Alumasc Group PLC Interim Management Statement (6449V)
October 30 2014 - 3:00AM
UK Regulatory
TIDMALU
RNS Number : 6449V
Alumasc Group PLC
30 October 2014
Thursday 30 October 2014
THE ALUMASC GROUP PLC ("ALUMASC" OR THE "GROUP")
INTERIM MANAGEMENT STATEMENT
Alumasc, the premium building and engineering products company,
is publishing its first interim management statement for the year
ending 30 June 2015 covering the period from 1 July 2014 to date,
ahead of its Annual General Meeting being held in London at 10.30am
today.
Overall, trading to date has been in line with the Board's
expectations. Group revenues from continuing operations(1) are
ahead of prior year to date levels by some 5%, with Building
Products divisional revenues up by 9% and Engineering Products
divisional revenues lower by 10%. Cash generation remains strong
and the group's overall cash flow performance is in line with our
expectation.
The Building Products division continues to benefit from
improving market demand, the introduction of new products and
steady export market penetration. Our roofing and walling
businesses, in particular, have had a much better than expected
start to the year, building on the positive ongoing momentum in our
rainwater, drainage and house building products businesses. In view
of these trends, the Board anticipates that the Building Products
divisional performance for the full financial year will be stronger
than envisaged at the beginning of the year.
In the Engineering Products division, Alumasc Precision
Components (APC) has continued to operate at broadly EBITDA
break-even from lower sales, reflecting the managed exit from loss
making work over the last year and cost saving initiatives.
Recently, we were informed by a European customer that replacement
work on a new engine variant will not be awarded to APC and
negotiations to settle the final account are ongoing. Meanwhile,
Dyson Diecastings continues to trade in line with expectations.
Therefore, whilst still relatively early in the financial year,
the Board remains positive on prospects for the year as a whole in
view of the encouraging start from the majority of our
businesses.
As part of its strategic review announced in September, the
Board has concluded that APC, which competes in a global market
supplying large international OEMs, no longer fits Alumasc's growth
strategy. Therefore we are in the early stages of exploring
opportunities to sell the business. Dyson Diecastings, which
remains a strong business operating independently from APC, will be
unaffected.
This strategic decision will enable Alumasc to focus its
management and financial resources on accelerating the growth and
development of the group's successful building products activities,
with the objective of creating better value for shareholders in the
medium term.
Note 1: Revenues from continuing operations in both the current
and prior year have been adjusted to exclude Pendock, the non-core
building products business sold by Alumasc on 30 September
2014.
END
Enquiries:
The Alumasc Group plc:
Paul Hooper (Group Chief Executive) Tel: 01536 383821
Andrew Magson (Group Finance Director) Tel: 01536 383844
Glenmill Partners Limited:
Simon Bloomfield Tel: 07771 758517
This Interim Management Statement has been drawn up and
presented for the purposes of complying with English law. Any
liability arising out of or in connection with this Interim
Management Statement will also be determined in accordance with
English law.
This Interim Management Statement may contain 'forward-looking
statements'. By their nature, forward-looking statements involve
risk and uncertainty because they relate to future events and
circumstances. Many of these risks and uncertainties relate to
factors beyond The Alumasc Group's control or which cannot be
estimated precisely, such as future market conditions and the
behaviour of the market participants. Actual outcomes and results
may therefore differ materially from any outcomes or results
expressed or implied by any such forward-looking statements.
Nothing in this Interim Management Statement is intended to be a
profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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