16th May 2014 09:58
LONDON (Alliance News) - Building and engineering products business Alumasc Group PLC Friday said it had been hit by the very wet winter which led to delays on construction projects, but it is now seeing a pickup in demand, particularly for its building products, and it therefore expects to meet is full-year expectations.
Revenue since January 1 is about 6% below the same period last year, due to the extremely wet winter weather that delayed a number of large construction projects, particularly for its solar shading and roofing businesses, it warned.
However, "activity levels in the building products division have been improving in recent weeks and latest sales forecasts suggest that trading in June will be stronger than in any month so far this financial year," the company said. "The board therefore expects, in the absence of further unforeseen delays, full year results to be in line with previous management expectations."
It said its Alumasc Rainwater, Harmer Drainage, Rainclear and Timloc businesses are performing very strongly, whilst trading is yet to pick up for businesses supplying larger projects to the commercial new build market in particular.
In a statement, the company said its order book stands at GBP37 million, up from GBP35 million at the end of December, but below the GBP44 million in the book at the end of its last financial year on June 30, 2013.
It said demand for precision engineering products has remained at similar levels to earlier in the financial year, with Alumasc precision components continuing to make steady progress in its recovery plan and Dyson Diecastings still performing well.
"Cash flow across the group remains strong and average levels of net debt continue to be the lowest since 2006, leading to lower interest costs on borrowings compared with last year," it added.
Alumasc shares were down 3% at 120.53 pence Friday.
By Steve McGrath; [email protected]; @stevemcgrath1
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