million.
-- Underlying earnings per share from continuing operations was
8.9 pence, some 17% ahead of a year ago.
-- Statutory profit before tax of GBP3.0 million was 24% up on
the prior year and basic earnings per share of 6.6p was 27% ahead.
A reconciliation of underlying profits and earnings to the
statutory figures is provided in note 5 to the interim financial
statements.
-- The Board has decided to increase the interim dividend by 14% to 2.5 pence.
As announced in October 2014, the Board has concluded that
Alumasc Precision Components ("APC") no longer fits the group's
strategy for growth. In line with this decision, the group is
currently discussing the sale of APC with a number of potential
trade buyers. The results of this business have therefore been
presented in the interim financial statements as a discontinued
operation. The net book value of APC, shown as a current asset
available for sale in the group balance sheet, is GBP6.5
million.
Strategic Developments
In our 2014 Annual Report we stated that the Board would refresh
its appraisal of how best to direct the group's resources in
building value for shareholders.
Following this review:
1. The Board has decided to focus the group's strategic
development on accelerating the growth of its Building Products
activities:
-- the combination of the strategic positioning of these
businesses in sectors that help manage the scarce resources of
energy and water with initiatives to increase our share of those
markets through new product development and geographic expansion
has begun to deliver an acceleration in revenue and profit
growth;
-- the group is more proactively seeking Building Products
acquisitions to complement organic growth opportunities; and
-- having sold the non-core Pendock Profiles business in
September 2014, the group does not intend to divest any other
Building Products businesses.
2. The Board has decided to divest APC, the larger of our two
engineering businesses and, as described above, is in discussions
with a number of potential acquirers of that business.
Operational review - continuing operations
Group revenues from continuing operations for the six months
ended 31 December 2014 increased by 8% to GBP49.0 million (2013:
GBP45.2 million), with underlying operating profits increasing by
12% to GBP4.3 million (2013: GBP3.8 million). Operating margins in
2014 improved to 8.8% from 8.5% in 2013. All of the growth came
from the Building Products division. Group interest costs on bank
borrowings were similar year on year, and the resultant group
underlying profit before tax of GBP4.0 million (2013: GBP3.5
million) was ahead of the prior year by 14%.
Building Products revenues grew by 11% to GBP45.2 million (2013:
GBP40.7 million) and divisional operating profits rose by 22% to
GBP4.6 million (2013: GBP3.7 million) at operating margins of 10.1%
(2013: 9.2%).
This improved performance was driven mainly by our Roofing and
Walling businesses, where actions taken over recent years to
strengthen management and sales resources, introduce new products,
and expand the product range and geographical reach are now bearing
fruit against a backdrop of an improving UK market place. The large
Kitimat smelter refurbishment contract is now very close to
completion and made only a modest contribution to first half
results in 2014.
Our Rainwater, Drainage and House Building Products businesses
continued the strong momentum of the previous year, growing
revenues by a further 17%. Investments in new product development
and in adding new capacity gave rise to some additional costs in
the transitional period, resulting in the generation of a similar
level of operating profit to that delivered in the first half of
the prior financial year.
In the Construction Products segment, Gatic had a satisfactory
first half, without the benefit of any individual large project in
the UK this year. The multi-million US Dollar project at Doha Port
won last summer is under way and will also benefit the second half
year. SCP, our scaffolding and related building products business,
performed well benefiting from a broadening of both product ranges
and routes to market.
Enquiry levels and order intake at Levolux is showing early
signs of improvement, indicative of some recovery in the UK new
build commercial market, particularly in London and the South East.
However, market activity in this segment remains around 30% below
its 2008 peak. Levolux's improved first half result benefited from
ongoing works, now close to complete, on the large commercial
building in London that commenced last year, and on the substantial
final project at Chiswick Park where the majority of the work is
now done. Steady progress continues in developing export markets,
with most success so far in North America.
Dyson Diecasting had a solid first half performance without
matching the record highs of the prior year which had benefited
from the initial stocking of some new product lines.
Operational review - discontinued operations
APC incurred a modest trading loss in the period, a much
improved performance compared with a year ago due to recovery plan
actions taken. These included exiting loss making work last year,
purchasing savings, operational efficiencies and strong overhead
control. However, we were notified in the Autumn that certain
export work to Europe would not be renewed as customer engine
variants were updated. Unexpectedly at that time APC also received
some significant retrospective claims for alleged quality and
delivery issues on the work that had come to an end. Some of these
claims have now been settled and we are in discussions to resolve
the remaining matters. Provisions against the expected value of the
settlement of the claims more than offset the improved trading
performance of the business, resulting in an increase in APC's
overall operating losses for the period to GBP1.1 million (2014:
loss of GBP0.7 million).
Pendock Profiles made a small trading profit prior to the sale
of this business in September 2014. The book gain made on the sale
was GBP0.8 million.
Cash flow, balance sheet, pensions and risk
The group's cash performance was in line with expectations, with
overall cash inflows and outflows balanced for the period as a
whole. Net debt at 31 December of GBP7.7 million therefore remained
unchanged compared to both 30 June 2014 and also 31 December 2013.
The average level of net debt on a cleared funds basis was also
similar to the prior half year, as was the net interest charge
relating to bank borrowings for the period of GBP0.3 million.
Close to record low corporate bond yields used to discount
pension liabilities to present values caused an increase in the
valuation of the pension deficit shown on the group balance sheet
to GBP21.4 million (30 June 2014: GBP17.9 million, 31 December
2013: GBP15.5 million). This in turn led to a reduction in
shareholders' funds to GBP15.0 million (30 June 2014: GBP17.0
million, 31 December 2013: GBP18.3 million). The valuation of
pension liabilities for accounting purposes has no direct impact on
the level of deficit repair contributions of GBP3.0 million per
annum (including scheme running expenses) that the company is
committed to pay into the pension schemes. The next full triennial
actuarial review is scheduled to take place in 2016. In the
meantime, further actions are being taken to reduce gross pension
liabilities and improve pension fund investment returns within an
acceptable level of risk.
The group's key business risks are as set out on pages 16 and 17
of the group's 2014 Annual Report, except as stated in note 3 to
the interim financial statements.
Outlook
Traditionally, Alumasc has experienced some seasonal bias in
favour of second half year results, but in the current year this is
expected to be offset by the timing of larger construction
projects, which are anticipated to make a more significant
contribution to the first half of the 2014/15 financial year.
This is reflected in order books, where Building Products order
intake in the period was up by 30% to GBP48.9 million (2013:
GBP37.5 million), some of this relating to projects scheduled
beyond this financial year. The value of the Building Products
order book of GBP19.2 million at 31 December 2014 was similar to
the prior financial year end, as billings during the period on
larger contracts offset the general growth in the order book.
More broadly, the Board believes the group is well positioned to
continue to grow its Building Products business both in this
financial year and beyond.
Dividend
In view of the strong first half performance and belief in the
improving medium to longer term prospects for the group, the Board
has decided to increase the interim dividend by 14% to 2.5 pence
per share (2013/14: 2.2 pence). This will be paid on 7 April to
shareholders on the register at 6 March.
Paul Hooper, Chief Executive
3 February 2015
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE
INCOME
for the half year to 31 December 2014
Year to
Half year to 31 December Half year to 31 December 30 June
2014 2013 2014
Non-underlying Non-underlying
Underlying Total Underlying Total Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Continuing Notes GBP'000 GBP'000 GBP'000 GBP'000
operations GBP'000 GBP'000 GBP'000
Revenue 4 48,995 - 48,995 45,175 - 45,175 88,857
Cost of sales (34,289) - (34,289) (30,528) - (30,528) (59,249)
----------- -------------- ----------- ----------- -------------- ----------- ----------
Gross profit 14,706 - 14,706 14,647 - 14,647 29,608
Net operating
expenses
Net operating
expenses
before
non-underlying
items (10,397) - (10,397) (10,815) - (10,815) (21,843)
Brand
amortisation 5 - (134) (134) - (134) (134) (268)
IAS 19 pension
scheme
administration
costs 5 - (270) (270) - (200) (200) (452)
----------- -------------- ----------- ----------- -------------- ----------- ----------
Net operating
expenses (10,397) (404) (10,801) (10,815) (334) (11,149) (22,563)
Operating profit 4 4,309 (404) 3,905 3,832 (334) 3,498 7,045
Finance income 6 2 - 2 5 - 5 10
Finance expenses 5,6 (264) (400) (664) (279) (320) (599) (979)
----------- -------------- ----------- ----------- -------------- ----------- ----------
Profit before
taxation 4,047 (804) 3,243 3,558 (654) 2,904 6,076
Tax
(expense)/income 7,10 (890) 72 (818) (861) 214 (647) (1,287)
----------- -------------- ----------- ----------- -------------- ----------- ----------
Profit for the
period
from continuing
operations 3,157 (732) 2,425 2,697 (440) 2,257 4,789
Discontinued
operations
Loss after
taxation
for the period
from
discontinued
operations 5 - (58) (58) - (393) (393) (748)
Profit for the
period 3,157 (790) 2,367 2,697 (833) 1,864 4,041
=========== ============== =========== =========== ============== =========== ==========
Other
comprehensive
income
Items that will
not
be recycled to
profit
or loss:
Actuarial loss
on
defined
benefit
pensions 2 (4,334) (6,156) (9,350)
Tax on
actuarial loss
on defined
benefit
pensions 815 1,042 1,618
(3,519) (5,114) (7,732)
----------- ----------- ----------
Items that are or
may be recycled
subsequently
to profit or
loss:
Effective
portion
of changes in
fair
value of cash
flow
hedges 34 (75) (70)
Exchange
differences
on
retranslation
of
foreign
operations 20 (16) (19)
Tax on cash
flow hedge (5) 19 20
49 (72) (69)
----------- ----------- ----------
Other
comprehensive
loss for the
period,
net of tax (3,470) (5,186) (7,801)
----------- ----------- ----------
Total
comprehensive
loss for the
period,
net of tax (1,103) (3,322) (3,760)
=========== =========== ==========
Earnings per Pence Pence Pence
share
Basic earnings
per
share
- Continuing
operations 6.8 6.3 13.4
- Discontinued
operations (0.2) (1.1) (2.1)
10 6.6 5.2 11.3
=========== =========== ==========
Diluted earnings
per
share
- Continuing
operations 6.7 6.3 13.3
- Discontinued
operations (0.2) (1.1) (2.1)
10 6.5 5.2 11.2
=========== =========== ==========
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL
POSITION
at 31 December 2014
31 December 31 December 30 June
2014 2013 2014
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 7,457 12,605 12,039
Goodwill 16,488 16,488 16,488
Other intangible assets 2,818 2,857 2,770
Financial asset investments 17 17 17
Deferred tax assets 4,285 3,256 3,584
--------- ------------- -----------
31,065 35,223 34,898
Current assets
Inventories 10,259 13,170 12,523
Biological assets 144 170 171
Trade and other receivables 18,468 19,568 23,693
Cash and cash equivalents 3,205 6,179 2,224
Derivative financial assets 29 50 40
Assets classified as held for
sale 9,799 - -
--------- ------------- -----------
41,904 39,137 38,651
Total assets 72,969 74,360 73,549
--------- ------------- -----------
Liabilities
Non-current liabilities
Interest bearing loans and borrowings (10,918) (13,862) (9,890)
Employee benefits payable (21,418) (15,504) (17,922)
Provisions (954) (628) (1,047)
Deferred tax liabilities (1,267) (1,435) (1,220)
--------- ------------- -----------
(34,557) (31,429) (30,079)
Current liabilities
Trade and other payables (18,966) (23,720) (25,694)
Provisions (681) (366) (221)
Income tax payable (417) (521) (445)
Derivative financial liabilities (34) (73) (68)
Liabilities classified as held
for sale (3,346) - -
--------- ------------- -----------
(23,444) (24,680) (26,428)
Total liabilities (58,001) (56,109) (56,507)
--------- ------------- -----------
Net assets 14,968 18,251 17,042
========= ============= ===========
Equity
Called up share capital 4,517 4,517 4,517
Share premium 445 445 445
Capital reserve - own shares (618) (618) (618)
Hedging reserve (33) (68) (62)
Foreign currency reserve 52 35 32
Profit and loss account reserve 10,605 13,940 12,728
--------- ------------- -----------
Total equity 14,968 18,251 17,042
========= ============= ===========
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
for the half year to 31 December 2014
Half year
Half year to to Year to
31 December 31 December 30 June
2014 2013 2014
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Operating activities
Operating profit 3,905 3,498 7,045
Adjustments for:
Depreciation 525 545 1,175
Amortisation 184 238 381
Gain on disposal of property, plant
and equipment (4) - (3)
Increase in inventories (943) (788) (344)
Decrease/(increase) in biological
assets 27 (7) (8)
(Increase)/decrease in receivables (510) 3,775 306
Decrease in trade and other payables (1,191) (3,273) (1,461)
Movement in provisions 367 (106) 168
Cash contributions to retirement
benefit schemes (1,250) (1,034) (1,992)
Share based payments 27 21 34
------------- ------------- -----------
Cash generated from continuing
operations 1,137 2,869 5,301
Cash generated from discontinued
operations (110) (143) (160)
Tax paid (456) (544) (1,114)
Net cash inflow from operating
activities 571 2,182 4,027
------------- ------------- -----------
Investing activities
Purchase of property, plant and
equipment (587) (738) (1,319)
Payments to acquire intangible
fixed assets (232) (119) (175)
Proceeds from sales of property,
plant and equipment 4 - 10
Acquisition of subsidiary, net
of cash and deferred consideration - (150) (320)
Proceeds from sale of business
activity 1,408 - -
Interest received 2 5 10
Net cash inflow/(outflow) from
investing activities 595 (1,002) (1,794)
------------- ------------- -----------
Financing activities
Interest paid (207) (241) (465)
Equity dividends paid (998) (891) (1,675)
Draw down/(repayment) of amounts
borrowed 1,000 (3,000) (7,000)
Net cash outflow from financing
activities (205) (4,132) (9,140)
------------- ------------- -----------
Net increase/(decrease) in cash
and cash equivalents 961 (2,952) (6,907)
============= ============= ===========
Net cash and cash equivalents brought
forward 2,224 9,147 9,147
Effect of foreign exchange rate
changes 20 (16) (16)
Net cash and cash equivalents carried
forward 3,205 6,179 2,224
============= ============= ===========
Cash and cash equivalents comprise:
Cash and cash equivalents 3,205 6,179 2,224
============= ============= ===========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half year to 31 December 2014
Capital Hedging Foreign Profit
reserve currency and loss
Share Share - account
capital premium own shares reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2014 4,517 445 (618) (62) 32 12,728 17,042
Profit for the period - - - - - 2,367 2,367
Exchange differences on retranslation
of foreign operations - - - - 20 - 20
Net gain on cash flow hedges - - - 34 - - 34
Tax on derivative financial liability - - - (5) - - (5)
Actuarial loss on defined benefit
pension schemes, net of tax - - - - - (3,519) (3,519)
Dividends - - - - - (998) (998)
Share based payments - - - - - 27 27
At 31 December 2014 4,517 445 (618) (33) 52 10,605 14,968
======= ======= ========== ======== ========== ========== =========
Capital Hedging Foreign Profit
reserve currency and loss
Share Share - account
capital premium own shares reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2013 4,517 445 (618) (12) 51 18,060 22,443
Profit for the period - - - - - 1,864 1,864
Exchange differences on retranslation
of foreign operations - - - - (16) - (16)
Net loss on cash flow hedges - - - (75) - - (75)
Tax on derivative financial liability - - - 19 - - 19
Actuarial loss on defined benefit
pension schemes, net of tax - - - - - (5,114) (5,114)
Dividends - - - - - (891) (891)
Share based payments - - - - - 21 21
At 31 December 2013 4,517 445 (618) (68) 35 13,940 18,251
======= ======= ========== ======== ========== ========== =========
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
for the half year to 31 December 2014
1. Basis of preparation
The condensed consolidated interim financial statements 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
2014.
The condensed consolidated interim financial statements have
been prepared using the accounting policies set out in the
statutory accounts for the financial year to 30 June 2014 and in
accordance with IAS34 "Interim Financial Reporting".
The consolidated financial statements of the group as at and for
the year ended 30 June 2014 are available on request from the
company's registered office at Burton Latimer, Kettering,
Northants, NN15 5JP or at the website www.alumasc.co.uk.
The comparative figures for the financial year ended 30 June
2014 are not the company's statutory accounts for that financial
year but have been extracted from those accounts. Those accounts
have been reported on by the company's auditors and delivered to
the registrar of companies. The report of the auditors was (i)
unqualified, (ii) did not include a reference to any matters to
which the auditors drew attention by way of emphasis without
qualifying their report, and (iii) did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006.
The comparative figures for the financial year ended 30 June
2014 and the six month period ended 31 December 2013 have been
re-classified to show APC and Pendock Profiles as discontinued
operations.
The condensed consolidated interim financial statements for the
half year ended 31 December 2014 are not statutory accounts and
have been neither audited nor reviewed by the group's auditors.
They do not contain all of the information required for full
financial statements, and should be read in conjunction with the
consolidated financial statements of the group as at and for the
year ended 30 June 2014.
These condensed consolidated interim financial statements were
approved by the Board of Directors on
3 February 2015.
On the basis of the group's financing facilities and current
financial plans and sensitivity analyses, the Board is satisfied
that the group has adequate resources to continue in operational
existence for the foreseeable future and accordingly continues to
adopt the going concern basis in preparing these condensed
consolidated interim financial statements.
2. Estimates
The preparation of condensed consolidated interim financial
statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and
the reported amount of assets and liabilities, income and expense.
Actual results may differ from these estimates.
Except as described below, in preparing these condensed
consolidated interim financial statements, the significant
judgements made by management in applying the group's accounting
policies and the key sources of estimation uncertainty were the
same as those that applied to the consolidated financial statements
as at and for the year ended 30 June 2014.
During the six months ended 31 December 2014, management
reassessed and updated its estimates in respect of retirement
benefit obligations based on market data available at 31 December
2014. The resulting impact was a GBP4.3 million pre-tax actuarial
loss, calculated using IAS19 conventions, recognised in the six
month period to 31 December 2014.
3. Risks and Uncertainties
A summary of the group's principal risks and uncertainties was
provided on pages 16 and 17 of Alumasc's Report and Accounts 2014.
The Board considers these risks and uncertainties remain relevant
to the current financial year.
As described earlier in the Review of Interim Results Alumasc is
in discussions with a number of trade buyers to sell the Alumasc
Precision Components business. Current expectations are that the
carrying value of the business will be more than recovered on sale.
However, depending on the final outcome agreed, sales proceeds
could potentially be either above or below the book value at 31
December 2014.
4. Segmental analysis
Inter-segment Revenue Segmental
Total Operating
External Result
GBP'000 GBP'000 GBP'000 GBP'000
Half Year to 31 December 2014
Solar Shading & Screening 8,159 - 8,159 386
Roofing & Walling 16,947 - 16,947 2,210
---------- -------------- ---------- -----------
Energy Management 25,106 - 25,106 2,596
Construction Products 8,081 2 8,083 556
Rainwater, Drainage & House Building
Products 11,992 5 11,997 1,416
---------- -------------- ---------- -----------
Water Management & Other 20,073 7 20,080 1,972
Building Products 45,179 7 45,186 4,568
---------- -------------- ---------- -----------
Dyson Diecasting 3,816 122 3,938 338
---------- -------------- ---------- -----------
Engineering Products 3,816 122 3,938 338
Elimination/Unallocated costs - (129) (129) (597)
Total 48,995 - 48,995 4,309
========== ============== ========== ===========
GBP'000
Segmental operating result 4,309
Brand amortisation (134)
IAS 19 pension scheme administration
costs (270)
Total operating profit from continuing
operations 3,905
===========
Inter-segment Revenue Segmental
Total Operating
External Result
GBP'000 GBP'000 GBP'000 GBP'000
Half Year to 31 December 2013 (Restated)
Solar Shading & Screening 9,152 - 9,152 328
Roofing & Walling 13,690 - 13,690 1,078
---------- -------------- ---------- -----------
Energy Management 22,842 - 22,842 1,406
Construction Products 7,618 2 7,620 882
Rainwater, Drainage & House Building
Products 10,203 28 10,231 1,454
---------- -------------- ---------- -----------
Water Management & Other 17,821 30 17,851 2,336
Building Products 40,663 30 40,693 3,742
---------- -------------- ---------- -----------
Dyson Diecasting 4,512 186 4,698 779
---------- -------------- ---------- -----------
Engineering Products 4,512 186 4,698 779
Elimination/Unallocated costs - (216) (216) (689)
Total 45,175 - 45,175 3,832
========== ============== ========== ===========
GBP'000
Segmental operating result 3,832
Brand amortisation (134)
IAS 19 pension scheme administration
costs (200)
Total operating profit from continuing
operations 3,498
===========
Inter-segment Revenue Segmental
Total Operating
External Result
Full Year to 30 June 2014 (Restated)
Solar Shading & Screening 16,339 - 16,339 507
Roofing & Walling 26,927 - 26,927 2,929
-------- -------------- -------- ----------
Energy Management 43,266 - 43,266 3,436
Construction Products 15,534 - 15,534 1,676
Rainwater, Drainage & House Building
Products 21,501 60 21,561 2,865
-------- -------------- -------- ----------
Water Management & Other 37,035 60 37,095 4,541
Building Products 80,301 60 80,361 7,977
-------- -------------- -------- ----------
Dyson Diecasting 8,556 322 8,878 1,120
-------- -------------- -------- ----------
Engineering Products 8,556 322 8,878 1,120
Elimination/Unallocated costs - (382) (382) (1,332)
Total 88,857 - 88,857 7,765
======== ============== ======== ==========
GBP'000
Segmental operating result 7,765
Brand amortisation (268)
IAS 19 pension scheme administration
costs (452)
Total operating profit from continuing
operations 7,045
==========
5. Discontinued operations
a) Results of discontinued operations
Alumasc Pendock Total
Precision Profiles
Components
GBP'000 GBP'000 GBP'000
Half Year to 31 December 2014
Revenue 10,269 785 11,054
------------ ---------- -------
Operating (loss)/profit (1,117) 55 (1,062)
Income tax 246 (12) 234
Gain on disposal of discontinued operation - 770 770
(871) 813 (58)
============ ========== =======
Alumasc Pendock Total
Precision Profiles
Components
GBP'000 GBP'000 GBP'000
Half Year to 31 December 2013
Revenue 10,359 1,688 12,047
------------ ---------- -------
Operating (loss)/profit (737) 218 (519)
Income tax 179 (53) 126
(558) 165 (393)
============ ========== =======
Alumasc Pendock Total
Precision Profiles
Components
GBP'000 GBP'000 GBP'000
Full Year to 30 June 2014
Revenue 21,420 3,125 24,545
------------ ---------- -------
Operating (loss)/profit (1,318) 331 (987)
Income tax 319 (80) 239
(999) 251 (748)
============ ========== =======
b) Effect of disposal on the financial position of the group
Half year
to
31 December
2014
GBP'000
Net consideration received, satisfied
in cash 1,408
Net assets and liabilities sold (638)
Gain on disposal of discontinued
operation 770
============
c) Underlying to statutory profit reconciliation
Continuing Discontinued Total
Operations Operations
GBP'000 GBP'000 GBP'000
Half Year to 31 December 2014
Underlying profit before tax 4,047 - 4,047
IAS19 pension costs (670) - (670)
Brand amortisation (134) - (134)
Alumasc Precision Components - (1,117) (1,117)
Pendock Profiles - 55 55
Pendock Profiles gain on disposal of
discontinued operation - 770 770
Statutory profit/(loss) before tax 3,243 (292) 2,951
Taxation (818) 234 (584)
Statutory profit/(loss) after tax 2,425 (58) 2,367
============ ============= =======
Continuing Discontinued Total
Operations Operations
GBP'000 GBP'000 GBP'000
Half Year to 31 December 2013
Underlying profit before tax 3,558 - 3,558
IAS19 pension costs (520) - (520)
Brand amortisation (134) - (134)
Alumasc Precision Components - (737) (737)
Pendock Profiles - 218 218
Statutory profit/(loss) before tax 2,904 (519) 2,385
Taxation (647) 126 (521)
Statutory profit/(loss) after tax 2,257 (393) 1,864
============ ============= =======
6. Net finance costs
Half year Half year
to to Year to
31 December 31 December 30 June
2014 2013 2014
GBP'000 GBP'000 GBP'000
Finance income - Bank interest (2) (5) (10)
------------ -------------- --------
Finance costs - Bank loans and overdrafts 24 35 68
- Revolving credit facility 240 244 463
264 279 531
- IAS19 net pension scheme finance
costs 400 320 448
664 599 979
------------ -------------- --------
7. Tax expense
Half year Half year
to to Year to
31 December 31 December 30 June
2014 2013 2014
GBP'000 GBP'000 GBP'000
Current tax:
UK corporation tax - continuing
operations 657 602 1,210
- discontinued operations (208) (104) (197)
Overseas tax 2 4 30
Amounts over provided in previous years - - (26)
------------ ------------ ----------
Total current tax 451 502 1,017
Deferred tax:
Origination and reversal of temporary
differences:
* continuing operations 159 120 249
* discontinued operations (26) (22) (42)
Rate change adjustment - (79) (176)
------------ ------------ ----------
Total deferred tax 133 19 31
Total tax expense 584 521 1,048
------------ ------------ ----------
Tax charge on continuing operations 818 647 1,287
Tax credit on discontinued operations (234) (126) (239)
------------ ------------ ----------
Total tax expense 584 521 1,048
------------ ------------ ----------
Tax recognised in other comprehensive
income
Deferred tax:
Actuarial losses on pension schemes (815) (1,042) (1,618)
Cash flow hedges 5 (19) (20)
------------ ------------ ----------
Tax credited to other comprehensive
income (810) (1,061) (1,638)
Total tax credit in the statement of
comprehensive income (226) (540) (590)
------------ ------------ ----------
8. Dividends
The directors have approved an interim dividend per share of
2.5p (2013: 2.2p) which will be paid on 7 April 2015 to
shareholders on the register at the close of business on 6 March
2015. The cash cost of the dividend is expected to be GBP0.9
million. 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 share of 2.8p in respect of the 2013/14 financial year
was paid at a cash cost of GBP1.0 million during the six months to
31 December 2014.
9. Share Based Payments
During the period, the group awarded no options (2013: 170,000)
under the Executive Share Option Scheme ("ESOS"). 164,000 (2013:
136,000) existing ESOS options lapsed during the period.
No awards were granted under the group's Long Term Incentive
Plans ("LTIP") during the period (2013: 289,882). LTIP awards have
no exercise price but are dependent on certain vesting criteria
being met. During the period 259,328 (2013: 290,217) existing LTIP
awards lapsed.
10. 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 following sets out the income and share data used in
the basic and diluted earnings per share calculations:
Half year Half year Year to
to 31 December to 31 December 30 June
2014 2013 2014
GBP'000 GBP'000 GBP'000
Profit attributable to equity holders
of the parent - continuing 2,425 2,257 4,789
Loss attributable to equity holders
of the parent - discontinued (58) (393) (748)
Net profit attributable to equity
holders of the parent 2,367 1,864 4,041
---------------- ---------------- -------------
Half year Half year Year to
to 31 December to 31 December 30 June
2014 2013 2014
000s 000s 000s
Basic weighted average number of
shares 35,648 35,648 35,648
Dilutive potential ordinary shares
- employee share options 546 - 447
Diluted weighted average number of
shares 36,194 35,648 36,095
---------------- ---------------- -------------
Calculation of underlying earnings per share:
Half year Half year Year to
to 31 December to 31 December 30 June
2014 2013 2014
GBP'000 GBP'000 GBP'000
Reported profit before taxation from
continuing operations 3,243 2,904 6,076
Add: brand amortisation 134 134 268
Add: IAS19 pension scheme administration
costs 270 200 452
Add: IAS19 net pension scheme finance
costs 400 320 448
Underlying profit before taxation 4,047 3,558 7,244
Tax at underlying group rate of 22.0%
(2013: 24.2%; 2013/14: 24.2%) (890) (861) (1,753)
---------------- ---------------- -------------
Underlying earnings 3,157 2,697 5,491
---------------- ---------------- -------------
Underlying earnings per share 8.9p 7.6p 15.4p
---------------- ---------------- -------------
11. Related party disclosure
The group has a related party relationship with its directors
and with its UK pension schemes. There has been no material change
in the nature of the related party transactions described in the
Report and Accounts 2014. Related party information is disclosed in
note 30 of that document.
Responsibility Statement
The Directors confirm that, to the best of their knowledge:
a) the condensed consolidated interim financial statements have
been prepared in accordance with IAS34 "Interim Financial
Reporting" as adopted by the EU; and
b) the interim management report includes a fair review of the
information required by:
-- DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed
set of financial statements; and a description of the principal
risks and uncertainties for the remaining six months of the year;
and
-- DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the group during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
On behalf of the Board
G P Hooper A Magson
Chief Executive Group Finance Director
This information is provided by RNS
The company news service from the London Stock Exchange
END
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