Alumasc Group PLC Trading Statement (0821M)
January 19 2021 - 2:00AM
UK Regulatory
TIDMALU
RNS Number : 0821M
Alumasc Group PLC
19 January 2021
19 January 2021
THE ALUMASC GROUP PLC
("ALUMASC")
TRADING UPDATE FOR SIX MONTHS ENDED 31 DECEMBER 2020
Alumasc, the premium building products, systems, and solutions
Group, today provides a trading update for the six months ended 31
December 2020, ahead of publication of its half-year results on
Thursday 4 February 2021.
Our absolute focus continues to be the safety of our employees,
customers, suppliers, and sub-contractors as we continue to manage
with the Covid-19 pandemic and the latest lockdown guidelines.
Record Half Year Performance
Further to our AGM Trading Update on 22 October 2020, which
reported a strong performance in the first quarter, we are very
pleased to report that conditions in our markets have remained
positive and that the Group's trading performance has continued
through to the end of the first half of the financial year, with a
record profit for the period being achieved. On an unaudited basis,
for the first six months of the year:
-- Revenue increased 11% versus the prior year to GBP45.6m
-- Underlying PBT increased significantly, from GBP2.3m to GBP6.0m
-- Cash generation has also been strong in the first half, with
net bank debt reducing from GBP4.3m at 30 June 2020 to GBP0.2m at
31 December 2020.
Pleasingly, all our divisions have contributed to the strong
performance. While trading in the period includes an element of
catch-up demand following the UK's first national lockdown and has
benefitted from a range of Government support for the construction
industry, our businesses have also been successful in winning
market share and have been further supported by encouraging export
sales. Additionally, the restructuring during FY2020, which
provided GBP2.4 million in annual cost savings, benefitted margins.
Levolux also continues to respond well to the business's turnaround
plan, achieving a profit in each month of the first half of this
financial year.
Outlook
The business has entered H2 with good momentum, a healthy
forward sales position, and a well-capitalised balance sheet,
creating the potential to deliver a strong result for the year.
Nevertheless, we remain mindful of the continued economic
uncertainties, particularly the risk of disruption to our business
and markets in the near term as a result of the on-going pandemic
and the establishment of efficient cross-border goods movement
following the entry into the Free Trade Agreement with the EU.
Conditions in our markets, particularly in the new build housing
and RMI sectors, have been very supportive coming into the second
half and we would anticipate demand remaining good through the
coming months. We are also continuing to monitor the potential
impact of changes to UK Government incentives within the
housebuilding industry, notably around the current Help to Buy
Scheme being extended beyond 28 February 2021 and Stamp Duty and
changes here may affect our final quarter, albeit the potential
impact is difficult to predict. However, we are encouraged by the
UK's accelerating rollout of vaccines and mass testing, which
should provide some counterbalance in our markets. Overall, this
has been a most encouraging performance by Alumasc in the first
half and there is an excellent platform to deliver sustainable
shareholder value.
Paul Hooper, CEO, commented, "It is very encouraging to see
Alumasc's achievement of a double digit growth in revenues and also
a double digit return on sales and H1 has absolutely shown the
great potential for the Group. In light of the businesses' momentum
and strong cash conversion, a resumption of Alumasc's previous
dividend policy is being considered by the Board."
This announcement contains inside information.
Enquiries:
Paul Hooper, CEO + 44 (0) 1536 383844
Helen Ashton, Group Company Secretary + 44 (0) 1536 383812
Peel Hunt (Broker)
Mike Bell + 44 (0)207 418 8831
finnCap (NOMAD)
Julian Blunt + 44 (0)207 220 0561
Camarco:
Ginny Pulbrook + 44 (0)203 757 4992
Tom Huddart + 44 (0)203 757 4991
Email: alumasc@camarco.co.uk
Notes to Editors:
Alumasc is a UK-based supplier of premium building products,
systems and solutions. Almost 80% of group sales are driven by
building regulations and specifications (architects and structural
engineers) because of the performance characteristics offered.
The Group has three business segments with strong positions and
brands in their individual markets. The three segments are: Water
Management; Building Envelope; and Housebuilding Products.
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END
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