4th Feb 2014 10:16
LONDON (Alliance News) - Building and engineering products business Alumasc Group PLC Tuesday reported an increase in profit for the first half, as its two main divisions, engineering and building products, made gains
The company, which designs and manufactures products for the construction industry posted pretax profit of GBP2.4 million for the six months ended December 31, 2013, up from GBP1.1 million a year earlier.
This was attributed to a number of factors including a return to "modest profit" for its engineering products division and a steadily improving performance by the roofing business.
The engineering products division delivered profit of GBP100,000 compared with a loss of GBP300,000 a year earlier boosted by recovering customer demand.
Revenue fell 4% to GBP57.2 million from GBP59.2 million in the corresponding period. But profit was lifted by improved profit margins, better-than-expected cashflow, and a lower interest charge for the period on reduced net debt, Alumasc said.
Building products revenue fell 5% to GBP42.4 million, due to lower revenues from the GBP12 million Kitimat contract in Canada, which has been beset by delays, and completion of work under the Community Energy Savings Plan last year.
Underlying earnings per share increased to 6.5 pence from 5.7 pence, and basic earnings per share more than doubled to 5.2 pence from 2.2 pence, both benefiting from higher profits and a lower UK tax rate.
Looking ahead, the firm's order book stood at GBP35 million at December 31, 2013, compared with GBP44 million in June 2013 and GBP46 million in December 2012. The reduction can be explained by billings on the Kitimat contract and other large construction contracts over the last year, Alumasc said.
The board increased its interim dividend 10% to 2.2 pence per share from 2.0 pence per share.
The stock was trading at 135.00 pence Tuesday morning, down 7.50 pence or 5.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Alumasc Group