30th Oct 2014 10:25
LONDON (Alliance News) - Building and engineering products company Alumasc Group PLC on Thursday said its trading in the first quarter of the new financial year is in line with expectations, with revenue up year on year, as a strong performance in its Building Products arm offset weakness in its Engineering Products division.
The company said group revenue from continuing operations in the quarter to the end of September was up 5%. Building Products revenue was up 9%, but Engineering Products revenue fell 10% in the period.
Alumasc said the Building Products business is benefiting from improving demand in the market, the introduction of new products and export market penetration. It said its roofing and walling businesses both performed well, and the group said it expects the full-year results for the Building Products arm to come in ahead of expectations.
For Engineering Products, Alumasc Precision Components has continued to operate broadly flat in earnings before income, taxation, depreciation and amortisation terms on lower sales. The unit was recently informed by an unnamed European customer that replacement work on a new engine variant will not be awarded to the unit and said negotiations to settle the account are ongoing.
The group said that, as part of the strategic review it announced in September, it has concluded the Alumasc Precision Components business no longer fits its business model and it in early talks to sell the business.
Dyson Diecastings, the other part of its Engineering business, is trading in line with expectations and will not be impacted by the sale of the Precision Components arm, it said.
Alumasc shares were untraded on Thursday and last traded at 126 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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