Profit warning from Alumasc (LON:ALU) this morning. As expected the lowly rated share price has been caned. The company quantifies the effect of the profit warning citing a 5% reduction in revenue and 15% reduction in profit before tax. I am not sure but my best guess is that this translates into EPS of 17p for the year to June 2018. There is also a post tax pension deficit of £17.1m as at the recent interim results.

The dilemma now is whether to sell or sit tight. Stockopedia research suggests the former. Alumasc appears to well managed and the reasons for the profit warning are creditable. On top of which directors hold about 20% of the equity.

All thoughts and observations welcome.


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