REG - Alumasc Group Plc - Interim Results
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RNS Number : 4055R Alumasc Group PLC (The) 03 February 2026
Tuesday 3 February 2026
The Alumasc Group plc
Interim results
Resilient performance, on track for delivering on FY expectations
Alumasc (ALU.L) (the 'Company' or the 'Group'), the sustainable building
products, systems and solutions Group today announces its results for the six
months ended 31 December 2025 ('H1 FY26').
· Resilient performance against a strong prior year comparator;
market share gains together with a healthy and growing order book and robust
pipeline underpins continued anticipation of a materially stronger H2, in line
with management's expectations
· Group revenue £50.4m (H1 FY25: £57.4m):
o Continued demand headwinds from Building Safety Act-related project delays
and affordability issues, with Q2 further impacted by uncertainty caused by
the Autumn budget
o H1 FY25 comparator includes £5.5m revenue from substantial Chek Lap Kok
(CLK) airport project in Hong Kong (H1 FY26: £0.1m), further revenues from
CLK expected in H2 FY26
· Group underlying* operating margin reflects lower H1 FY26 revenues
at 8.9% (H1 FY25: 14.1%):
o Further action taken to drive efficiency and margins; £1.1m of annualised
cost savings achieved
o Medium term target remains 15-20%
· Underlying* profit £4.0m (H1 FY25: £7.5m) reflects expected
weighting to H2 FY26
· Statutory profit before tax of £4.0m (H1 FY25: £6.5m)
· Interim dividend per share of 3.5p (H1 FY25: 3.5p) maintained,
reflecting strong financial position and continued confidence in prospects
· Strong balance sheet, with net debt of £7.7m (H1 FY25: £4.6m),
representing a conservative leverage ratio of 0.5x (H1 FY25: 0.3x):
o Temporary working capital build towards end of Q2 FY26, in order to meet
growing order intake for H2 FY26
o £0.5m non-underlying cash receipt from sale of Dover property in period
· Improved defined benefit pension scheme position: IAS19 surplus of
£7.1m (Dec 24: £3.5m; June 2025: £4.8m):
o Annual contributions reduced from £1.2m to £0.7m from September 2025
o Scheme substantially de-risked; low dependency target expected to be
reached by 2030
· Water Management team strengthened with two Managing Director
appointments, encouraging progress being made
· Pamela Bingham joining as CEO Designate on 2 March 2026, Paul
Hooper retiring as Chief Executive on 31 March 2026 to allow for an orderly
handover
Outlook
· Strong order book, with growing momentum:
o Excluding CLK project, Group order book 27% higher than December 2024, and
50% higher than December 2023
o Includes £2m order for first phase of project at Changi Airport in
Singapore, substantial potential for further work
· Robust pipeline of future near- and medium-term UK and overseas
opportunities
o Infrastructure pipeline includes defence expenditure, schools rebuilding
programme, new hospitals programme, expansion of prison estate, and upgrades
to the transport and energy networks
o Growing pipeline of overseas specifications outside of traditionally
strong Asia and Middle East territories
· Some early signs of improving business and consumer confidence
· Interest rate reductions and Government reforms to Building Safety
Regulator and National Planning Policy Framework ('NPPF') should help unlock
latent demand over 2026
· Alumasc remains strategically positioned to capitalise on the shift
toward sustainable construction and green buildings
As a result, the Board remains confident in the Group achieving its
expectations for the year to June 2026, and in the significant opportunities
available over the medium and longer term.
Commenting on the interim results, Paul Hooper, Chief Executive of Alumasc
said:
"As set out in October's trading update, we have had to manage a more
challenging backdrop in the first half, with underlying headwinds compounded
by uncertainty ahead of the delayed 2025 Autumn Budget. Despite this, the
Group has again shown its resilience and agility, enabling it to maintain its
strategic progress. We have been successful in identifying opportunities to
outperform in our target markets, and the management team has taken further
action to deliver substantial cost savings, while continuing to invest in
innovation and overseas growth.
It has been pleasing to see strong momentum developing in our order intake in
the latter part of Q2. At December 2025 our order book - excluding the CLK
airport project - stood 27% higher than a year ago, and 50% higher than
December 2023. This encouraging position at December 2025, together with a
robust pipeline of future opportunities, gives us confidence in our ability to
deliver a full year result in line with our expectations.
With our strong portfolio of sustainability-linked products and the
medium-term prospect of market recovery, we remain well positioned to deliver
substantial shareholder value."
* a reconciliation of underlying to statutory profit is provided in note 4
Enquiries:
The Alumasc Group plc +44 (0) 1536 383844
Paul Hooper, Chief Executive
Simon Dray, Group Finance Director
Cavendish Capital Markets Ltd (Nominated Adviser & Joint Broker)
Julian Blunt, Edward Whiley (Corporate Finance) + 44 (0) 207 220 0500
Tim Redfern (ECM)
Peel Hunt (Joint Broker)
Mike Bell +44 (0) 20 7418 8831
Ed Allsop
Camarco (Financial PR) alumasc@camarco.co.uk (mailto:alumasc@camarco.co.uk)
Ginny Pulbrook + 44 (0) 203 757 4992
Tilly Butcher
REVIEW OF INTERIM RESULTS
Group Performance Summary
H1 FY26 H1 FY25
Revenue £50.4m £57.4m
Underlying* operating profit £4.5m £8.1m
Underlying* operating margin 8.9% 14.1%
Underlying PBT* £4.0m £7.5m
Statutory PBT £4.0m £6.5m
* a reconciliation of underlying to statutory profit is provided in note 4
H1 FY26 represented a resilient performance, against a more challenging
backdrop. Our UK construction markets were appreciably softer on a
year-on-year basis, against a tougher comparative as H1 FY25 had yet to be
significantly affected by the industry-wide planning delays and affordability
constraints seen in the second half of FY25. These issues were further
compounded in Q2 FY26 by the uncertainty caused by the delayed Autumn 2025
Budget, and a temporary pause in shipments to the large CLK airport project in
H1 FY26, which contributed £5.5m of revenue to the prior half year.
As expected, Group revenue declined by 12% to £50.4m (H1 FY25: £57.4m). UK
revenue declined by 5% to £46.9m (H1 FY25: £49.3m), amidst the steepest
downturn in UK construction output since COVID. Overseas revenue was 56% lower
at £3.5m (H1 FY25: £8.1m). The prior period included £5.5m of revenue from
the CLK project, with only a very modest contribution in H1 FY26.
Encouragingly, CLK work is now resuming and the remaining c.£2m of orders are
expected to be shipped in H2 FY26 and, more broadly, good progress has been
made in developing export opportunities more generally.
We undertook decisive action to reset costs and capacity to reflect the
near-term outlook in the UK, and through operational efficiencies delivered
£1.1m of annualised savings, with a half year benefit immediately available
in H2 FY26.
Our focus continues to be on our strategic growth initiatives: continuing to
build our position as market leader in sustainable building materials,
accelerating organic growth and driving margin improvement, and continuing to
invest in our future growth.
It was therefore pleasing to see strong momentum developing in both our UK and
overseas order intake in Q2. At December 2025 our order book - excluding the
CLK airport project - stood 27% higher than a year ago, and 50% higher than
December 2023, and our pipeline of future sales opportunities is robust and
growing.
We have been successful in winning a number of overseas projects in the
period, most notably in December 2025 with a £2m initial order for a project
at Changi Airport in Singapore. Our investment in overseas technical sales
resource is increasing both the reach of our product specifications and our
ability to generate revenue from them, and our order book and pipeline include
a growing contribution from territories outside of our traditional areas of
strength in Asia and the Middle East.
Operational Review
Water Management
H1 FY26 H1 FY25
Revenue £22.7m £29.6m
Underlying* operating profit £1.5m £4.7m
Underlying* operating margin 6.4% 15.8%
Operating profit £1.0m £3.8m
* prior to restructuring costs of £236k (H1 FY25: £690k) and amortisation of
acquired intangible assets of £212k (H1 FY25: £212k)
Water Management revenue declined by £6.9m (23%), of which the CLK project
accounted for £5.5m. There was however some encouragement with continued
export opportunities and pipeline build-up in our target geographical areas.
Work at CLK airport has also resumed and we expect to ship the remaining
c.£2m of orders in H2 FY26.
Excluding the CLK project, divisional revenues declined by 6%, with some of
our key UK markets subdued. On mid-high rise construction, we have seen
continued project delays from the implementation of the Building Safety Act.
Alongside this, the continued low level of UK housing volumes also constrained
activity, given the division's exposure to housebuilding. These were further
exacerbated by uncertainty ahead of the delayed 2025 Autumn Budget, which
impacted confidence in an already fragile market.
Our December result was encouraging, indicating some level of confidence
returning. This was supported by the Royal Institute of Chartered Surveyors'
December 2025 Residential Market Survey, which reported improving near- and
twelve-month activity indicators, assisted by the recent fall in interest
rates.
Due to operational gearing, our operating margin was affected by the lower
volumes, declining to 6.4% (H1 FY25: 15.8%). In response to this, we undertook
a restructuring of our Burton Latimer (rainwater goods) and Halstead (covers
and drainage) sites, removing an annualised £1.1m of overhead, with the
associated £0.2m cost presented as a non-underlying item. These efficiencies,
together with volume growth and operational gearing, will improve margins in
the second half of the financial year.
A significant uplift in activity in both the UK and overseas is expected in
H2.
As well as seeing the resumption of sales to the CLK project in H2, we were
very pleased to win the first phase of work at a project at Changi Airport in
Singapore. This order is worth an initial c.£2m, with subsequent phases - not
yet tendered - potentially worth a further £10m-£15m. Other good sized
orders where we have a high expectation of success are being negotiated in
South America, Africa and South Asia.
UK demand is expected to be supported by the recent reductions in interest
rates, and planned Government investments on defence and the prison estate
capacity. Recent Government actions on Building Safety Act approvals and NPPF
reforms should, in time, help release pent-up demand. The division also
entered H2 FY26 with an order book of £7.6m, 3% higher than December 2024;
excluding the CLK project, the order book growth was 53% compared to December
2024, and 66% compared to December 2023.
Building Envelope
H1 FY26 H1 FY25
Revenue £19.0m £20.2m
Underlying* operating profit £1.9m £2.5m
Underlying* operating margin 10.0% 12.5%
Operating profit £1.9m £2.5m
* no adjustments in H1 FY26 or H1 FY25
Building Envelope division had a high level of activity in H1, which was not
fully reflected in its sales performance due to project delays caused by the
implementation of the Building Safety Act, as well as the uncertainty arising
from the Autumn Budget. Revenue for the half year was 6% lower than H1 FY25,
with the underlying operating margin lower at 10.0% (H1 FY25: 12.5%). In line
with the other two divisions however, Building Envelope had an encouraging
performance in December (post Budget), with much-improved order intake
momentum.
The division's focus on outstanding technical support is continuing to grow
its share in an increasingly regulated and sustainability-driven market. The
sales opportunity pipeline from blue chip private landlords and public sector
work is at a record level, supported by strong specifications, improving the
visibility of future work. A new single ply offering, Aluply, was launched in
November 2025, bringing cost advantages and resulting in increased enquiries
from both the newbuild and refurbishment sectors.
The division's order book at half year end was £6.9m, 11% higher than
December 2024 and 38% higher than December 2023, with a robust pipeline of
future opportunities that gives us confidence for an improved second half.
Housebuilding Products
H1 FY26 H1 FY25
Revenue £8.7m £7.5m
Underlying* operating profit £2.2m £1.9m
Underlying* operating margin 25.4% 25.0%
Operating profit £2.2m £1.9m
* no adjustments in H1 FY26 or H1 FY25
With housebuilding volumes in late 2025 falling to their lowest level since
Covid, the Housebuilding Products division ('Timloc') performed
extraordinarily well, growing its revenue by 15%, and its operating profit by
17% to £2.2m.
As a number of competitors suffered supply issues, many customers relied on
Timloc's industry-leading next-day delivery service and low carriage-paid
order values. This included securing new trading agreements with a major
national merchant and a specialist building plastics provider.
Timloc continued to gain market share, particularly in roofing ventilation and
roof tile vents, where Timloc have now established themselves in this adjacent
channel, with roofing merchants valuing the extensive product range and
next-day service. Timloc have invested in a new 1000 tonne injection moulding
machine, which was commissioned in January 2026 to support additional growth
in this product category.
Towards the end of 2025, Timloc launched their Loftite loft door, a new design
which has created much interest. It exceeds the airtightness requirements of
the Building Regulations part L1 and L2, and can help buildings achieve the
higher performance levels required by both the Code for Sustainable Homes and
the Future Homes Standard. To maximise performance, the frame incorporates two
separate air seals, ensuring excellent airtightness at both the door to frame
and frame to ceiling interfaces. Loftite's patent-pending fitting slots are
designed for rapid and straightforward single person installation. Going
forward, Timloc will focus on securing specifications for this product with
housebuilders. Further new products are also planned to be launched in 2026 to
expand Timloc's basket of products and secure more market share.
This very well managed division goes from strength to strength and is well
placed to benefit further from the eventual recovery in housebuilding demand.
Strategic Overview
Our strategic focus remains on our priorities to deliver long term value
creation:
- Championing sustainable building products
- Accelerating sales growth
- Driving margin improvement
- Value-enhancing investment in people, plant and M&A
Alumasc champions the use of recycled materials to make high quality, durable
and low maintenance products that are themselves recyclable at the end of
their life. Over 80% of our products address environmental challenges facing
the built environment: building decarbonisation and energy efficiency; climate
resilience; and providing green spaces in an urban environment.
Despite the recent challenging market conditions, we believe these long-term
growth drivers are stronger than ever, supported by an unwavering customer
focus and excellent technical support. The Group has continued to gain share
in its key UK markets, against a challenging backdrop, and is very well
positioned to benefit when volumes recover. Overseas opportunities continue to
grow, supported by the recent investments in technical sales resource in key
territories.
Despite the decline in operating margin in the period, the Group's operational
gearing means this will recover as volumes improve in H2 FY26. Targeted
actions were taken to right-size headcount during the period, with £1.1m of
annualised cost reductions in the Water Management division. We were also
encouraged by the performance of the Housebuilding Products division in the
period.
We have continued to invest selectively to support long-term growth, with
capital spend focussed on capability/capacity extensions, new product
development and efficiency improvements. Our Water Management team was
strengthened in the period with two senior appointments. Steve Dann was
promoted from ARP Managing Director to Managing Director of Rainwater
Products, incorporating ARP and AWMS. Peter Blanchard also joined the Division
as Managing Director of our Covers and Drainage business (Gatic/Wade), based
in Halstead, Essex. Peter has a successful track record and significant
experience of specialist access covers and other high end specified airport
products.
Cash Flow and Net Debt
£m H1 FY26 H1 FY25
Underlying operating profit 4.5 8.1
Depreciation and underlying amortisation 2.0 1.5
Share-based payments 0.2 0.2
Working capital movements (2.1) 1.1
Underlying operating cash flow 4.6 10.9
Pension scheme funding (0.5) (0.6)
Cash generated by underlying operating activities 4.1 10.3
Operating cash conversion 91% 127%
Non-underlying cash flows 0.2 (0.5)
Cash generated by operating activities 4.3 9.8
Capital expenditure (1.2) (2.0)
Interest (0.5) (0.6)
Tax (0.5) (1.2)
Lease principal repaid (0.8) (0.4)
Other cash flows (0.1) (0.2)
Free cash flow 1.2 5.4
Purchase of own shares (0.4) (0.1)
Dividend payments (2.7) (2.6)
(Increase)/decrease in net bank debt (1.9) 2.7
December 2025 December 2024*
£m
Net bank debt 7.7 4.6
Lease liabilities 7.7 6.3
Total (IFRS 16) net debt 15.4 10.9
* December 2024 restated to present vehicle leases as lease liabilities in
accordance with IFRS16.
The Group's underlying operating cash flow was £4.6m, £6.3m lower than H1
FY25 (£10.9m), due to the lower underlying operating profit and a £2.1m cash
outflow into working capital (H1 FY25: £1.1m inflow), which was due to a
temporary increase in inventories, in order to meet the growing order intake
for H2 FY26. This is expected to unwind as the second half progresses.
Pension scheme funding of £0.5m (H1 FY25: £0.6m) reflects the reduction in
annual contributions from September 2025 - from £1.2m to £0.7m - agreed with
the trustees at the 2025 triennial funding review.
Cash generated by underlying operating activities represented 91% (H1 FY25:
127%) of underlying operating profit.
Non-underlying cash receipts of £0.2m include £0.5m from the sale of a
property in Dover, vacated by the relocation of the access covers
manufacturing operations to Halstead, net of £0.3m of non-underlying costs
incurred in the reorganisation of the Water Management division.
Capital expenditure was £1.2m (H1 FY25: £2.0m), 60% (H1 FY25: 133%) of
depreciation. Interest payments were £0.5m (H1 FY25: £0.6m), and tax paid
was £0.5m (H1 FY25: £1.2m), lower than the prior period due to the timing of
payments and refunds - full year payments are expected to be more closely
aligned with the tax charge.
After repayments of lease principal and other cash flows totalling £0.9m (H1
FY25: £0.6m), free cash flow was £1.2m (H1 FY25: £5.4m).
Own share purchases, to satisfy employee share awards, totalled £0.4m (H1
FY25: £0.1m), and after dividend payments of £2.7m (H1 FY25: £2.6m), net
bank debt increased by £1.9m (H1 FY25: £2.7m decrease).
Net bank debt (before IFRS16 lease liabilities) at H1 FY26 was £7.7m (H1
FY25: £4.6m), representing a conservative leverage ratio of 0.5x (H1 FY25:
0.3x), comfortably within our bank covenant of less than 2.5x.
Pension surplus and Net Assets
The Group's IAS 19 defined benefit pension surplus at December 2025 was £7.1m
(December 2024: £3.3m; June 2025: £4.8m); the improvement a primarily a
result of improved asset returns. Reduced annual contributions of £0.7m (down
from £1.2m) from September 2025 were agreed with the trustees at the 2025
triennial review; and we expect the scheme to reach a self-sufficient
position, substantially de-risked and requiring no further company
contributions, by 2030.
Group net assets increased to £42.4m (H1 FY25: £41.0m), as a result of the
retained profit after dividend distributions and the increased pension
surplus.
Interim Dividend
Reflecting its confidence in the Group's outlook, the Board has declared an
unchanged interim dividend of 3.5p per ordinary share (H1 FY25: 3.5p), payable
on 8 April 2026 to shareholders on the register on 20 February 2026. The
closing date for dividend reinvestment plan (DRIP) elections is 16 March 2026.
CEO Succession
As announced on 15 January, Pamela Bingham will join the Board on 2 March 2026
as CEO Designate, and will take over as CEO on the retirement of the current
Chief Executive, Paul Hooper, on 31 March 2026. Pamela has extensive
commercial experience, with a strong record of value creation through organic
and inorganic growth, and of running successful employee engagement, digital
transformation and customer loyalty programmes, all of which will be helpful
as she leads Alumasc through its next stage of growth.
Outlook
We continue to expect some market recovery later in 2026, with reducing
interest rates and some easing of the Building Safety Act delays, although the
timing of this is uncertain. In any event, we remain confident in our ability
to outperform our markets, and have been encouraged by the improved order
intake exiting Q2. With a strong order book at December 2025, together with a
robust pipeline of future opportunities, we are confident in our ability to
deliver a full year in line with the Board's expectations.
With our strong portfolio of sustainability-linked products, we remain well
positioned to deliver substantial shareholder value as markets recover over
the medium term.
Paul Hooper, Chief
Executive
Simon Dray, Group Finance Director
3 February 2026
CEO Succession - a personal message from Paul Hooper, Chief Executive
I have spent 25 years at Alumasc, two as Group MD and 23 as Chief Executive. I
will retire at the end of March 2026 and I would like to take this opportunity
to thank all of my colleagues, our customers and suppliers, our shareholders,
our brokers and other advisers, and those I have bought companies from and
sold to, for their fantastic support. There has never been a boring moment and
after a fascinating ride I would like to hope that that our Group, now
focussed on sustainable building products, is in a stronger place. I wish
every future success to the Group (under the new leadership of Pamela
Bingham).
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
for the half year to 31 December 2025
Half year to 31 December 2025 Half year to 31 December 2024 Year to
30 June 2025
Underlying Non-underlying Underlying Non-underlying
Total Total Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue 5 50,384 - 50,384 57,356 - 57,356 113,414
Cost of sales (32,163) - (32,163) (35,777) - (35,777) (70,374)
Gross profit 18,221 - 18,221 21,579 - 21,579 43,040
Net operating expenses
Net operating expenses before non-underlying items
(13,719) - (13,719) (13,471) - (13,471) (27,456)
Non-underlying items 4 - (94) (94) - (902) (902) (1,979)
Net operating expenses (13,719) (94) (13,813) (13,471) (902) (14,373) (29,435)
Operating profit 4, 5 4,502 (94) 4,408 8,108 (902) 7,206 13,605
Net finance (costs)/income 6 (540) 114 (426) (629) (50) (679) (1,331)
Profit before taxation 4 3,962 20 3,982 7,479 (952) 6,527 12,274
Tax expense 7 (987) 86 (901) (1,787) 156 (1,631) (2,935)
Profit/(loss) for the period 2,975 106 3,081 5,692 (796) 4,896 9,339
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Actuarial gain on defined benefit pensions, net of tax 2,077
1,300 1,472
Items that are or may be reclassified subsequently to profit or loss:
Effective portion of changes in fair value of cash flow hedges, net of tax 25
4 44
Exchange differences on retranslation of foreign operations
26 21 (181)
30 65 (156)
Other comprehensive gain for the period, net of tax 1,330 1,537 1,921
Total comprehensive profit for the period, net of tax 4,411 6,433 11,260
Earnings per share: Pence Pence Pence
Basic earnings per share 10 8.6 13.6 25.9
Diluted earnings per share 10 8.4 13.3 25.3
Reconciliations of underlying to statutory profit and earnings per share are
provided in notes 4 and 10 respectively.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
at 31 December 2025
31 December 31 December 30 June
2025 2024 2025
(Unaudited) (Unaudited) (Audited)
(restated*)
Notes £'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment - owned assets 15,843 16,328 15,983
Property, plant and equipment - right of use assets 7,396 6,140 6,651
Goodwill 12,678 12,678 12,678
Other intangible assets 5,806 6,430 6,048
Employee benefit asset 7,145 3,308 4,823
48,868 44,884 46,183
Current assets
Inventories 14,689 12,950 13,159
Trade and other receivables 19,329 18,817 26,209
Cash at bank 11 5,042 6,581 6,406
39,060 38,348 45,774
Total assets 87,928 83,232 91,957
Liabilities
Non-current liabilities
Interest bearing loans and borrowings 11 (12,700) (11,157) (12,200)
Lease liability 11 (5,473) (4,995) (5,549)
Provisions (1,486) (1,946) (1,797)
Deferred tax liabilities (5,041) (4,709) (4,450)
(24,700) (22,807) (23,996)
Current liabilities
Trade and other payables (16,507) (19,025) (24,013)
Lease liability 11 (2,195) (1,316) (1,396)
Provisions (266) (318) (321)
Corporation tax payable (1,773) (1,593) (1,198)
Deferred consideration - (750) -
Derivative financial liabilities (43) (22) (47)
(20,784) (23,024) (26,975)
Total liabilities (45,484) (45,831) (50,971)
Net assets 42,444 37,401 40,986
Equity
Share capital 4,517 4,517 4,517
Share premium 445 445 445
Capital reserve - own shares (185) (183) (556)
Hedging reserve (31) (16) (35)
Foreign currency reserve 13 189 (13)
Profit and loss account reserve 37,685 32,449 36,628
Total equity 42,444 37,401 40,986
* December 2024 restated to present vehicle leases as lease liabilities in
accordance with IFRS16.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
for the half year to 31 December 2025
Half year to Half year to Year to
31 December 31 December 30 June
2025 2024 2025
(Unaudited) (Unaudited) (Audited)
Notes £'000 £'000 £'000
Operating activities
Operating profit 4,408 7,206 13,605
Adjustments for:
Depreciation 1,917 1,607 3,662
Amortisation 361 332 720
(Profit)/loss on disposal of property, plant and equipment (375) 2 (12)
Share based payments 200 150 161
(Increase)/decrease in inventories (1,530) 203 (6)
Decrease/(increase) in receivables 7,251 3,266 (4,497)
(Decrease)/increase in trade and other payables (7,520) (2,327) 2,625
Movement in provisions (366) 76 (69)
Cash contributions to retirement benefit schemes (475) (600) (1,200)
Cash generated by operating activities 3,871 9,915 14,989
Tax paid (540) (1,224) (2,596)
Net cash inflow from operating activities 3,331 8,691 12,393
Investing activities
Purchase of property, plant and equipment (1,105) (1,935) (2,484)
Payments to acquire intangible fixed assets (119) (141) (147)
Proceeds from sales of property, plant and equipment 524 4 32
Acquisition of subsidiary - (5) (755)
Net cash outflow from investing activities (700) (2,077) (3,354)
Financing activities
Bank interest paid (446) (492) (992)
Equity dividends paid (2,729) (2,625) (3,887)
Draw down/(repayment) of amounts borrowed 500 (2,500) (1,500)
Refinancing costs - (79) (79)
Principal paid on lease liabilities (832) (607) (1,611)
Interest paid on lease liabilities (90) (66) (297)
Purchase of own shares (655) (272) (741)
Exercise of share options 231 177 245
Net cash outflow from financing activities (4,021) (6,464) (8,862)
Net (decrease)/increase in cash at bank (1,390) 150 177
Net cash at bank brought forward 6,406 6,410 6,410
Net (decrease)/increase in cash at bank (1,390) 150 177
Effect of foreign exchange rate changes 26 21 (181)
Net cash at bank carried forward 11 5,042 6,581 6,406
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half year to 31 December 2025
Share Share Capital reserve - Profit
Foreign and loss account
Hedging currency
capital premium own shares reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 July 2025 4,517 445 (556) (35) (13) 36,628 40,986
Profit for the period - - - - - 3,081 3,081
Exchange differences on retranslation of foreign operations - - - - 26 - 26
Net gain on cash flow hedges - - - 5 - - 5
Tax on derivative financial liability - - - (1) - - (1)
Share based payments - - - - - 200 200
Actuarial gain on defined benefit pension schemes, net of tax - - - - - 1,300 1,300
Acquisition of own shares - - (655) - - - (655)
Own shares used to satisfy exercise of share awards - - 1,026 - - - 1,026
Exercise of share-based incentives - - - - - (795) (795)
Dividends - - - - - (2,729) (2,729)
At 31 December 2025 4,517 445 (185) (31) 13 37,685 42,444
Share Share Capital
reserve - Profit
Foreign and loss account
Hedging currency
capital premium own shares reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 July 2024 4,517 445 (321) (60) 168 28,789 33,538
Profit for the period - - - - - 4,896 4,896
Exchange differences on retranslation of foreign operations - - - - 21 - 21
Net gain on cash flow hedges - - - 59 - - 59
Tax on derivative financial liability - - - (15) - - (15)
Share based payments - - - - - 150 150
Actuarial gain on defined benefit pension schemes, net of tax - - - - - 1,472 1,472
Acquisition of own shares - - (273) - - - (273)
Own shares used to satisfy exercise of share awards - - 411 - - - 411
Exercise of share-based incentives - - - - - (233) (233)
Dividends - - - - - (2,625) (2,625)
At 31 December 2024 4,517 445 (183) (16) 189 32,449 37,401
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
for the half year to 31 December 2025
1. Basis of preparation
The condensed consolidated interim financial statements of The Alumasc Group
plc and its subsidiaries have been prepared in accordance with International
Financial Reporting Standards (IFRS) in conformity with the requirements of
the Companies Act 2006 that are effective at 31 December 2025.
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 2025 and in accordance with AIM Rule 18, and the
same accounting policies will be adopted in the 2026 annual financial
statements.
The consolidated financial statements of the Group as at and for the year
ended 30 June 2025 are available on request from the Company's registered
office at Burton Latimer, Kettering, Northants, NN15 5JP or on the website
www.alumasc.co.uk (http://www.alumasc.co.uk) .
The comparative figures for the financial year ended 30 June 2025 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
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(2) or (3) of the Companies Act 2006.
The condensed consolidated interim financial statements for the half year
ended 31 December 2025 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 2025.
These condensed consolidated interim financial statements were approved by the
Board of Directors on 3 February 2026.
The Group performed ahead of the Base Case trading scenario modelled as part
of the 30 June 2025 year end Going Concern review, and also ahead of the
stress testing performed. 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 2025, namely the valuation of
defined benefit pension obligations and the valuation of the Group's acquired
goodwill.
During the six months ended 31 December 2025, management reassessed and
updated its estimates in respect of retirement benefit obligations based on
market data available at 31 December 2025. The resulting impact was a £1.7
million pre-tax actuarial gain, calculated using IAS 19 conventions,
recognised in the six-month period to 31 December 2025.
3. Risks and uncertainties
A summary of the Group's principal risks and uncertainties was provided on
pages 53 to 56 of Alumasc's Report and Accounts for the year ended 30 June
2025. The Board considers these risks and uncertainties remain relevant to the
current financial year.
Specific risks and uncertainties relating to the Group's performance in the
second half year are:
- Inflation and interest rates, and their impact on the Group's
construction markets;
- Prolonged periods of bad weather which may impact the Group's
construction markets; and
- Potential impacts on customer demand or our supply chain from
the current global geopolitical environment.
4. Underlying to statutory profit reconciliation
Profit before tax Half year to 31 December 2025 Half year to 31 December 2024 Year to 30 June
2025
£'000 £'000 £'000
Underlying profit before tax 3,962 7,479 14,193
Acquired intangible asset amortisation (212) (212) (423)
IAS 19 net pension scheme finance income/(costs) 114 (50) 60
Profit on disposal of property 372 - -
Acquisition costs (18) - (21)
Restructuring & legal costs (236) (690) (1,535)
Reported profit before tax 3,982 6,527 12,274
Operating profit Half year to 31 December 2025 Half year to 31 December 2024 Year to 30 June
2025
£'000 £'000 £'000
Underlying operating profit 4,502 8,108 15,584
Acquired intangible asset amortisation (212) (212) (423)
Profit on disposal of property 372 - -
Acquisition costs (18) - (21)
Restructuring & legal costs (236) (690) (1,535)
Reported operating profit 4,408 7,206 13,605
The Group reports underlying profit and underlying earnings in addition to the
financial information presented under IFRS. The Board believes that underlying
profit and underlying earnings provide additional and consistent measures of
underlying performance by removing items that are not closely related to the
Group's day-to-day trading activities and which would typically be excluded in
assessing the value of the business.
Underlying profit and underlying earnings are used by the Board for internal
performance analysis, planning and employee compensation arrangements, and are
not defined terms under IFRS, and may therefore not be comparable with
similarly titled measures reported by other companies. They are therefore not
intended to be a substitute for, or superior to, IFRS measures of profit and
earnings.
In the presentation of underlying profits, management disclose the
amortisation of acquired intangible assets and IAS 19 pension income and costs
consistently as non-underlying items because they are material non-cash and
non-trading items that would typically be excluded in assessing the value of
the business.
In addition, management has presented the following specific items that arose
in H1 FY26 and H1 FY25 as non-underlying as they are non-recurring items that
are judged to be significant enough to affect the understanding of the
year-on-year evolution of the underlying trading performance of the business:
· One-off restructuring and legal costs representing the costs of a
restructuring of the Water Management division, including a restructuring of
the division's sales and commercial teams.
· Acquisition expenses relating to professional fees incurred in
the Group's acquisition activities.
· Profit on disposal of the Water Management division's site in
Dover, following the relocation of its activities to the division's site in
Halstead.
4. Underlying to statutory profit reconciliation (continued)
Impact on cashflow
Of the £20,000 credit (H1 FY25: £952,000 charge) non-underlying items
recognised, £118,000 credit (H1 FY25: £499,000 charge) was settled in cash.
No costs (H1 FY25: £191,000) are due to be paid in the second half of the
financial year, and £98,000 charge (H1 FY25: £262,000 charge) relates to
non-cash amortisation of acquired intangible assets and IAS 19 pension
income/costs.
5. Segmental analysis
In accordance with IFRS 8 Operating Segments, the segmental analysis below
follows the Group's internal management reporting structure.
Revenue Half year to 31 December 2025 Half year to 31 December 2024 Year to 30 June
2025
£'000 £'000 £'000
Water Management 22,656 29,583 55,523
Building Envelope 19,025 20,239 41,812
Housebuilding Products 8,703 7,534 16,079
Group revenue 50,384 57,356 113,414
Operating profit Half year to 31 December 2025 Half year to 31 December 2024 Year to 30 June
2025
£'000 £'000 £'000
Water Management 1,459 4,684 8,025
Building Envelope 1,897 2,530 5,300
Housebuilding Products 2,215 1,887 4,182
Unallocated central costs (1,069) (993) (1,923)
Underlying operating profit 4,502 8,108 15,584
Non-underlying items (94) (902) (1,979)
Operating profit 4,408 7,206 13,605
Sales to external customers by geographical segment
United North Middle Far Rest of
Kingdom Europe America East East World Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Half year to 31 December 2025 46,849 2,480 - 141 399 515 50,384
Half year to 31 December 2024 49,271 1,746 7 232 5,813 287 57,356
6. Net finance costs
Half year to Half year to Year to
31 December 31 December 30 June
2025 2024 2025
£'000 £'000 £'000
Bank overdrafts 10 5 14
Revolving credit facility 440 558 1,080
Interest on lease liabilities 90 66 297
540 629 1,391
IAS 19 net pension scheme finance (income)/costs (114) 50 (60)
426 679 1,331
7. Tax expense
Half year to 31 December 2025 Half year to 31 December Year to 30 June
2024 2025
£'000 £'000 £'000
Current tax:
UK corporation tax 731 1,048 2,239
Overseas tax 10 148 334
Amounts over-provided in previous years - - (26)
Total current tax 741 1,196 2,547
Deferred tax:
Origination and reversal of temporary differences 160 435 302
Amounts under-provided in previous years - - 86
Total deferred tax 160 435 388
Total tax expense 901 1,631 2,935
Deferred tax recognised in other comprehensive income:
Actuarial gains on pension schemes 433 491 692
Cash flow hedge 1 15 8
Tax charged to other comprehensive income 434 506 700
Total tax charge in the consolidated statement of comprehensive income
1,335 2,137 3,635
8. Dividends
The Directors have approved an interim dividend per share of 3.5 pence (FY25
interim dividend: 3.5 pence) which will be paid on 8 April 2026 to
shareholders on the register at the close of business on 20 February 2026. The
cash cost of the dividend is expected to be £1,257,000. As the dividend was
approved after the statement of financial position date, it has not been
accrued in the interim consolidated financial statements. A final dividend per
share of 7.6 pence in respect of the 2024/25 financial year was paid at a cash
cost of £2,729,000 during the six months to 31 December 2025.
9. Share Based Payments
During the period the Group awarded 240,000 options (H1 FY25: 195,000) under
the Executive Share Option Scheme ("ESOS"). These options have an exercise
price of 247.5 pence and require certain criteria to be fulfilled before
vesting. 154,170 existing options were exercised during the period (H1 FY25:
79,445) and 30,000 options lapsed (H1 FY25: 17,868).
Total awards granted under the Group's Long Term Incentive Plans ("LTIP")
amounted to 197,316 (H1 FY25: 189,006). LTIP awards have no exercise price but
are dependent on certain vesting criteria being met. 181,293 existing LTIP
awards were exercised during the period (H1 FY25: 118,119) and 125,973
existing LTIP awards lapsed (H1 FY25: 95,901).
10. 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 Half year to 31 December 2024 Year to
2025 30 June
2025
£'000 £'000 £'000
Net profit attributable to equity holders 3,081 4,896 9,339
000s 000s 000s
Basic weighted average number of shares 36,022 35,996 36,004
Dilutive potential ordinary shares - employee share options 677 725 844
Diluted weighted average number of shares 36,699 36,721 36,848
Half year to 31 December Half year to 31 December 2024 Year to
2025 30 June
2025
Pence Pence Pence
Basic earnings per share 8.6 13.6 25.9
Diluted earnings per share 8.4 13.3 25.3
Calculation of underlying earnings per share:
Half year to 31 December Half year to 31 December 2024 Year to
2025 30 June
2025
£'000 £'000 £'000
Reported profit before taxation 3,982 6,527 12,274
Acquired intangible asset amortisation 212 212 423
IAS 19 net pension scheme finance (income)/costs (114) 50 (60)
Profit on disposal of property (372) - -
Restructuring & legal costs 236 690 1,535
Acquisition costs 18 - 21
Underlying profit before taxation 3,962 7,479 14,193
Tax at underlying Group tax rate of 24.9% (987) (1,787) (3,435)
(2024/25 first half year: 23.9%; full year: 24.2%)
Underlying earnings 2,975 5,692 10,758
10. Earnings per share (continued)
Weighted average number of shares 36,022 35,996 36,004
8.3p 15.8p 29.9p
Basic underlying earnings per share
Diluted underlying earnings per share 8.1p 15.5p 29.2p
11. Movement in borrowings
Cash at
bank /bank overdrafts Bank loans Net bank cash/(debt) Lease liabilities Total borrowings
£'000 £'000 £'000 £'000 £'000
At 1 July 2025 6,406 (12,200) (5,794) (6,945) (12,739)
Cash flow movements (1,390) (500) (1,890) 832 (1,058)
Non-cash movements - - - (1,555) (1,555)
Effect of foreign exchange rates 26 - 26 - 26
At 31 December 2025 5,042 (12,700) (7,658) (7,668) (15,326)
Cash at
bank /bank overdrafts Bank Net bank cash/(debt) Lease liabilities Total borrowings
loans
£'000 £'000 £'000 £'000 £'000
At 1 July 2024 6,410 (13,662) (7,252) (7,033) (14,285)
Cash flow movements 150 2,579 2,729 607 3,336
Non-cash movements - (74) (74) 115 41
Effect of foreign exchange rates 21 - 21 - 21
At 31 December 2024 6,581 (11,157) (4,576) (6,311) (10,887)
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 note 28 of Alumasc's Report and
Accounts for the year ended 30 June 2025.
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