REG - Alumasc Group Plc - AGM Trading Update

AlumascAnnouncement

26/10/2023 07:00

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RNS Number : 3020R  Alumasc Group PLC  26 October 2023

26 October 2023

THE ALUMASC GROUP PLC

('Alumasc' or 'the Group')

AGM Trading Update

Resilient performance, full year expectations unchanged

Alumasc, the premium sustainable building products, systems and solutions
group, provides the following trading update ahead of its Annual General
Meeting, to be held this morning at 10am:

The Group is pleased to report that, despite well-publicised market headwinds,
trading has remained resilient, and performance in the first quarter of the
financial year ending 30 June 2024 has been in line with the Board's
expectations.

As expected, demand remains subdued in a number of construction sectors,
particularly in new build residential. Offsetting this, the Group has seen an
increase in overseas sales, including a resumption in deliveries to the Chek
Lap Kok airport expansion project in Hong Kong. Demand for new  products
launched in the Housebuilding Products division in the last eighteen months
has also been robust, helping to mitigate the general slowdown in new
housebuilding activity.

The Group continues to invest prudently in areas which enhance revenue growth
and improve customer service, operational capability, efficiency and new
product development. The Group also continues to manage costs carefully while
market conditions in some parts of our business remain subdued, and management
have restructured the commercial and sales teams in the Water Management
division. This will deliver annualised savings of around £0.8m, while
simplifying the management structure and improving capability and customer
service.

The Group continues to engage with the Competition and Markets Authority on
its proposed acquisition of ARP Group, announced on 23 July 2023, and expects
this process to conclude during December 2023.

The Group's balance sheet remains strong, with good cash generation in the
first three months of the new financial year, supported by management's focus
on working capital.

As noted, the Board is mindful of the current demand headwinds, however it
remains confident in the resilience of the Group's business model and
management's ability to take effective action to reduce costs where necessary.
Consequently their expectations for the year ending 30 June 2024 remain
unchanged.

Paul Hooper, Chief Executive of Alumasc, commented:

"I am pleased with the Group's performance, in challenging trading conditions.
Our excellent customer service and leading positions in a diverse range of end
markets provide resilience, and we are continuing to progress our strategy,
investing in areas where we see growth opportunities while controlling costs
prudently where appropriate. With a strong balance sheet and a product
portfolio which delivers environmental benefits to our customers, we remain
well positioned to benefit from the eventual recovery in our end markets."

 

 

Enquiries:

 The Alumasc Group plc                                                                        +44 (0)1536 383844
 Paul Hooper (Chief Executive)
 Simon Dray (Group Finance Director)

 Peel Hunt LLP (Broker)                                                                       +44 (0)207 418 8831
 Mike Bell
 Ed Allsopp

 Cavendish Capital Markets Ltd (Nominated Adviser)                                            +44 (0)207 220 0561
 Julian Blunt
 Edward Whiley

 Camarco (Financial PR)
 Ginny Pulbrook                                                                               +44 (0)203 757 4992
 Rosie                                                                                        +44 (0)203 757 4981
 Driscoll
                                                                                              Email: alumasc@camarco.co.uk

 

 

 Notes to Editors:

1      Alumasc is a UK-based supplier of premium sustainable 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.

2      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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