REG - Alumasc Group Plc - Half Yearly Report <Origin Href="QuoteRef">ALUG.L</Origin> - Part 1

AlumascAnnouncement

02/02/2016 07:10

RNS Number : 7066N
Alumasc Group PLC
02 February 2016
IMMEDIATE RELEASE
2 February 2016
THE ALUMASC GROUP PLC - INTERIM RESULTS ANNOUNCEMENT
Alumasc (ALU.L), the premium building and engineering products group, announces interim results for the six months ended 31 December 2015. 
Half year financial highlights
Half year to 31 December
2015
2014
% change
Continuing operations:
Order book at 31 December (m)
27.4
19.2
+42%
Revenue (m)
43.5
45.2
-4%
Underlying profit before tax (m)*
4.0
3.7
+8%
Underlying earnings per share (pence)*
8.9
8.1
+10%
Profit before tax (m)
3.2
2.9
+12%
Total group (including discontinued operations):
Basic earnings per share (pence)
7.6
6.6
+15%
Dividends per share (pence)
2.7
2.5
+8%
Net cash/(debt) at 31 December (m)
0.5
(7.7)
* Underlying profits and earnings per share from continuing operations are stated prior to the deduction of brand amortisation charges of 0.1 million (2014: 0.1 million) and IAS19 pension costs of 0.7 million (2014: 0.7 million).
Key points 
 Alumasc's strategy is to focus on premium Building Products & Solutions and the Board believes there are numerous exciting organic and synergistic growth opportunities to capitalise on Alumasc's market leading positions in niche segments.
 In line with this strategic goal and further to last year's disposal of loss-making APC, the Board has initiated a process for the disposal of Dyson Diecastings, the group's last remaining Engineering Products business.
 Excluding two exceptionally large projects (Kitimat and Chiswick Park) completed last year, Building Products achieved 4% growth in underlying revenues with operating margins up to 10.8%, enabling divisional operating profit to rise 3% to 4.7m. 
 Building Products order books rose to 27.4m at 31 December 2015 (30 June 2015: 24.0m; 31 December 2014: 19.2m). Most of the increase relates to Levolux and will benefit the group's 2016/17 financial year and beyond. 
 Solar Shading & Screening saw Levolux establish a sustainable and growing business in North America and its UK business is being expanded to supply bespoke balconies to prestigious housing and commercial developments. Levolux's order book increased 28% to 19.9m. Financial performance as expected with operating profit up 20% to 462k on sales down 7% to 7.6m. 
 Roofing & Walling revenue down 12% to 18.4m, in part reflecting last year's Kitimat project. Performance earlier in the financial year was impacted by delays to refurbishment projects caused by short-term factors in the wider contractual chain. The reduction in Green Deal funding is being offset by developing new build business including the Alumasc Ventilated System. Operating profit down 32% to 1.8m. 
 Water Management operating profit up 64% to 1.9m on revenue up 8% to 14m with financial performance benefiting from the holistic approach to sales and customer service following the introduction of AWMS last July. Particularly strong performances came from Alumasc Rainwater and Gatic Slotdrain in domestic markets; new products (including Gatic Filcoten and Harmer SML Below Ground); and Gatic access covers, including some recovery of demand in South-East Asia. Relocation to new site in Kettering delayed 6 to 12 months. 
 Housebuilding & Ancillary Products operating profit up 33% to 573k on revenue up 9% to 4.1m. Timloc delivered another record first half performance and, in order to facilitate future growth, will relocate to new leased premises in the Goole area over the next 12 to 18 months.
Paul Hooper, Chief Executive, commented:
"Alumasc is pleased to announce earnings growth for the fourth consecutive first half year.
With the group expected to benefit from its normal seasonal trading bias in favour of the second half of the financial year, the Board's previous expectations for the group's full year performance remain unchanged.
Against a background of further UK growth in demand for premium building products for sustainable building, and with growing order books and continuing success in developing our overseas presence, Alumasc is well positioned to make further progress beyond this financial year." 
Enquiries:
The Alumasc Group plc
01536 383844
Paul Hooper (Chief Executive)
Andrew Magson (Finance Director)



Glenmill Partners Limited
07771 758517 
Simon Bloomfield 
REVIEW OF INTERIM RESULTS
Overview and highlights
Alumasc is pleased to announce earnings growth for the fourth consecutive first half year:
 Underlying earnings per share from continuing operations advanced by 10% to 8.9 pence per share (2014: 8.1 pence) and basic earnings per share grew by 15% to 7.6 pence (2014: 6.6 pence).
 These improved results were driven by continued profitable growth in Alumasc's water management and housebuilding products businesses, lower financing charges and the successful disposal of the loss making Alumasc Precision Components business in June 2015.
 Cash remains well controlled and the group continues to be free of any net indebtedness. Net cash at 31 December 2015 was 0.5 million (30 June 2015: net cash of 0.9 million; 31 December 2014 net debt of 7.7 million).
 Building products order books rose to 27.4 million at 31 December 2015 (30 June 2015: 24.0 million; 31 December 2014: 19.2 million). Most of the increase relates to Levolux and will benefit the group's 2016/17 financial year and beyond.
 In view of all the above, the Board has decided to increase the interim dividend by 8% to 2.7 pence per share (2014: 2.5 pence). 
Strategic development
The group's strategy for future growth is to position Alumasc as a focused supplier of premium building products and solutions, particularly those which add value in conserving and managing the scarce resources of energy and water in the built environment. The Board believes there are numerous exciting organic and synergistic growth opportunities which have been identified to capitalise on Alumasc's market leading positions in niche segments.
In line with this strategic goal, and further to the successful disposal of Alumasc Precision Components last summer, the Board has initiated a sale process for the group's last remaining Engineering Products business, Dyson Diecastings ("Dyson"). Accordingly, Dyson has been treated as a discontinued operation in this interim statement.
Operating Review
(a) Continuing operations - Building products
UK demand for Alumasc's building products continues to grow. While headline divisional revenues were 4% lower than in the first half of the prior year at 43.5 million, order books grew from 24.0 million to 27.4 million in the period under review. We also continue to develop export markets. Reported revenues for the half year reflect the non-repeat of the two exceptionally large projects, Kitimat and Chiswick Park building 7 ("CP7"), that benefited the first half of the previous financial year, and delays to a number of projects in our roofing and walling business. When Kitimat and CP7 are excluded from prior period comparators, our remaining building products revenues were ahead on a like-for-like basis by around 4%.
Divisional operating margins improved to 10.8% compared to 10.1% in the first half of the last financial year, reflecting a combination of the resolution of the operational and capacity issues described in this report a year ago and the benefit of operational gearing following further growth in our water management and housebuilding products businesses. This enabled divisional operating profits to grow by 3% to 4.7 million.
Solar shading and screening
Levolux's principal achievements in the first half of the financial year were the delivery of a substantial increase in its order book, further establishing a sustainable and growing business in North America and developing an exciting business to supply bespoke balconies to prestigious housing and commercial developments. The order book grew from 15.6 million at 30 June 2015 to 19.9 million at 31 December 2015, and order intake over the last 12 months of 23.0 million has been higher than that ever previously achieved by the business and significantly higher than revenues over the last twelve months of 15.4 million. Some 11.4 million of the order book is expected to convert into revenue in the 2016/17 financial year and beyond, including the 3 million project announced in October to screen a power plant on the eastern seaboard of the USA, Levolux's largest order so far in North America. The developing balconies business is complementary to the existing solar shading and control business, building on Levolux's strengths of design, project management and delivery whilst leveraging existing sales channels and supply chains. 
In the absence of work on any large projects in the period under review, Levolux's trading performance in the first half of this financial year was satisfactory, delivering slightly higher profits from slightly lower revenues when compared to the same period a year ago, reflecting good project execution and a higher number of project completions in the period under review. 
Roofing & walling
These businesses again performed strongly by historical standards. However, as expected, it was not possible to improve on last year's record results in the absence of a replacement for the large Kitimat smelter refurbishment contract in Canada. Performance in the earlier part of the financial year was affected by delays to a number of refurbishment projects caused by short-term factors in the wider contractual chain beyond Alumasc's control. Alumasc Facades is also being impacted by lower housing refurbishment work in England and Wales as Green Deal funding comes to an end and therefore continues to develop its new build business. Specification banks for the recently launched Alumasc Ventilated System are promising and continue to grow.
Water Management
Alumasc's water management businesses grew both revenues and profits strongly, including benefiting from the more holistic approach to sales and customer service following the introduction of the Alumasc Water Management Solutions ("AWMS") umbrella brand last July. In particular, there were strong performances from Alumasc Rainwater and a much better first half than last year in domestic markets for Gatic Slotdrain. New products introduced during the period, including Gatic Filcoten and Harmer SML Below Ground, performed well and these should continue to gain traction. In addition, Gatic's access covers business performed well, including some recovery of demand in South-East Asia. 
Plans to relocate Alumasc's rainwater & drainage businesses to a new site in the Kettering area have been delayed by 6 to 12 months due to issues with the initially preferred relocation site. A number of alternative options are being evaluated.
Housebuilding & ancillary products
Timloc delivered another record first half performance, benefiting from growing demand, an expanding product range and operational efficiencies. Further new products that will enable us to leverage existing sales channels are being planned for launch later in the year. As part of previously announced plans to facilitate future growth, Timloc will relocate to new leased premises in the Goole area over the next 12 to 18 months. 
(b) Discontinued operation - Dyson Diecastings
This was a difficult period for UK based die-casters supplying international OEMs in automotive and off highway diesel markets, characterised by slowing growth rates in developing markets, impacting the construction and mining equipment sub-sectors in particular and resulting in significant customer de-stocking. Against this background, Dyson, with its diversified customer base and focus on precision engineered, smaller die-cast and machined parts for niche applications, performed relatively well, with half year revenues down by 11% to 3.5 million and operating profits lower by 0.1 million at 0.2 million. The recently strengthened management team continues to develop opportunities for new work, whilst improving operational efficiencies. 
In view of the success of Alumasc's strategy to increase its focus on building products activities over recent years and the successful sale last year of Alumasc Precision Components, Dyson's sister business, the Board believes that Dyson's future would be better served under different ownership. Accordingly, this business is now being actively marketed for sale. 
Cash flow, pensions and balance sheet
Cash management in Alumasc continues to be a key area of focus, and the group ended 2015 with net cash resources of 0.5 million (30 June 2014: net cash of 0.9 million; 31 December 2014: net debt of 7.7 million). There was a modest net cash outflow of 0.5 million in the six months to 31 December 2015 reflecting some investment in working capital to support anticipated growth and the purchase of 0.4 million of Alumasc shares by the group's employee share trust. Capital expenditure of 0.8 million in the period related mainly to routine replacement of assets and the completion of work on new business systems at Levolux and Timloc, both of which were successfully introduced in the period. The lower average level of net debt experienced in the half year under review resulted in a reduction in the group's interest costs on borrowings to 0.1 million from 0.3 million in the first six months of the prior financial year. Given the delay to the investment in the new Kettering property described above, the group is now unlikely to incur any significant net indebtedness for another 12 months.
The group's pension deficit measured for accounting purposes under IAS19 was 19.5 million at 31 December 2015, an improvement on the 30 June 2015 position of 20.9 million mainly due to lower long term inflation expectations. The deficit remains high by historical standards due to continued low discount rates that are used to discount future pension payments into present values. The company's current obligations to make deficit funding contributions to its legacy defined benefit pension schemes will be re-assessed following the forthcoming triennial valuation due in March 2016. 
There have been no significant changes to the group's balance sheet in the period under review. Shareholders' funds increased over the six months to 31 December 2015 to 17.3 million from 15.9 million at 30 June 2015, mainly reflecting retained post tax profits.
Outlook
With the group expected to benefit from its normal seasonal trading bias in favour of the second half of the financial year, the Board's previous expectations for the group's full year performance remain unchanged.
More broadly, against a background of further UK growth in demand for premium building products for sustainable building, and with growing order books and continuing success in developing our overseas presence, Alumasc is well positioned to make further progress beyond this financial year.
Paul Hooper, Chief Executive
2 February 2016

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
for the half year to 31 December 2015
Half year to 31 December 2015
Half year to 31 December 2014
Year to 30 June 2015
(Unaudited)
(Unaudited)
(Audited)
Continuing operations:
Notes
'000
'000
'000

 Revenue
4
43,468
45,179
90,295
 Cost of sales
(28,904)
(31,104)
(60,741)
 Gross profit
14,564
14,075
29,554
 Net operating expenses
(10,849)
(10,508)
(21,963)
 Operating profit
4
3,715
3,567
7,591
 Finance income
6
-
2
5
 Finance expenses
6
(473)
(664)
(1,308)
 Profit before taxation
3,242
2,905
6,288
 Tax expense
8
(663)
(744)
(1,483)
 Profit for the period
2,579
2,161
4,805
Discontinued operations:
Profit/(loss) after taxation for the period from discontinued operations
5
132
206
(429)
Profit for the period
2,711
2,367
4,376
Other comprehensive income
Items that will not be recycled to profit or loss:
Actuarial gain/(loss) on defined benefit pensions
2
542
(4,334)
(4,726)
Tax on actuarial (gain)/loss on defined benefit pensions
(517)
815
945
25
(3,519)
(3,781)
Items that are or may be recycled subsequently to profit or loss:
Effective portion of changes in fair value of cash flow hedges
170
34
(179)
Exchange differences on retranslation of foreign operations
(4)
20
17
Tax on cash flow hedge
(35)
(5)
43
131
49
(119)
Other comprehensive profit/(loss) for the period, net of tax
156
(3,470)
(3,900)
Total comprehensive profit/(loss) for the period, net of tax
2,867
(1,103)
476
Earnings per share
Pence
Pence
Pence
Basic earnings per share
- Continuing operations
7.2
6.0
13.5
- Discontinued operations
0.4
0.6
(1.2)
11
7.6
6.6
12.3
Diluted earnings per share
- Continuing operations
7.0
5.9
13.3
- Discontinued operations
0.4
0.6
(1.2)
11
7.4
6.5
12.1
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
at 31 December 2015




31 December
31 December
30 June




2015
(Unaudited)
2014
(Unaudited)
2015
(Audited)




'000
'000
'000
Assets






Non-current assets





Property, plant and equipment

5,310
7,457
7,473
Goodwill



16,488
16,488
16,488
Other intangible assets

2,802
2,818
2,831
Financial asset investments


17
17
17
Deferred tax assets


3,509
4,285
4,187




28,126
31,065
30,996
Current assets





Inventories


9,639
10,259
10,592
Biological assets

47
144
75
Trade and other receivables

14,915
18,468
20,317
Cash and cash equivalents

5,404
3,205
5,914
Derivative financial assets

-
29
-
Assets classified as held for sale

3,978
9,799
-




33,983
41,904
36,898





Total assets


62,109
72,969
67,894






Liabilities





Non-current liabilities




Interest bearing loans and borrowings

(4,893)
(10,918)
-
Employee benefits payable

(19,492)
(21,418)
(20,935)
Provisions



(1,129)
(954)
(1,224)
Deferred tax liabilities

(415)
(1,267)
(390)




(25,929)
(34,557)
(22,549)
Current liabilities





Interest bearing loans and borrowings

-
-
(5,000)
Trade and other payables

(16,832)
(18,966)
(23,338)
Provisions



(396)
(681)
(402)
Corporation tax payable


(574)
(417)
(429)
Derivative financial liabilities

(77)
(34)
(247)
Liabilities classified as held for sale

(1,018)
(3,346)
-




(18,897)
(23,444)
(29,416)







Total liabilities


(44,826)
(58,001)
(51,965)







Net assets


17,283
14,968
15,929







Equity






Called up share capital

4,517
4,517
4,517
Share premium


445
445
445
Capital reserve - own shares

(968)
(618)
(618)
Hedging reserve


(63)
(33)
(198)
Foreign currency reserve


45
52
49
Profit and loss account reserve


13,307
10,605
11,734
Total equity


17,283
14,968
15,929

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
for the half year to 31 December 2015



Half year to
Half year to
Year to



31 December
31 December
30 June




2015
(Unaudited)
2014
(Unaudited)
2015
(Audited)




'000
'000
'000
Operating activities





Operating profit 

3,715
3,567
7,591
Adjustments for:





Depreciation


431
433
905
Amortisation

194
184
332
Gain on disposal of property, plant and equipment

(3)
(4)
(14)
Decrease/(increase) in inventories

129
(880)
(1,216)
Decrease in biological assets

28
27
96
Decrease/(increase) in receivables

3,936
(597)
(1,963)
(Decrease)/increase in trade and other payables

(4,944)
(809)
2,510
Movement in provisions

(101)
367
358
Cash contributions to retirement benefit schemes

(1,250)
(1,250)
(2,500)
Share based payments

123
27
300
Cash generated from continuing operations



2,258
1,065
6,399







Operating profit/(loss) from discontinued operations

167
(724)
(896)
Depreciation and amortisation



70
506
1,050
Movement in working capital from discontinued operations

26
180
526
Cash generated/(absorbed) from/(by) discontinued operations

263
(38)
680







Tax paid



(401)
(456)
(907)
Net cash inflow from operating activities

2,120
571
6,172






Investing activities





Purchase of property, plant and equipment

(617)
(587)
(1,114)
Payments to acquire intangible fixed assets

(160)
(232)
(322)
Proceeds from sales of property, plant and equipment

18
4
60
Proceeds from sale of business activity

-
1,408
6,168
Interest received

-
2
5
Net cash (outflow)/ inflow from investing activities

(759)
595
4,797






Financing activities





Interest paid


(112)
(207)
(408)
Equity dividends paid


(1,248)
(998)
(1,889)
Draw down of amounts borrowed

5,000
1,000
-
Repayment of amounts borrowed

(5,000)
-
(5,000)
Refinancing costs

(119)
-
-
Purchase of own shares

(388)
-
-
Net cash outflow from financing activities

(1,867)
(205)
(7,297)







Net (decrease)/increase in cash and cash equivalents 
 
(506)
961
3,672







Net cash and cash equivalents brought forward
5,914
2,224
2,224
Effect of foreign exchange rate changes

(4)
20
18
Net cash and cash equivalents carried forward
 
5,404
3,205
5,914


















CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half year to 31 December 2015
Share
Share
Capital reserve -
Hedging
Foreign
currency
Profit
and loss account
capital
premium
own shares
reserve
reserve
reserve
Total
'000
'000
'000
'000
'000
'000
'000
At 1 July 2015
4,517
445
(618)
(198)
49
11,734
15,929
Profit for the period
-
-
-
-
-
2,711
2,711
Exchange differences on retranslation of foreign operations
-
-
-
-
(4)
-
(4)
Net gain on cash flow hedges
-
-
-
170
-
-
170
Tax on derivative financial liability
-
-
-
(35)
-
-
(35)
Actuarial gain on defined benefit pension schemes, net of tax
-
-
-
-
-
25
25
Dividends
-
-
-
-
-
(1,248)
(1,248)
Share based payments
-
-
-
-
-
123
123
Acquisition of own shares
-
-
(350)
-
-
-
(350)
Exercise of share based incentives
-
-
-
-
-
(38)
(38)
At 31 December 2015
4,517
445
(968)
(63)
45
13,307
17,283






Share
Share
Capital reserve -
Hedging
Foreign
currency
Profit
and loss account

capital
premium
own shares
reserve
reserve
reserve
Total
'000
'000
'000
'000
'000
'000
'000
At 1 July 2014
4,517
445
(618)
(62)
32
12,728
17,042
Profit for the period
-
-
-
-
-
2,367
2,367
Exchange differences on retranslation of foreign operations
-
-
-
-
20
-
20
Net gain on cash flow hedges
-
-
-
34
-
-
34
Tax on derivative financial liability
-
-
-
(5)
-
-
(5)
Actuarial loss on defined benefit pension schemes, net of tax
-
-
-
-
-
(3,519)
(3,519)
Dividends
-
-
-
-
-
(998)
(998)
Share based payments
-
-
-
-
-
27
27
At 31 December 2014
4,517
445
(618)
(33)
52
10,605
14,968

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year to 31 December 2015
1. Basis of preparation
The condensed consolidated interim financial statements of The Alumasc Group plc and its subsidiaries have been prepared on the basis of International Financial Reporting Standards (IFRS), as adopted by the European Union, that are effective at 31 December 2015. 
The condensed consolidated interim financial statements have been prepared using the accounting policies set out in the statutory accounts for the financial year to 30 June 2015 and in accordance with IAS34 "Interim Financial Reporting".
The consolidated financial statements of the group as at and for the year ended 30 June 2015 are available on request from the company's registered office at Burton Latimer, Kettering, Northants, NN15 5JP or at the website www.alumasc.co.uk.
The comparative figures for the financial year ended 30 June 2015 are not the company's statutory accounts for that financial year but have been extracted from those accounts. Those accounts have been reported on by the company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The comparative figures for the financial year ended 30 June 2015 and the six month period ended 31 December 2014 have been re-classified to show Dyson Diecastings as a discontinued operation.
The condensed consolidated interim financial statements for the half year ended 31 December 2015 are not statutory accounts and have been neither audited nor reviewed by the group's auditors. They do not contain all of the information required for full financial statements, and should be read in conjunction with the consolidated financial statements of the group as at and for the year ended 30 June 2015. 
These condensed consolidated interim financial statements were approved by the Board of Directors on 
2 February 2016.
On the basis of the group's financing facilities and current financial plans and sensitivity analyses, the Board is satisfied that the group has adequate resources to continue in operational existence for twelve months from the date of signing this report and accordingly continues to adopt the going concern basis in preparing these condensed consolidated interim financial statements.
2. Estimates
The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, income and expense. Actual results may differ from these estimates.
Except as described below, in preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 June 2015.
During the six months ended 31 December 2015, management reassessed and updated its estimates in respect of retirement benefit obligations based on market data available at 31 December 2015. The resulting impact was a 0.5 million pre-tax actuarial gain, calculated using IAS19 conventions, recognised in the six month period to 31 December 2015. 
3. Risks and Uncertainties
A summary of the group's principal risks and uncertainties was provided on pages 16 and 17 of Alumasc's Report and Accounts 2015. The Board considers these risks and uncertainties remain relevant to the current financial year.
Alumasc can experience changes to the timing of construction projects, including those installed by third parties, that are beyond the group's control. Such changes could impact the timing of revenue and profit recognition in the second half year.
Alumasc is in discussions with a number of parties to sell the Dyson Diecastings business. Current expectations are that the carrying value of the business of 3.0 million will be recovered on sale. However, depending on the final outcome agreed, sales proceeds could differ from the book value at 31 December 2015.
4. Segmental analysis - continuing operations
Since Alumasc's Report and Accounts 2015, the operating segments of The Alumasc Group have been re-aligned to reflect changes to internal management responsibilities. Dyson Diecastings, as a discontinued operation, has also now been excluded from this disclosure. The segmental analysis of comparative data for the periods ending 31 December 2014 and 30 June 2015 have therefore been re-presented.
External
Inter-segment
Revenue
Total
Segmental Operating
Result
'000
'000
'000
'000
Half Year to 31 December 2015
Solar Shading & Screening
7,620
-
7,620
462
Roofing & Walling
18,409
2
18,411
1,755
Water Management
13,342
688
14,030
1,907
Housebuilding & Ancillary Products
4,097
-
4,097
573
Sub-total
43,468
690
44,158
4,697
Elimination/Unallocated costs
-
(690)
(690)
(570)
Total
43,468
-
43,468
4,127
'000





Segmental operating result
4,127
Brand amortisation
(134)
IAS 19 pension scheme administration costs
(278)





Total operating profit from continuing operations
3,715
External
Inter-segment
Revenue
Total
Segmental Operating
Result
'000
'000
'000
'000
Half Year to 31 December 2014 (re-stated)
Solar Shading & Screening
8,159
-
8,159
386
Roofing & Walling
20,870
5
20,875
2,589
Water Management
12,383
584
12,967
1,161
Housebuilding & Ancillary Products
3,767
-
3,767
432
Sub-total
45,179
589
45,768
4,568
Elimination/Unallocated costs
-
(589)
(589)
(597)
Total
45,179
-
45,179
3,971
'000





Segmental operating result
3,971
Brand amortisation
(134)
IAS 19 pension scheme administration costs
(270)





Total operating profit from continuing operations
3,567
External
Inter-segment
Revenue
Total
Segmental Operating
Result
Full Year to 30 June 2015 (re-stated)
Solar Shading & Screening
16,007
-
16,007
929
Roofing & Walling
40,577
8
40,585
4,461
Water Management
25,935
1,109
27,044
3,272
Housebuilding & Ancillary Products
7,776
-
7,776
1,137
Sub-total
90,295
1,117
91,412
9,799
Elimination/Unallocated costs
-
(1,117)
(1,117)
(1,485)
Total
90,295
-
90,295
8,314
'000
Segmental operating result
8,314
Brand amortisation
(268)
IAS 19 pension scheme administration costs
(455)
Total operating profit from continuing operations
7,591
5. Discontinued operations
Alumasc Precision
Components
Pendock
Profiles
Dyson Diecastings
Total
'000
'000
'000
'000
Half Year to 31 December 2015
Revenue
-
-
3,465
3,465
Operating profit
-
-
167
167
Tax charge
-
-
(35)
(35)
Profit after taxation
-
-
132
132
Alumasc Precision
Components
Pendock
Profiles
Dyson Diecastings
Total
'000
'000
'000
'000
Half Year to 31 December 2014 (re-stated)
Revenue
10,269
785
3,816
14,870
Operating (loss)/profit
(1,117)
55
338
(724)
Gain on disposal of discontinued operation
-
770
-
770
Tax credit/(charge)
246
(12)
(74)
160
(Loss)/profit after taxation
(871)
813
264
206
Alumasc Precision
Components
Pendock
Profiles
Dyson Diecastings
Total
'000
'000
'000
'000
Full Year to 30 June 2015 (re-stated)
Revenue
16,672
785
7,787
25,244
Operating (loss)/profit
(1,659)
55
708
(896)
(Loss)/gain on disposal of discontinued operations
(1,340)
770
-
(570)
Tax credit/(charge)
1,205
(12)
(156)
1,037
(Loss)/profit after taxation
(1,794)
813
552
(429)
6. Net finance costs

Half year to
Half year to
Year to 



31 December
31 December
30 June



2015
2014 
2015



'000
'000
'000






Finance income - Bank interest
-
(2)
(5)
Finance costs - Bank loans and overdrafts
14
24
85
 - Revolving credit facility
110
240
512

124
264
597
 
- IAS19 net pension scheme finance costs
349
400
711

473
664
1,308
7. Reported to underlying profit reconciliation
Half year to 31 December 2015
Half year to 31 December 2014
(re-stated)
Year to 30 June 2015
(re-stated)
'000
'000
'000
Reported profit before tax
3,242
2,905
6,288
Add: Brand amortisation
134
134
268
Add: IAS19 pension scheme administration costs
278
270
455
Add: IAS19 net pension scheme finance costs
349
400
711
Underlying profit before tax
4,003
3,709
7,722
8. Tax expense
















Half year to 31 December 2015
Half year to 31 December 2014
Year to 30 June 2015





(re-stated)
(re-stated)




'000
'000
'000







Current tax: 




UK corporation tax - continuing operations

545
553
922
- discontinued operations

(4)
(104)
(81)
Overseas tax
4
2
11
Amounts under provided in previous years
-
-
39
Total current tax

545
451
891







Deferred tax:





Origination and reversal of temporary differences:



- continuing operations
150
189
543
- discontinued operations
39
(56)
(956)
Amounts over provided in previous years
-
-
(56)
Rate change adjustment
(36)
-
24
Total deferred tax
153
133
(445)














Total tax expense
698
584
446




Tax charge on continuing operations
663
744
1,483
Tax charge/(credit) on discontinued operations
35
(160)
(1,037)
Total tax expense
698
584
446







Tax recognised in other comprehensive income:



Deferred tax:



Actuarial gains/(losses) on pension schemes
517
(815)
(945)
Cash flow hedges
35
5
(43)
Tax charged/(credited) to other comprehensive income
552
(810)
(988)







Total tax charge/(credit) in the statement of comprehensive income
1,250
(226)
(542)
9. Dividends
The directors have approved an interim dividend per share of 2.7p (2014: 2.5p) which will be paid on 7 April 2016 to shareholders on the register at the close of business on 4 March 2016. The cash cost of the dividend is expected to be 1.0 million. In accordance with IFRS accounting requirements, as the dividend was approved after the balance sheet date, it has not been accrued in the interim consolidated financial statements. A final dividend per share of 3.5p in respect of the 2014/15 financial year was paid at a cash cost of 1.2 million during the six months to 31 December 2015.
10. Share Based Payments
During the period, the group awarded 180,000 options (2014: none) under the Executive Share Option Scheme ("ESOS"). These options have an exercise price of 188p and require certain criteria to be fulfilled before vesting. 80,000 existing options (2014: none) were exercised during the period and no ESOS options (2014: 164,000) lapsed during the period. 
Total awards granted under the group's Long Term Incentive Plans ("LTIP") amounted to 194,413 (2014: nil). LTIP awards have no exercise price but are dependent on certain vesting criteria being met. During the period no existing LTIP awards lapsed (2014: 259,328).
11. Earnings per share
Basic earnings per share is calculated by dividing the net profit for the period attributable to ordinary equity shareholders of the parent by the weighted average number of ordinary shares in issue during the period.
Diluted earnings per share is calculated by dividing the net profit attributable to ordinary equity shareholders of the parent by the weighted average number of ordinary shares in issue during the period, after allowing for the exercise of outstanding share options. The following sets out the income and share data used in the basic and diluted earnings per share calculations:

Half year to 31 December 2015
Half year to 31 December 2014
(re-stated)
Year to
30 June 
2015
(re-stated)

'000
'000
 '000




Profit attributable to equity holders of the parent - continuing
2,579
2,161
4,805
Profit/(loss) attributable to equity holders of the parent - discontinued
132
206
(429)
Net profit attributable to equity holders of the parent
2,711
2,367
4,376

Half year to 31 December 2015
Half year to 31 December 2014
Year to
30 June 
2015

 000s
 000s
000s




Basic weighted average number of shares
35,646
35,648
35,648
Dilutive potential ordinary shares - employee share options
903
546
567
Diluted weighted average number of shares
36,549
36,194
36,215




Calculation of underlying earnings per share:


Half year to 31 December 2015
Half year to 31 December 2014
(re-stated)
Year to
30 June 
2015
(re-stated)

'000
'000
 '000




Reported profit before taxation from continuing operations
3,242
2,905
6,288
Add: brand amortisation
134
134
268
Add: IAS19 pension scheme administration costs
278
270
455
Add: IAS19 net pension scheme finance costs
349
400
711




Underlying profit before taxation
4,003
3,709
7,722
Tax at underlying group rate of 21.0% 
(2014: 22%; 2014/15: 22%)
(841)
(816)
(1,699)
Underlying earnings 
3,162
2,893
6,023




Underlying earnings per share
8.9p
8.1p
16.9p
12. Related party disclosure
The group has a related party relationship with its directors and with its UK pension schemes. There has been no material change in the nature of the related party transactions described in the Report and Accounts 2015. Related party information is disclosed in note 31 of that document. 
Responsibility Statement
The Directors confirm that, to the best of their knowledge:
a) the condensed consolidated interim financial statements have been prepared in accordance with IAS34 "Interim Financial Reporting" as adopted by the EU; and
b) the interim management report includes a fair review of the information required by:
 DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and 
 DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the group during that period; and any changes in the related party transactions described in the last annual report that could do so.
On behalf of the Board
G P Hooper  A Magson 
Chief Executive  Group Finance Director 

This information is provided by RNS
The company news service from the London Stock Exchange
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