15th Aug 2005 10:30
Alumasc Group PLC15 August 2005 THE ALUMASC GROUP PLC Copal Sale Discussions Alumasc, the high specification building and engineering products company,announces that Alumasc Precision Limited (APL), its engineering subsidiary, isin discussions which could lead to the sale of Copal Casting, one of APL's threeoperations. In its Interim Statement dated 10 February 2005, Alumasc announced that, due tocontinuing weakness in demand from automotive customers, it was undertaking areview of capacity in APL, which contributed 32% to the group's operatingprofits in the year to 30 June 2004. At the same time, a 90 day consultationbegan with the workforce at Copal. Subsequent events at Rover, a major customer of APL, and in particular of Copal,made this review even more essential than at the time of its announcement. In the light of this review, and in particular the loss of Rover's business, theBoard has concluded that Copal, which has been operating at a loss for severalyears, is no longer viable in its present form. Discussions are taking placewith a number of parties who have expressed an interest in the Copal businessand a further consultation is taking place with the workforce. While a sale of the business is likely to be at a discount to Copal's net assets(£3.6m at 30 June 2004), the ongoing business would benefit from the eliminationof the operating loss. Higher profits from its Building Products Division should enable Alumasc toachieve underlying profits for the year to 30 June 2005, excluding Copal, inline with market expectations for the group prior to Rover's demise. Alumascexpects to announce its results early in September. Enquiries:The Alumasc Group plc 01536-383 844Paul Hooper (Chief Executive)David Sowerby (Finance Director) Bankside Consultants LimitedCharles Ponsonby 020-7367 8851 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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