REG - Alumasc Group Plc - Full Year Trading Update

AlumascAnnouncement

20/07/2023 07:00

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RNS Number : 5094G  Alumasc Group PLC  20 July 2023

 20 July 2023

The Alumasc Group plc

("Alumasc" the "Group", or the "Company")

Full Year Trading Update

On track to deliver FY 2023 results in line with expectations

Alumasc, the sustainable building products, systems, and solutions group,
provides a pre-close trading update for the year ended 30 June 2023, ahead of
publishing its FY 2023 results on 5 September 2023.

Full year profitability in line with market expectations

Despite a challenging UK construction sector backdrop through recent months,
the Board is pleased to report that the Group has further demonstrated its
resilience with a robust commercial and operational performance in the second
half. As a result, the Group expects to report revenue from continuing
operations of approximately £89m, in line with the prior year and underlying
profit before tax(1) from continuing operations in line with Board and market
expectations(2). The Company's continued focus on customer service and new
product development, when combined with cost management and a focus on driving
operational efficiencies, enabled Alumasc to grow in several of its commercial
markets through share gains and adjacent product launches. This was achieved
despite demand weakness in new build residential markets and the delays to a
small number of overseas projects.

Operating free cash flow generation in the second half improved relative to
the first half, as working capital and inventory levels normalised, offset
against higher capital expenditure in the fourth quarter. At the year end,
pre-IFRS 16 net debt is expected to be approximately £3m, representing a
leverage multiple of 0.2x EBITDA.

Current trading and outlook

The Board anticipates continued demand headwinds for the remainder of the 2023
calendar year, although these should be partly mitigated by contributions from
the delayed overseas projects, which are now expected to commence later in the
year. The Board remains confident in the Group's medium and long-term
prospects within its commercial end markets, and continues to invest in sales
and customer service, product development capability and operational
efficiency projects.

With the majority of revenues directly linked to sustainability benefits to
its customers, and operating in fragmented niche markets providing growth
opportunities, the Group remains well positioned to deliver long term
shareholder value, which will be accelerated when market conditions improve.

 

(1) Underlying profit before tax is calculated before amortisation of
intangible assets, IAS19 pension costs and non-recurring restructuring and
relocation costs.

(2) Company compiled market forecasts as at 20 July 2023 is for FY 2023
revenue within the range of £89.7m and £91.0m with a consensus of £90.4m
and underlying profit before tax from continuing operations within the range
of £11.15m to £11.3m, with a consensus of £11.2m.

 

END

 

Enquiries:

The Alumasc Group plc

Paul Hooper (Chief
Executive)
+44 (0)1536 383844

Simon Dray (Group Finance Director)

 

Peel Hunt
(Broker)

Mike
Bell
+44 (0)207 418 8831

Ed
Allsopp

 

finnCap (Nominated Adviser)

Julian
Blunt
+44 (0)207 220
0561

 

Camarco:

Ginny Pulbrook
    +44 (0)203 757 4992

Rosie
Discroll
+44 (0) 203 757 4981

 
alumasc@camarco.co.uk (mailto:alumasc@camarco.co.uk)

 

LEI: 2138002MV11VKZFJ4359

 

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: Building Envelope; Water
Management; and Housebuilding Products.

 

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