Interim Results

Tuesday 3 February 2026

The Alumasc Group plc

Interim results

Resilient performance, on track for delivering on FY expectations

Alumasc (ALU.L) (the 'Company' or the 'Group'), the sustainable building products, systems and solutions Group today announces its results for the six months ended 31 December 2025 ('H1 FY26').

· Resilient performance against a strong prior year comparator; market share gains together with a healthy and growing order book and robust pipeline underpins continued anticipation of a materially stronger H2, in line with management's expectations

· Group revenue £50.4m (H1 FY25: £57.4m):

o  Continued demand headwinds from Building Safety Act-related project delays and affordability issues, with Q2 further impacted by uncertainty caused by the Autumn budget

o  H1 FY25 comparator includes £5.5m revenue from substantial Chek Lap Kok (CLK) airport project in Hong Kong (H1 FY26: £0.1m), further revenues from CLK expected in H2 FY26

· Group underlying* operating margin reflects lower H1 FY26 revenues at 8.9% (H1 FY25: 14.1%):

o  Further action taken to drive efficiency and margins; £1.1m of annualised cost savings achieved

o  Medium term target remains 15-20%

· Underlying* profit £4.0m (H1 FY25: £7.5m) reflects expected weighting to H2 FY26

· Statutory profit before tax of £4.0m (H1 FY25: £6.5m)

· Interim dividend per share of 3.5p (H1 FY25: 3.5p) maintained, reflecting strong financial position and continued confidence in prospects

· Strong balance sheet, with net debt of £7.7m (H1 FY25: £4.6m), representing a conservative leverage ratio of 0.5x (H1 FY25: 0.3x):

o  Temporary working capital build towards end of Q2 FY26, in order to meet growing order intake for H2 FY26

o  £0.5m non-underlying cash receipt from sale of Dover property in period

· Improved defined benefit pension scheme position: IAS19 surplus of £7.1m (Dec 24: £3.5m; June 2025: £4.8m):

o  Annual contributions reduced from £1.2m to £0.7m from September 2025

o  Scheme substantially de-risked; low dependency target expected to be reached by 2030

· Water Management team strengthened with two Managing Director appointments, encouraging progress being made

· Pamela Bingham joining as CEO Designate on 2 March 2026, Paul Hooper retiring as Chief Executive on 31 March 2026 to allow for an orderly handover

Outlook

· Strong order book, with growing momentum:

o  Excluding CLK project, Group order book 27% higher than December 2024, and 50% higher than December 2023

o  Includes £2m order for first phase of project at Changi Airport in Singapore, substantial potential for further work

· Robust pipeline of future near- and medium-term UK and overseas opportunities

o  Infrastructure pipeline includes defence expenditure, schools rebuilding programme, new hospitals programme, expansion of prison estate, and upgrades to the transport and energy networks

o  Growing pipeline of overseas specifications outside of traditionally strong Asia and Middle East territories

· Some early signs of improving business and consumer confidence

· Interest rate reductions and Government reforms to Building Safety Regulator and National Planning Policy Framework ('NPPF') should help unlock latent demand over 2026

· Alumasc remains strategically positioned to capitalise on the shift toward sustainable construction and green buildings

As a result, the Board remains confident in the Group achieving its expectations for the year to June 2026, and in the significant opportunities available over the medium and longer term.

Commenting on the interim results, Paul Hooper, Chief Executive of Alumasc said:

"As set out in October's trading update, we have had to manage a more challenging backdrop in the first half, with underlying headwinds compounded by uncertainty ahead of the delayed 2025 Autumn Budget. Despite this, the Group has again shown its resilience and agility, enabling it to maintain its strategic progress. We have been successful in identifying opportunities to outperform in our target markets, and the management team has taken further action to deliver substantial cost savings, while continuing to invest in innovation and overseas growth.

It has been pleasing to see strong momentum developing in our order intake in the latter part of Q2. At December 2025 our order book - excluding the CLK airport project - stood 27% higher than a year ago, and 50% higher than December 2023. This encouraging position at December 2025, together with a robust pipeline of future opportunities, gives us confidence in our ability to deliver a full year result in line with our expectations.

With our strong portfolio of sustainability-linked products and the medium-term prospect of market recovery, we remain well positioned to deliver substantial shareholder value."

* a reconciliation of underlying to statutory profit is provided in note 4

Enquiries:

REVIEW OF INTERIM RESULTS

Group Performance Summary

* a reconciliation of underlying to statutory profit is provided in note 4

H1 FY26 represented a resilient performance, against a more challenging backdrop. Our UK construction markets were appreciably softer on a year-on-year basis, against a tougher comparative as H1 FY25 had yet to be significantly affected by the industry-wide planning delays and affordability constraints seen in the second half of FY25. These issues were further compounded in Q2 FY26 by the uncertainty caused by the delayed Autumn 2025 Budget, and a temporary pause in shipments to the large CLK airport project in H1 FY26, which contributed £5.5m of revenue to the prior half year.

As expected, Group revenue declined by 12% to £50.4m (H1 FY25: £57.4m). UK revenue declined by 5% to £46.9m (H1 FY25: £49.3m), amidst the steepest downturn in UK construction output since COVID. Overseas revenue was 56% lower at £3.5m (H1 FY25: £8.1m). The prior period included £5.5m of revenue from the CLK project, with only a very modest contribution in H1 FY26. Encouragingly, CLK work is now resuming and the remaining c.£2m of orders are expected to be shipped in H2 FY26 and, more broadly, good progress has been made in developing export opportunities more generally.

We undertook decisive action to reset costs and capacity to reflect the near-term outlook in the UK, and through operational efficiencies delivered £1.1m of annualised savings, with a half year benefit immediately available in H2 FY26.

Our focus continues to be on our strategic growth initiatives: continuing to build our position as market leader in sustainable building materials, accelerating organic growth and driving margin improvement, and continuing to invest in our future growth.

It was therefore pleasing to see strong momentum developing in both our UK and overseas order intake in Q2. At December 2025 our order book - excluding the CLK airport project - stood 27% higher than a year ago, and 50% higher than December 2023, and our pipeline of future sales opportunities is robust and growing.

We have been successful in winning a number of overseas projects in the period, most notably in December 2025 with a £2m initial order for a project at Changi Airport in Singapore. Our investment in overseas technical sales resource is increasing both the reach of our product specifications and our ability to generate revenue from them, and our order book and pipeline include a growing contribution from territories outside of our traditional areas of strength in Asia and the Middle East.

Operational Review

Water Management

* prior to restructuring costs of £236k (H1 FY25: £690k) and amortisation of acquired intangible assets of £212k (H1 FY25: £212k)

Water Management revenue declined by £6.9m (23%), of which the CLK project accounted for £5.5m. There was however some encouragement with continued export opportunities and pipeline build-up in our target geographical areas. Work at CLK airport has also resumed and we expect to ship the remaining c.£2m of orders in H2 FY26.

Excluding the CLK project, divisional revenues declined by 6%, with some of our key UK markets subdued. On mid-high rise construction, we have seen continued project delays from the implementation of the Building Safety Act. Alongside this, the continued low level of UK housing volumes also constrained activity, given the division's exposure to housebuilding. These were further exacerbated by uncertainty ahead of the delayed 2025 Autumn Budget, which impacted confidence in an already fragile market.

Our December result was encouraging, indicating some level of confidence returning. This was supported by the Royal Institute of Chartered Surveyors' December 2025 Residential Market Survey, which reported improving near- and twelve-month activity indicators, assisted by the recent fall in interest rates.

Due to operational gearing, our operating margin was affected by the lower volumes, declining to 6.4% (H1 FY25: 15.8%). In response to this, we undertook a restructuring of our Burton Latimer (rainwater goods) and Halstead (covers and drainage) sites, removing an annualised £1.1m of overhead, with the associated £0.2m cost presented as a non-underlying item. These efficiencies, together with volume growth and operational gearing, will improve margins in the second half of the financial year.

A significant uplift in activity in both the UK and overseas is expected in H2.

As well as seeing the resumption of sales to the CLK project in H2, we were very pleased to win the first phase of work at a project at Changi Airport in Singapore. This order is worth an initial c.£2m, with subsequent phases - not yet tendered - potentially worth a further £10m-£15m. Other good sized orders where we have a high expectation of success are being negotiated in South America, Africa and South Asia.

UK demand is expected to be supported by the recent reductions in interest rates, and planned Government investments on defence and the prison estate capacity. Recent Government actions on Building Safety Act approvals and NPPF reforms should, in time, help release pent-up demand. The division also entered H2 FY26 with an order book of £7.6m, 3% higher than December 2024; excluding the CLK project, the order book growth was 53% compared to December 2024, and 66% compared to December 2023.

Building Envelope

* no adjustments in H1 FY26 or H1 FY25

Building Envelope division had a high level of activity in H1, which was not fully reflected in its sales performance due to project delays caused by the implementation of the Building Safety Act, as well as the uncertainty arising from the Autumn Budget. Revenue for the half year was 6% lower than H1 FY25, with the underlying operating margin lower at 10.0% (H1 FY25: 12.5%). In line with the other two divisions however, Building Envelope had an encouraging performance in December (post Budget), with much-improved order intake momentum.

The division's focus on outstanding technical support is continuing to grow its share in an increasingly regulated and sustainability-driven market. The sales opportunity pipeline from blue chip private landlords and public sector work is at a record level, supported by strong specifications, improving the visibility of future work. A new single ply offering, Aluply, was launched in November 2025, bringing cost advantages and resulting in increased enquiries from both the newbuild and refurbishment sectors.

The division's order book at half year end was £6.9m, 11% higher than December 2024 and 38% higher than December 2023, with a robust pipeline of future opportunities that gives us confidence for an improved second half.

Housebuilding Products

* no adjustments in H1 FY26 or H1 FY25

With housebuilding volumes in late 2025 falling to their lowest level since Covid, the Housebuilding Products division ('Timloc') performed extraordinarily well, growing its revenue by 15%, and its operating profit by 17% to £2.2m.

As a number of competitors suffered supply issues, many customers relied on Timloc's industry-leading next-day delivery service and low carriage-paid order values. This included securing new trading agreements with a major national merchant and a specialist building plastics provider.

Timloc continued to gain market share, particularly in roofing ventilation and roof tile vents, where Timloc have now established themselves in this adjacent channel, with roofing merchants valuing the extensive product range and next-day service. Timloc have invested in a new 1000 tonne injection moulding machine, which was commissioned in January 2026 to support additional growth in this product category.

Towards the end of 2025, Timloc launched their Loftite loft door, a new design which has created much interest. It exceeds the airtightness requirements of the Building Regulations part L1 and L2, and can help buildings achieve the higher performance levels required by both the Code for Sustainable Homes and the Future Homes Standard. To maximise performance, the frame incorporates two separate air seals, ensuring excellent airtightness at both the door to frame and frame to ceiling interfaces. Loftite's patent-pending fitting slots are designed for rapid and straightforward single person installation. Going forward, Timloc will focus on securing specifications for this product with housebuilders. Further new products are also planned to be launched in 2026 to expand Timloc's basket of products and secure more market share.

This very well managed division goes from strength to strength and is well placed to benefit further from the eventual recovery in housebuilding demand.

Strategic Overview

Our strategic focus remains on our priorities to deliver long term value creation:

- Championing sustainable building products

- Accelerating sales growth

- Driving margin improvement

- Value-enhancing investment in people, plant and M&A

Alumasc champions the use of recycled materials to make high quality, durable and low maintenance products that are themselves recyclable at the end of their life. Over 80% of our products address environmental challenges facing the built environment: building decarbonisation and energy efficiency; climate resilience; and providing green spaces in an urban environment.

Despite the recent challenging market conditions, we believe these long-term growth drivers are stronger than ever, supported by an unwavering customer focus and excellent technical support. The Group has continued to gain share in its key UK markets, against a challenging backdrop, and is very well positioned to benefit when volumes recover. Overseas opportunities continue to grow, supported by the recent investments in technical sales resource in key territories.

Despite the decline in operating margin in the period, the Group's operational gearing means this will recover as volumes improve in H2 FY26. Targeted actions were taken to right-size headcount during the period, with £1.1m of annualised cost reductions in the Water Management division. We were also encouraged by the performance of the Housebuilding Products division in the period.

We have continued to invest selectively to support long-term growth, with capital spend focussed on capability/capacity extensions, new product development and efficiency improvements. Our Water Management team was strengthened in the period with two senior appointments. Steve Dann was promoted from ARP Managing Director to Managing Director of Rainwater Products, incorporating ARP and AWMS. Peter Blanchard also joined the Division as Managing Director of our Covers and Drainage business (Gatic/Wade), based in Halstead, Essex. Peter has a successful track record and significant experience of specialist access covers and other high end specified airport products.

Cash Flow and Net Debt

* December 2024 restated to present vehicle leases as lease liabilities in accordance with IFRS16.

The Group's underlying operating cash flow was £4.6m, £6.3m lower than H1 FY25 (£10.9m), due to the lower underlying operating profit and a £2.1m cash outflow into working capital (H1 FY25: £1.1m inflow), which was due to a temporary increase in inventories, in order to meet the growing order intake for H2 FY26. This is expected to unwind as the second half progresses.

Pension scheme funding of £0.5m (H1 FY25: £0.6m) reflects the reduction in annual contributions from September 2025 - from £1.2m to £0.7m - agreed with the trustees at the 2025 triennial funding review.

Cash generated by underlying operating activities represented 91% (H1 FY25: 127%) of underlying operating profit.

Non-underlying cash receipts of £0.2m include £0.5m from the sale of a property in Dover, vacated by the relocation of the access covers manufacturing operations to Halstead, net of £0.3m of non-underlying costs incurred in the reorganisation of the Water Management division.

Capital expenditure was £1.2m (H1 FY25: £2.0m), 60% (H1 FY25: 133%) of depreciation. Interest payments were £0.5m (H1 FY25: £0.6m), and tax paid was £0.5m (H1 FY25: £1.2m), lower than the prior period due to the timing of payments and refunds - full year payments are expected to be more closely aligned with the tax charge.

After repayments of lease principal and other cash flows totalling £0.9m (H1 FY25: £0.6m), free cash flow was £1.2m (H1 FY25: £5.4m).

Own share purchases, to satisfy employee share awards, totalled £0.4m (H1 FY25: £0.1m), and after dividend payments of £2.7m (H1 FY25: £2.6m), net bank debt increased by £1.9m (H1 FY25: £2.7m decrease).

Net bank debt (before IFRS16 lease liabilities) at H1 FY26 was £7.7m (H1 FY25: £4.6m), representing a conservative leverage ratio of 0.5x (H1 FY25: 0.3x), comfortably within our bank covenant of less than 2.5x.

Pension surplus and Net Assets

The Group's IAS 19 defined benefit pension surplus at December 2025 was £7.1m (December 2024: £3.3m; June 2025: £4.8m); the improvement a primarily a result of improved asset returns. Reduced annual contributions of £0.7m (down from £1.2m) from September 2025 were agreed with the trustees at the 2025 triennial review; and we expect the scheme to reach a self-sufficient position, substantially de-risked and requiring no further company contributions, by 2030.

Group net assets increased to £42.4m (H1 FY25: £41.0m), as a result of the retained profit after dividend distributions and the increased pension surplus.

Interim Dividend

Reflecting its confidence in the Group's outlook, the Board has declared an unchanged interim dividend of 3.5p per ordinary share (H1 FY25: 3.5p), payable on 8 April 2026 to shareholders on the register on 20 February 2026. The closing date for dividend reinvestment plan (DRIP) elections is 16 March 2026.

CEO Succession

As announced on 15 January, Pamela Bingham will join the Board on 2 March 2026 as CEO Designate, and will take over as CEO on the retirement of the current Chief Executive, Paul Hooper, on 31 March 2026. Pamela has extensive commercial experience, with a strong record of value creation through organic and inorganic growth, and of running successful employee engagement, digital transformation and customer loyalty programmes, all of which will be helpful as she leads Alumasc through its next stage of growth.

Outlook

We continue to expect some market recovery later in 2026, with reducing interest rates and some easing of the Building Safety Act delays, although the timing of this is uncertain. In any event, we remain confident in our ability to outperform our markets, and have been encouraged by the improved order intake exiting Q2. With a strong order book at December 2025, together with a robust pipeline of future opportunities, we are confident in our ability to deliver a full year in line with the Board's expectations.

With our strong portfolio of sustainability-linked products, we remain well positioned to deliver substantial shareholder value as markets recover over the medium term.

Paul Hooper, Chief Executive Simon Dray, Group Finance Director

3 February 2026

CEO Succession - a personal message from Paul Hooper, Chief Executive

I have spent 25 years at Alumasc, two as Group MD and 23 as Chief Executive. I will retire at the end of March 2026 and I would like to take this opportunity to thank all of my colleagues, our customers and suppliers, our shareholders, our brokers and other advisers, and those I have bought companies from and sold to, for their fantastic support. There has never been a boring moment and after a fascinating ride I would like to hope that that our Group, now focussed on sustainable building products, is in a stronger place. I wish every future success to the Group (under the new leadership of Pamela Bingham).

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

for the half year to 31 December 2025

Reconciliations of underlying to statutory profit and earnings per share are provided in notes 4 and 10 respectively.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

at 31 December 2025

* December 2024 restated to present vehicle leases as lease liabilities in accordance with IFRS16.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

for the half year to 31 December 2025

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

for the half year to 31 December 2025

1. Basis of preparation

The condensed consolidated interim financial statements of The Alumasc Group plc and its subsidiaries have been prepared in accordance with International Financial Reporting Standards (IFRS) in conformity with the requirements of the Companies Act 2006 that are effective at 31 December 2025. 

The condensed consolidated interim financial statements have been prepared using the accounting policies set out in the statutory accounts for the financial year to 30 June 2025 and in accordance with AIM Rule 18, and the same accounting policies will be adopted in the 2026 annual financial statements.

The consolidated financial statements of the Group as at and for the year ended 30 June 2025 are available on request from the Company's registered office at Burton Latimer, Kettering, Northants, NN15 5JP or on the website www.alumasc.co.uk.

The comparative figures for the financial year ended 30 June 2025 are not the Company's statutory accounts for that financial year but have been extracted from those accounts. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The condensed consolidated interim financial statements for the half year ended 31 December 2025 are not statutory accounts and have been neither audited nor reviewed by the Group's auditors. They do not contain all of the information required for full financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 30 June 2025. 

These condensed consolidated interim financial statements were approved by the Board of Directors on 3 February 2026.

The Group performed ahead of the Base Case trading scenario modelled as part of the 30 June 2025 year end Going Concern review, and also ahead of the stress testing performed. On the basis of the Group's financing facilities and current financial plans and sensitivity analyses, the Board is satisfied that the Group has adequate resources to continue in operational existence for twelve months from the date of signing this report and accordingly continues to adopt the going concern basis in preparing these condensed consolidated interim financial statements.

2. Estimates

The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, income and expense. Actual results may differ from these estimates.

Except as described below, in preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 30 June 2025, namely the valuation of defined benefit pension obligations and the valuation of the Group's acquired goodwill.

During the six months ended 31 December 2025, management reassessed and updated its estimates in respect of retirement benefit obligations based on market data available at 31 December 2025. The resulting impact was a £1.7 million pre-tax actuarial gain, calculated using IAS 19 conventions, recognised in the six-month period to 31 December 2025.

3. Risks and uncertainties

A summary of the Group's principal risks and uncertainties was provided on pages 53 to 56 of Alumasc's Report and Accounts for the year ended 30 June 2025. The Board considers these risks and uncertainties remain relevant to the current financial year.

Specific risks and uncertainties relating to the Group's performance in the second half year are:

- Inflation and interest rates, and their impact on the Group's construction markets;

- Prolonged periods of bad weather which may impact the Group's construction markets; and

- Potential impacts on customer demand or our supply chain from the current global geopolitical environment.

4. Underlying to statutory profit reconciliation

The Group reports underlying profit and underlying earnings in addition to the financial information presented under IFRS. The Board believes that underlying profit and underlying earnings provide additional and consistent measures of underlying performance by removing items that are not closely related to the Group's day-to-day trading activities and which would typically be excluded in assessing the value of the business.

Underlying profit and underlying earnings are used by the Board for internal performance analysis, planning and employee compensation arrangements, and are not defined terms under IFRS, and may therefore not be comparable with similarly titled measures reported by other companies. They are therefore not intended to be a substitute for, or superior to, IFRS measures of profit and earnings.

In the presentation of underlying profits, management disclose the amortisation of acquired intangible assets and IAS 19 pension income and costs consistently as non-underlying items because they are material non-cash and non-trading items that would typically be excluded in assessing the value of the business.

In addition, management has presented the following specific items that arose in H1 FY26 and H1 FY25 as non-underlying as they are non-recurring items that are judged to be significant enough to affect the understanding of the year-on-year evolution of the underlying trading performance of the business:

· One-off restructuring and legal costs representing the costs of a restructuring of the Water Management division, including a restructuring of the division's sales and commercial teams.

· Acquisition expenses relating to professional fees incurred in the Group's acquisition activities.

· Profit on disposal of the Water Management division's site in Dover, following the relocation of its activities to the division's site in Halstead.

4. Underlying to statutory profit reconciliation (continued)

Impact on cashflow

Of the £20,000 credit (H1 FY25: £952,000 charge) non-underlying items recognised, £118,000 credit (H1 FY25: £499,000 charge) was settled in cash. No costs (H1 FY25: £191,000) are due to be paid in the second half of the financial year, and £98,000 charge (H1 FY25: £262,000 charge) relates to non-cash amortisation of acquired intangible assets and IAS 19 pension income/costs.

5. Segmental analysis

In accordance with IFRS 8 Operating Segments, the segmental analysis below follows the Group's internal management reporting structure.

Sales to external customers by geographical segment

6. Net finance costs

7. Tax expense

8. Dividends

The Directors have approved an interim dividend per share of 3.5 pence (FY25 interim dividend: 3.5 pence) which will be paid on 8 April 2026 to shareholders on the register at the close of business on 20 February 2026. The cash cost of the dividend is expected to be £1,257,000. As the dividend was approved after the statement of financial position date, it has not been accrued in the interim consolidated financial statements. A final dividend per share of 7.6 pence in respect of the 2024/25 financial year was paid at a cash cost of £2,729,000 during the six months to 31 December 2025.

9. Share Based Payments

During the period the Group awarded 240,000 options (H1 FY25: 195,000) under the Executive Share Option Scheme ("ESOS"). These options have an exercise price of 247.5 pence and require certain criteria to be fulfilled before vesting. 154,170 existing options were exercised during the period (H1 FY25: 79,445) and 30,000 options lapsed (H1 FY25: 17,868).

Total awards granted under the Group's Long Term Incentive Plans ("LTIP") amounted to 197,316 (H1 FY25: 189,006). LTIP awards have no exercise price but are dependent on certain vesting criteria being met. 181,293 existing LTIP awards were exercised during the period (H1 FY25: 118,119) and 125,973 existing LTIP awards lapsed (H1 FY25: 95,901).

10. Earnings per share

Basic earnings per share is calculated by dividing the net profit for the period attributable to ordinary equity shareholders of the parent by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share is calculated by dividing the net profit attributable to ordinary equity shareholders of the parent by the weighted average number of ordinary shares in issue during the period, after allowing for the exercise of outstanding share options. The following sets out the income and share data used in the basic and diluted earnings per share calculations:

11. Movement in borrowings