Alumasc Shares Fall As Financial Year Set To Be Below Expectations

14th Mar 2018 10:26

LONDON (Alliance News) - Shares dropped in Alumasc Group PLC on Wednesday as it said it expects pretax profit and revenue for its current financial year to drop below expectations.

Shares in the building products company fell 21% at 132.55 pence on Wednesday.

Alumasc's management expects revenue for the year to the end of June to be 5.0% below expectations, leading to underlying pretax profit being 15% below expectations.

This follows a slower-than-anticipated third-quarter performance in terms of revenue and order intake, due to continued delays in building contractor customers committing to new work due to margin pressures, economic and political uncertainty caused by reports of declining construction output in the new build sector, and delays to housing refurbishment contracts in Scotland.

These issues have namely had an impact on the UK Solar Shading business, the Roofing & Walling division, and the Gatic business, which is expected to carry into the final quarter.

However Alumasc said it remains positive over the recent acquisition and integration of drainage business Wade, continued investment in growth resources and added capacity, including the commissioning of the Timloc factory in January.

"Whilst Alumasc is not immune to current market headwinds, there have been numerous positive strategic developments across the group over the last year that make Alumasc well positioned to continue its recent underlying growth trajectory over the medium to longer term," the company said in a statement.

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