Alumasc Group PLC Trading Statement (6253H)
March 14 2018 - 3:00AM
UK Regulatory
TIDMALU
RNS Number : 6253H
Alumasc Group PLC
14 March 2018
IMMEDIATE RELEASE 14 March 2018
The Alumasc Group plc (ALU.L) ("Alumasc" or the "group")
Trading Statement
Alumasc has so far experienced a slower than expected third
quarter performance, both in terms of revenue and order intake. The
principal reasons are macro-economic and industry specific:
-- continuing delays in building contractor customers committing
to new work following recent margin pressures, exacerbated in
January by the insolvency of Carillion and the consequential impact
across the industry;
-- broader economic and political uncertainties impacting demand
particularly in the commercial new build sector, with recent
reports of construction output in this sector showing decline;
-- delays to public housing refurbishment contracts in Scotland; and
-- severe winter weather over the last few weeks.
These issues have had an impact particularly on Levolux's UK
Solar Shading business, the Roofing & Walling division and the
Gatic business within the Water Management division. It is likely
that the first three of these factors will also impact the group's
final quarter performance.
In contrast, areas where Alumasc's products and systems are sold
via building distribution channels continue to perform well, with
revenue growth remaining ahead of UK construction market growth at
Alumasc Water Management Solutions, Rainclear and Timloc.
In view of all the above, the Board's latest forecasts are that
group revenues for the year ending 30 June 2018 will be 4-5% below
previous expectations, with a consequential reduction in previously
expected underlying profit before tax of around 15%.
The integration of Wade, the specialist drainage business
acquired by Alumasc on 1 February 2018, is progressing well and the
Board believes that potential synergies as part of Alumasc's
broader Water Management division and its "rain to drain" strategy
are significant.
Whilst Alumasc is not immune to current market headwinds, there
have been numerous positive strategic developments across the group
over the last year that make Alumasc well positioned to continue
its recent underlying growth trajectory over the medium to longer
term. The level of specifications and the value of pre-order
pipelines remain strong across the group, particularly Levolux's
relatively new business streams of North American Solar Shading
& Screening and UK Balconies & Balustrading where market
share is growing rapidly from a low base.
The Board continues to have confidence in the future growth
prospects of the group in view of:
-- The strategic positioning of our businesses in specialist growth markets;
-- The consistent investment in recent years in growth resources
and additional capacity, including the successful commissioning of
the new Timloc factory in January;
-- Levolux and Alumasc Water Management's potential to further develop export markets; and
-- The recent acquisition of Wade, a high-quality business with
development and synergy potential.
Enquiries:
The Alumasc Group plc
Paul Hooper (Chief Executive) 01536 383821
Andrew Magson (Finance Director) 01536 383844
Glenmill Partners Limited
Simon Bloomfield 07771 758514
This information is provided by RNS
The company news service from the London Stock Exchange
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